TAG Industrial Watch: October 12, 2024

The third quarter is now in the books and the industrial real estate storyline that began in 2023 continues. While net deliveries within the nation’s top 50 metros (minimum 10,000 square feet) slipped to the lowest level since Q1 2019 at 63.2 million square feet, supply still outpaced demand for the ninth consecutive quarter. After rebounding in Q2, net absorption slowed down in the quarter and was down 16.6% year-over-year to 34.6 million square feet, helping to push the vacancy rate to a fresh 10-year high of 6.7%. As well documented by TAG Industrial since the beginning of last year, the divergence between big-box vacancies (8.6%) and small industrial vacancies (4.1%) steadied at 450 basis points. With demand for small industrial and mid-size space both contracting, all of the positive net absorption in Q3 was the result of big-box demand. Across the entire industrial market, rents flatlined at about $11.60 per square foot during Q3 and annual rent growth slipped to 3.2%, representing the lowest level in 11 years (CoStar). Next week, we’ll take a look at how the industrial market performed in the major markets covered by TAG Industrial.

I N D U S T R I A L   N E W S

Industrial Construction Continues
Its Plummet As Vacancy Rises
GlobeSt.com – October 7, 2024
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Industrial On Pace To Absorb
More Than 100M SF This Year
GlobeSt.com – October 9, 2024
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Job Cuts Flat In September 2024
From August; YTD Surpasses 2023
Challenger, Gray, & Christmas, Inc. – October 3, 2024
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US Bankruptcies YTD Near Pandemic
High After 59 Filings In September
S&P Global – October 9, 2024
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Behind Today’s Stunning Jobs Report:
A Record Surge In Government Workers
ZeroHedge – October 5, 2024
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R E G I O N A L   N E W S

Houston’s Industrial Sector Expanding
Connect CRE – September 30, 2024
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Sealy Signs 1.6 MSF Renewal Near St. Louis
Commercial Property Executive – October 10, 2024
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Here Are The Top Landlord And
Tenant-Friendly Industrial Markets
GlobeSt.com – October 10, 2024
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Another Million-Square-Foot Industrial
Building Planned For Alliance
Fort Worth Report – October 8, 2024
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IRG Acquires Key Fort Worth
Industrial Property With Heavy Power
PR Newswire – October 8, 2024
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