The coming year is likely to be one of transition for the industrial sector as the pandemic-driven supply boom that reached 1.1 billion square feet fades, according to a Yardi Matrix report. Industrial space has gone from scarcely available in 2021 and 2022 to more readily available for occupiers, with the national vacancy rate standing at 8% compared with less than 4% two years ago.
About 350 million square feet of industrial space is under construction, representing 1.7% of stock. Starts were just 236 million square feet in 2024, down 35% from 2023 and more than 60% from 2022.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
