Once again, CommercialEdge's National Industrial Report for November 2023 confirms that the state of the nation's industrial property market is healthy. Rents continued to rise over year-ago figures in each of the 30 largest markets in the U.S. – especially those along the coasts — even though vacancies have increased slightly. Rents per SF for new leases signed rose even more dramatically.

One factor underlying the demand for industrial space is the rapid development of the electric vehicle (EV) sector in many states. The demand comes not just from EV manufacturers themselves, but also from the multiple suppliers of parts and components involved in assembling the cars and the batteries that propel them, the report noted.

"EV and battery manufacturing will also require extensive supplier networks occupying millions of square feet of industrial space. The interactions between materials and parts providers with the manufacturers will also require additional logistics space," the report said. "Our industrial property market outlook predicts that the production of EVs, their batteries and the suppliers' networks will drive industrial demand for the foreseeable future."