The industrial and logistics real estate sector in the U.S. has experienced significant growth since 2020, attracting considerable attention from investors and industry professionals alike. In 2023, investments worth nearly 87 billion U.S. dollars targeted the sector, making it the
after multifamily. The strong demand for industrial properties has been driven by the
and the need for high-quality warehouses, fulfillment centers, and big box buildings to meet consumer demands.
Industrial and logistics real estate – an expanding market
Annual taking rents for industrial and logistics facilities have more than doubled between 2013 and 2023, reaching 8.43 U.S. dollars per square foot in 2023. This price increase indicates strong market demand, particularly from general retail and wholesale sectors, which comprised about 36 percent of
leased big-box industrial property in North America in 2023. The spike in absorption during the COVID-19 pandemic also led to a shortage of available properties on the market and a spike in construction. In 2022, the sector saw the
lowest vacancy rate on record, with the share of vacant industrial and logistics buildings amounting to just 3.7 percent. With a record
volume of new construction completions in 2022 and 2023, the vacancy rate increased, climbing to 6.42 percent in the second quarter of 2024.
Focus on the major industrial hubs
Lost Angeles, Chicago, and Dallas-Fort Worth are some of the
markets with the largest inventory in the country. Greater Los Angeles alone had over 1.7 billion square feet of industrial and logistics floor space in 2024. When it comes to demand, however, Houston – the sixth-largest market - recorded the highest demand in 2023. Conversely, Greater Los Angeles exhibited negative
net absorption during the same year, indicating that more space was vacated than newly leased. Los Angeles, among other Californian markets, also had the most expensive rental rates – amounting to about half of the
average asking square footage rent in Texas.
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