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.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.