A new method of ranking industrial markets using a two-dimensional grid reveals changes over time in both sales volume and volatility and claims to offer new insight into risks that may not be apparent in traditional one-dimensional models.

The grid was developed by NAIOP. "This may help investors and developers create better strategies around market entry and exit, and to more easily identify markets that match risk and return objectives or merit further examination," stated a report by NAIOP. 

The report analyzes transaction volume and capitalization rates data provided by CoStar. It sorts industrial markets into two groups — the largest 51 markets, and the next largest 51. The vertical axis measures transaction volume and the horizontal axis volatility. The report uses this technique to compare the positions of large and mid-sized U.S. industrial markets at the end of Q1 2019 and Q1 2023.