United States Industrial Outlook | Q1 2024

Industrial fundamentals continued to normalize to their pre-pandemic figures in the first quarter of 2024. Q1 marked the sixth consecutive quarter of declining absorption which started 2024 with 27.9 million s.f. absorbed. Despite stagnant absorption, leasing activity increased 30.2% quarter over quarter with 137.6 million s.f. of leasing activity. As anticipated, the slowdown in pre-leasing and overall leasing, coupled with higher-than-average deliveries caused the vacancy rate to continue to inch up to 6.1%, an increase of 40 basis points quarter-over-quarter. The availability rate also increased by the same amount quarter-over-quarter to 9.1%. New deliveries were down nearly 35% from the previous quarter with 109.3 million s.f. of new product coming online.