An increasing percentage of industrial occupiers are choosing to buy rather than rent their facilities, according to a CBRE study.

Property sales to industrial occupiers grew 32% last year to 2,504, resulting in a 5% increase in the average sale price to $152.42 per square foot, said CBRE. The third quarter saw the most sales at 682 and the highest price per square foot of about $160. According to the report, industrial sales fell to 623 during the fourth quarter. By comparison, there were 451 industrial sales during the first quarter of 2023, and the average sale price was around $136 per square foot.

Occupiers are choosing ownership over renting for several reasons, including long-term savings once the mortgage is paid off, tax deductions for mortgage interest, property taxes, certain operating expenses, and the ability to customize or renovate the property to meet unique needs. In addition, property value appreciation provides an attractive long-term investment return, and occupiers don’t have to worry about rent increases or lease terminations, said the report.

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