2024 could be the third-highest year for industrial big-box leasing, CBRE projects. Even though a spate of new construction in 2023 brought a record 413 million SF to market, it expects that abundant supply to be short-lived.

"Investor sentiment has significantly improved from last year as industrial operating fundamentals remain solid and the credit market has stabilized," said Chris Riley, president, U.S. Industrial & Logistics, Capital Markets. "The increased demand is evident from purchase bid sheets that are three times deeper than those in Q4 2023."

Industrial facilities in the U.S., Mexico and Canada had higher taking rents in 2023 than in years past. Rent growth was sturdy at 15.9%, though below the 25.1% growth rate in 2022, CBRE reported in its 2024 North American Industrial Big-Box Review and Outlook. Rent grew despite a direct vacancy rate of 6.6% — double that of 2022 – and a 15.8% slump in leasing activity in 2023. North America's lowest vacancy rate (0.3%) was recorded in Mexico City, down from 1% in 2022.

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