A Snapshot of Industrial, Retail, and Hotel Performance
Green Street looks at sales in the first half of 2024.
The most recent real estate alert from Green Street has looked at the performance of different sectors. In addition to office and multifamily, which GlobeSt.com previously broke down, there are also industrial, retail, and hotel performances to analyze.
Industrial transactions during the first half of 2024 were down 2.2% from the same period of 2023. It was the lowest descent of any property type Green Street tracked. The top five metro markets for industrial growth were Denver, CO (+181.7%); Dallas/Fort Worth, TX (+118%); Fort Lauderdale, FL (+58%); D.C. Metro (+42.4%); and Phoenix, AZ (+41.7%).
Part of the increase was Amazon’s warehouse leasing increase in the second quarter, with 14 million new square feet of new commitments. That is almost the same as all of 2023. Green Street said that Amazon’s e-commerce volumes seem to be growing at a double-digit pace. Other major retailers aren’t growing at the same rate.
The five worst-performing metro markets for industrial were Houston, TX (-46.3%); New York, NY (-41.1%); Orange County, CA (-40.1%); Miami, FL (-38%); and Los Angeles, CA (-21.9%).
In retail, the category volume was down by 22.9% year-over-year. Sales were down 6% from the first quarter. Strip centers had the smallest drop, being only -7%. Net-lease trades plunged 22% and mall deals fell by 46%.
One reason for the strip center position is a lack of new supply, which Green Street called a comparative “notable tailwind” compared to other property types.
The top five largest growth markets were San Francisco, CA (+228.8%); Fort Lauderdale, FL (+75%); Tampa-St. Petersburg (+59.6%); D.C. Metro (+49.6%); and Orange County, CA (+35.3%).
The five worst-performing metro markets for retail were Philadelphia, PA (-60%); Dallas/Fort Worth, TX (-43.6%); Houston, TX (-42%); San Diego, CA (-27.8%); and Atlanta, GA (-22.9%).
Hotel sales have seen a small drop of 3% between the first half of 2023 and 2024. The percentage differences in growth were large. The top five were Inland Empire, CA (+638.6%); Oakland-East Bay, CA (+606.8%); Chicago, IL (+330.7%); Denver, CO (+238.6%); and New York, NY (+158.5%).
The five largest drops were San Diego, CA (-41.1%); Austin, TX (-37.9%); Orlando, FL (-31.9%); Tampa-St. Petersburg, FL (-14.8%); and Phoenix, AZ (-5.1%).