The industrial vacancy rate topped 5% in the fourth quarter for the first time in three years and that trend is expected to continue through 2024 as new supply outstrips demand, according to Colliers' Craig Hurvitz in a new report.
He said the vacancy rate is forecast to stabilize at around 6.5% during the second half of 2024, while markets with a significant amount of new product relative to the overall industrial inventory may see rates exceed 10%.
Big box space in particular has become increasingly difficult to fill, says Adrian Ponsen, national director of U.S. industrial analytics at CoStar Group. "Those challenges will likely persist during most of 2024," he tells GlobeSt.com.
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