Industrial and logistics rent growth has tempered a bit from its unprecedented high rate of the past 24 months, according to Colliers, which expects 2024 to see rates fall in line with the historical averages of between 3% and 8%.
With supply increasing while demand slows, rent growth should continue to slow throughout 2024 but remain the strongest asset class for rent growth, Ryan Severino Chief Economist and Head of US Research at BGO, tells GlobeSt.com.
"As industrial transitions from a 'box to store to other boxes' to a sophisticated, technologically oriented part of the integrated global supply chain, its value to the economy is increasing," Severino said. "That is supporting the structural increase in real rent levels."
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