TAG Industrial Watch: January 4, 2025
As 2025 kicks off, it’s time for TAG’s predictions of how the market fundamentals will play out this year for industrial real estate. With government budget deficits continuing to put pressure on interest rates, new deliveries should recede again as generally expected. However, the market’s attention may turn from concerns of oversupply to falling demand. If net absorption for big-box space (which accounted for nearly all of the industrial’s positive absorption in 2024) slips further, overall industrial demand could contract into negative territory for the first time since 2009. Whether demand remains positive or not, annual rent growth, which has been in freefall since its historical peak in 2022, is on pace to contract for the first time since 2010. If inflation picks up in 2025, industrial investors will have to contend with high inflation and rising interest rates along with falling rents. With the industrial market entering stagflation, TAG expects investors to seek out a safe haven. This creates a great opportunity for investors to trade into specialized industrial facilities that will give them greater pricing power over rents in the future.
I N D U S T R I A L N E W S
Trends Influencing Industrial In 2025
GlobeSt.com – December 13, 2024
Read More
Industrial Report: Sector Settles After Supply Surge
Commercial Property Executive – December 30, 2024
Read More
Here Are Costar’s Top Industrial Stories Of 2024
CoStar – December 31, 2024
Read More
US Manufacturing Remains In Contraction In December
Baha Breaking News – January 2, 2025
Read More
Why Mortgage Rates Remain So High—
And What To Expect In 2025
CNBC – December 30, 2024
Read More
R E G I O N A L N E W S
Clear Height Properties, ICP Funds Acquire
Industrial Business Park In Addison
REjournals – December 17, 2024
Read More
Chicago’s Biggest Deals Of 2024
Reflect City’s ‘Innate Optimism’
Bisnow – December 20, 2024
Read More
VanTrust Breaks Ground On
526 KSF Kansas City Project
Commercial Property Executive – December 16, 2024
Read More
Rexford Aids US Industrial Rebound With
One Of 2024’s Priciest Los Angeles Deals
CoStar – December 30, 2024
Read More
Lilly Announces $3 Billion Expansion Of Its Recently
Acquired Manufacturing Facility In Wisconsin
PR Newswire – December 5, 2024
Read More