Despite fears that vacancy in industrial CRE has been increasing, a new report from Crexi suggests that the market is stabilizing and the nation’s top 10 industrial CRE markets still offer significant opportunities for investment. Buyers are also showing a growing preference for eco-friendly buildings.

Heading the list of the highest-ranked metros is Cleveland. According to Crexi, the city is one of the country's largest industrial markets with “unparalleled opportunities for industrial warehouse investment with a strategic infrastructure that attracts logistics and manufacturing businesses,” along with a strategic location. Despite a slight slowdown in leasing activity, the market remains healthy, recording a 2.6% vacancy rate in Q3 2024. Annual asking rent is $4 per square foot, and the median sale asking price per square foot is $50.

Jacksonville came in second. In addition to its strategic location, strong economic growth and expanding infrastructure, the city’s population has surged to the point where it is now the 10th largest in the U.S. with growing private sector employment. The larger population has spurred demand for industrial spaces, especially in logistics and manufacturing. The expansion of the city’s SSA port terminal is also expected to double its capacity by mid-2025, further stimulating industrial demand. Even though its industrial vacancy rate rose to 6.1% in Q3 2024 due to new supply, the report said its stable rental rates demonstrate its resilience. Annual asking rent is $13 per square foot, and the median sale asking price per square foot is $111.