As we continue our industrial quarterly reports, I wanted to share key insights from our Director, Peter Kolaczynski, on the industrial real estate market in Q4 2024.

Industrial real estate remained one of the steadiest sectors, with development pipelines slowing and vacancies rising at a measured pace. Consequently, in the fourth quarter of 2024, the overall trend for the market continued toward absorption of the record-breaking development of years past. 

Our newest industrial report reveals:

• Ranked 5th among the most active industrial markets in Q4, Atlanta held steady, maintaining its position from the previous quarter.

• Atlanta experienced the 6th-largest market expansion by square footage, with 2.2 million square feet of industrial space added in Q4 2024. In terms of percentage growth, the city's inventory saw a 0.4% increase from the previous quarter.

• Looking at the pipeline, Atlanta currently has 8 million square feet of industrial space under development – the 8^th-largest amount among the markets in our ranking. This will bring the market’s stock up another 1.4%.

A few general key highlights:

• Phoenix maintained its position as the best-performing industrial real estate market, followed by California’s Orange County and the Inland Empire in second and third place, respectively.

• Orange County led the nation with the highest average rent, reaching $16.20 per square foot.

• Additionally, Orange County also recorded the lowest vacancy rate in the study at 4.2% in Q4 2024.

• In the fourth quarter, 34.5 million square feet of industrial space was added across 30 major markets, while another 188.2 million square feet is currently under development. Phoenix topped the rankings for both Q4 completions and under construction pipeline. 

For the full CommercialCafe report here: Industrial Market Ranking Report | CommercialCafe