Industrial

Industrial and office categories dropped the most.

Vacancy rate tops 5%, net absorption positive as pre-leased facilities are delivered.

Industry boosts jobs, infrastructure, capital investment in those areas.

The 25-building portfolio was the largest industrial deal in the state last year.

While the REIT still has appetite for infill, it spent 40% less than its $2.4B binge in 2022.

It ticked up 60 bps to 5.2% in Q4, the highest it has been since Q3 2020.

Savills sees potentially lower supply and possibly lower vacancy rates by late 2024.

Softening industrial markets, interest rate cuts in the summer and a robust shadow lending sector.