Balance could soon return to the industrial sector as vacancy rates peak, new supply and tenant demand reach equilibrium, and rent growth stabilizes, according to Colliers 2025 Commercial Real Estate Outlook.
That will be a welcome relief after a surge in development drove up the national industrial vacancy rate by more than 250 basis points since 2023.
“While some markets are already ahead of the curve, others will follow suit in the coming year as the market gears up for its next growth cycle,” commented Stephanie Rodriguez, national director for industrial services. Indeed, the report said new construction starts could resume in late 2025 in markets where balance has already been achieved. It anticipated that industrial vacancy rates would peak by mid-year.
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