So far this year, stabilization has been the word for industrial real estate. Considerable reshoring tailwinds are contributing to a surge in manufacturing development. Still, the overarching trend in industrial is of rising vacancies in most markets, even as some experience double-digit rent growth.

As more domestic manufacturing facilities near completion in key markets, secondary development from support operations is sure to follow. These new reshoring projects also stand to become an additional cog in the global supply chain which has been tested several times in recent memory.

The Atlanta real estate market made the list at #5, scoring well across the following metrics:

• The Atlanta market marked the 10th-largest expansion in Q3 2024, adding 2.8 million square feet for a 0.5% inventory increase.

• The metro recorded the 5th-lowest percentage of industrial loans maturing in 2024, with 2.8% of its $12 billion in industrial loans reaching maturity this year.

• At the close of Q3, Atlanta recorded a vacancy rate of 6.1%, trending up after a 0.4% quarter-over-quarter increase.

• Looking at the pipeline, the market has now 8.7 million square feet of industrial space under construction – translating to 1.5% of its current inventory. 

General Key Highlights:

• Overall, Phoenix claimed the top spot in our ranking report for industrial real estate followed by Charlotte and Miami in second and third place.

• With construction slowing down across the board, the pipeline for the 30 major markets in the study totals 200 million square feet. Phoenix leads the way with the largest upcoming inventory at 32.6 million square feet.

• Notably, 29 out the 30 markets in our study experienced rent increase in the last year, with Orange County boasting the highest rent ($15.7) per square foot.

• Bridgeport had the lowest vacancy rate in the country at 3.8%. Also, 28 out of 30 markets saw rising vacancies year-over-year.

For the full report visit www.commercialcafe.com