As demand for industrial space continues to outpace supply, rent growth is accelerating.
National in-place rents for industrial space averaged $7.12 per square foot in February, up 6.9% year-over-year and two cents higher than January, according to CRE research firm Yardi Matrix. Growth of in-place rents is highest in markets adjacent to shipping ports.
The national vacancy rate was 3.9% in February, a decrease of 10 basis points over the previous month, found Yardi Matrix's March 2023 National Industrial Report. More than a billion square feet of new stock has been delivered over the last 10 quarters, but vacancy rates remain historically low. Most markets have so far been able to absorb record levels of new supply.
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