TAG Industrial Watch: January 25, 2025

 This week, we wrap up with how TAG’s major industrial markets performed in 2024. In the Windy City, the vacancy rate increased 50 basis points to 5.5% as new supply slowed to a decade’s low but demand fell to the lowest level since 2010. Despite availability remaining relatively tight, annual rent growth in Chicago decelerated from 6.8% to a decade’s low of 3.4%. Between Kansas City and Saint Louis, vacancies remained relatively stable, inching up just 10 basis points to 4.9% with new supply slightly exceeding demand. While net absorption in America’s Heartland did rise off its decade’s low posted in 2023, rent growth slowed by 150 basis points to 4.3%, remaining comfortably above the 2.9% increase in the Consumer Price Index. Up in the Mile High City, the vacancy rate bucked the national trend, slipping 20 basis points from the highest level in nearly 20 years down to 8.3%. However, the high level of availability in Denver helped push rent growth down 430 basis points down 1.1%, representing the lowest level since 2010. Lastly, the vacancy rate in Los Angeles reached a new record high, rising 190 basis points to 6.2% due to net absorption contracting for the third year in a row. The decline in demand for industrial space in the City of Angels caused rent growth to decelerate from 4.9% to a new low of -5.1% (CoStar, minimum 10,000 square feet, Classes A, B, & C).

I N D U S T R I A L   N E W S

Industrial Tops CRE Investment
Picks For 2025, Expert Says
GlobeSt.com – January 10, 2025
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U.S. Retail Closures Up Almost 70% This Year
As Thousands Of Stores Prepare To Go Dark
Bisnow – December 17, 2024
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Ray Dalio Says Cutting Budget Deficit
Is Crucial To Stabilize The Bond Market
CNBC – January 21, 2025
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US Credit Card Defaults Soar
To Highest Level In 14 Years
Fox Business – December 30, 2025
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Major US Firms Demand Suppliers
Embrace “China + 1” Factory Strategy
ZeroHedge – January 21, 2025
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R E G I O N A L   N E W S

SL Industrial Partners Acquires
Chicago Light Industrial Portfolio
Connect CRE – January 20, 2025
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Alterra IOS Expands Dallas-Fort Worth Portfolio
Commercial Property Executive – January 17, 2024
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10 Industrial Markets With Investment Appeal
GlobeSt.com – January 7, 2025
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Vertical Cold Storage Opens New Kansas City Facility
Businesswire – January 7, 2025
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$61 Million Refrigerator: Large Cold-Storage
Plant Coming To North Texas City
WFAA – January 14, 2025
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