TAG Industrial Watch: January 18, 2025
In this week’s issue of the Industrial Watch, we’ll begin checking out how TAG’s top markets performed in 2024, starting with Texas. The Dallas-Fort Worth metroplex experienced a 150-basis-point increase in vacancies to 9.8%, reaching the highest level since 2010. Despite new supply slowing considerably, net deliveries outpaced net absorption again as demand posted the lowest level in a decade. Annual rent growth dropped by 400 basis points to 4.5% but remained well above the national average. Moving down to Houston, the oil refining capital of the U.S. was one of the few markets that experienced a reduction in vacancy rates with availability inching 20 basis points down to 6.6%. While demand essentially matched new supply, rent growth decelerated from 4.9% to 1.0%.
Between San Antonio and Austin, demand slowed slightly but again was surpassed by new supplies, increasing the vacancy rate by 190 basis points to 10.2%, representing the highest level since full market coverage began in 2005. Among the major markets in Texas, San Antonio and Austin were the first to experience negative rent growth as leasing rates dipped by 20 basis points. Along the border in Laredo, supply quadrupled demand which cooled considerably, as speculative developers sought to take advantage of the nearshoring movement. Consequently, the vacancy rate jumped 390 basis points to a record high of 6.1% and rent growth slowed 460 basis points to 1.8% (CoStar, classes A, B, & C, and minimum 10,000 square feet).
I N D U S T R I A L N E W S
Trump Tariffs? Logistics Companies
Stand On Their Nearshoring Bets
GlobeSt.com – January 7, 2025
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CRE Lending Picks Up The Pace
Commercial Property Executive – December 27, 2024
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Trump’s Plan For Mass Deportation
Could Have A Big Effect On Prices
CNBC – January 11, 2025
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New York Manufacturing Index Slides
Back Into Negative Territory In January
The Central New York Business Journal – January 15, 2025
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Janet Yellen Says COVID Spending May Have Contributed
‘Little Bit’ To Inflation In Rare Admission By Biden Official
New York Post – January 8, 2025
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R E G I O N A L N E W S
Stotan Building $100M Laredo Industrial Park
Connect CRE – January 9, 2025
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Trump’s China Tariff Threats Are Helping
Fuel A Manufacturing Boom — In Mexico
CNBC – January 15, 2025
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IDV, Standard Break Ground
On Houston Industrial Park
Commercial Property Executive – January 9, 2025
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Inland Empire: Tale Of Two Industrial Markets
GlobeSt.com – January 7, 2025
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Businesses Vacate Los Angeles
Industrial Buildings At A Record Pace
CoStar – December 23, 2024
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