United States Industrial Market Dynamics | Q2 2024

Industrial fundamentals softened in Q2 as occupiers continue to take a “wait and see” approach in their decision-making process. Absorption was even with the previous quarter, bringing the year-to-date absorption figure to 55.4 million s.f. For context, absorption through H1 ’23 was 120.3 million s.f. However, some markets posted negative absorption figures for reasons including consolidation of operations and lease expirations. Of the 113.3 million s.f. that was delivered, nearly 70% of that was vacant, causing the vacancy rate to increase to 6.6%. Rental rate growth was positive, passing the $10.00 per s.f. threshold for the first time, landing at $10.06 per s.f., a 5.8% year-over-year increase.