Industrial is feeling a big pinch in the first quarter of 2024. The period isn't over, so the final figures aren't in, but according to data from CoStar Group, if the current data trend continues, US industrial net absorption will see the weakest Q1 performance in over a decade.

Demand is so far off that even with the relative low inventory of industrial, compared to other property types, there isn't enough demand to snap up open space. And the last 10 years includes 2023, which has been notorious for its year-over-year transaction falloff.

A number of factors are pushing the lack of absorption, according to CoStar. Third-party logistics companies that had beefed up demand early in the pandemic. There was outsized demand from e-commerce, home delivery, and a need to store general inventory when it finally came out from damaged supply chains. But as things have normalized, they've needed less space and have been closing extra distribution centers and putting them up for sublease.