‘The Industrial Market Is Not Recession-Proof’: What One Top Industry Expert Predicts For CRE’s Favorite Sector in 2023

Fundamentals for the US industrial market have remained solid in 2022, but couldn’t keep up with last year’s record pace.  But the sector is not recession-proof, according to one top analyst – and deal flow is likely to slump in 2023 as occupiers recalibrate.

James Breeze, Senior Director, Global Head of Industrial & Logistics Research at CBRE, sat down with GlobeSt in advance of his upcoming keynote address at our industrial conference on December 8 in Scottsdale, Ariz., to talk about the trends he’s seeing within the in sector.  He noted that leasing activity for industrial looks to finish the year  at approximately 850 million sq. ft., the sector’s second-highest year on record. And despite a pullback in transaction volume, rent growth accelerated to a year-over-year growth rate of 18.9%, an all-time record, while vacancy rates hit a record low 2.9% at the end of the third quarter.