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Industrial Rents Causing 'Sticker Shock' In These Markets

Tenants whose multi-year leases are expiring are now facing rents averaging 25% higher as they look to renew.

By Lynn Pollack | December 07, 2021 at 07:34 AM

Industrial rents are expected to continue their steady march upward well into 2022, inducing sticker shock in occupiers of warehouse space in pricey markets like the Northeast and Southern California. 

A new report from CBRE indicates that for many industrial users, double-digit rent increases will be the norm: in central New Jersey, occupiers seeking to renew or move will see rents increasing by 64%, while users in California’s Inland Empire and the city of Philadelphia will experience increases of 62%, respectively.  California also is home to eight markets over the national average, thanks in part to historically low vacancy rates.

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