Multifamily is not the only CRE category where new construction has been slowing. Industrial has also been hitting the brakes.
Data from Yardi Matrix revealed that 358.8 million square feet of industrial space is currently under construction. That’s 1.8% of existing stock.
In 2021 and 2022, the U.S. industrial market saw “historic new supply levels," it said. During which, more than 1.1 billion square feet was delivered, the firm wrote in a February 2024 report. The amount of new space helped cool pent-up demand. But Yardi noted that the level of construction activity was “unsustainable over the long run.”
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