Industrial vacancy has risen for six straight quarters to reach 6.1% in June and more space is soon to be delivered. But developers need not panic as the tide is about to turn, according to Marcus & Millichap's midyear 2024 industrial report.

In those six quarters, the company noted, nearly 629 million SF of industrial space was delivered nationwide, increasing inventory by 3.5%. In 2Q 2024, the average asking rent fell for the first time since 2011, after spiking 44% over the preceding five years.

However, the report pointed out, that 27% of current vacancies occurred in just five metros: Atlanta, Dallas-Fort Worth, Houston, Riverside-San Bernardino, and Phoenix. Even though these are metros with high demand, vacancy is expected to rise as they are flooded with 108 million SF of new industrial space collectively in 2024, compared with 129 million SF to be spread among the remaining 31 metros studied.