Industrial prices are nearing those of prices in the office market, driven by an industrial boom that began with COVID-19 and a market that has remained strong despite normalizing demand and muted transaction volume due to elevated interest rates.

The average industrial sale price across the country was $142 per square foot in May, up 15.4% from last year and 71.2% from 2019, according to CommercialEdge's National Industrial Report. Assets in the office market are trading at about $165 per square foot.

Three of the top 30 industrial markets – Nashville, the Inland Empire and Philadelphia – saw prices more than double between 2019 and 2023, the report found. Other strong markets for industrial pricing include New Jersey, Charlotte, Dallas/Fort Worth and the Bay Area.

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