Fundamentals have been softening in the industrial asset class as demand declines and the overall vacancy rate expected to rise about 75 basis points over the next year. However, this erosion is not enough to change the landlord-tenant dynamics that current exist in the space. The industrial market will, in short, remain in landlord's territory, a new report by Colliers says.

Prologis agrees. It recently said the competition for industrial space will increase in 2024.

Says Colliers: "With a vacancy rate hovering around the low fives, the market will remain in favor of landlords and lease rates will climb, albeit at a slower pace than in the last two years."

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