Even with 2024 well underway, we are continuing to see turbulence within the industrial real estate and logistics sectors. Owners and operators are revisiting their approaches and reassessing their strategies in an environment where the only constants seem to be the rise of average asking rates and swell in vacancy rates.
Findings from a JLL report convey eight crucial takeaways all industrial property owners and operators should know. Here are those statistics.
8 industrial real estate stats property teams need to know
15.3% — The average asking rate YoY
Average asking rates continue their upward trend, escalating by 15.3% YoY to $9.74 per sq. ft.
52% — The decrease in industrial transaction volume YoY
The volume of industrial transactions continues to be below 2020-2022 levels.
5.4% — The increase in industrial inventory YoY
Based on the data for industrial assets currently under construction, an additional 485.3 million sq. ft. is slated to be delivered by the end of 2024.
18.6% — The increase in new deliveries QoQ
New deliveries ballooned 18.6% QoQ, bringing the 2023 total to 424.9 million sq. Ft.
4.9% — Where industrial vacancy rates now sit
While this figure may seem high (increased 70 basis points QoQ), it is below the historical average, which was 7.7% in 2013.
19.7% — The decrease in lease size YoY
The slowing of leasing coupled with cautious tenants have contributed to the average lease size contracting by 19.7% YoY.
38.6% — The percentage of 3PL leases out of the 25 largest leases
The increase in third-party logistics (3PL) activity can be attributed to the sustained growth of e-commerce and ongoing nearshoring activity.
101.5% — The increase in leasing volume from the energy & utilities sectors since 2019
These sectors are expected to remain active as they further progress towards ESG goals and expand manufacturing operations.
Industrial real estate outlook
Understanding these statistics is critical for industrial property teams and operators. They provide the necessary insights into the current trends, enabling teams to make informed decisions and adjust their game plans accordingly.
These statistics also show that despite the uncertainties and ongoing disruptions in the market, there are still opportunities for industrial property teams. The continued growth of e-commerce, the increasing emphasis on ESG initiatives, and the ongoing developments in the energy and utilities sectors all point towards potential areas of growth and expansion.
For more information on the industrial real estate industry, download the “Industrial CRE technology guide” for technology solutions and enhancements today’s leading CRE experts are talking about.
