TAG Industrial Watch: June 28, 2025
As a recent article by Globe Street alludes to, some smaller industrial markets that lagged in the development of big-box warehouses at the height of the industrial boom from 2021 to 2023, now enjoy lower vacancy rates and thus, higher rent growth. With operations in smaller markets in the Midwest, TAG Industrial has also become familiar with this new trend. For example, the national vacancy rate and annual rent growth currently stand at 7.6% and 1.8%, respectively (Costar, top 50 metros, minimum 10,000 square feet, classes A, B, & C). However, in TAG’s fastest-growing market, Saint Louis, the vacancy rate sat 340 basis points lower than the national average at 4.2%. Unlike the national trend, annual rent growth in Saint Louis actually reversed course in Q2, rising to 3.9%, which is twice the national level. With industrial vacancies breaching 12-year highs and rent growth decelerating into negative territory for the first time since 2010, smaller markets with big potential will continue to catch investors’ eyes.
I N D U S T R I A L N E W S
Smaller Industrial Markets Set To Outpace
Hubs In Rent Growth Through 2029
GlobeSt.com – June 16, 2025
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Chicago Industrial Developers
Thinking Small For Big Returns
Bisnow – March 17, 2025
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What Does Site Remediation
For Industrial Use Entail?
Commercial Property Executive – June 2, 2025
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Layoff Wave Hits Freight Sector
As Nearly 9,000 Jobs Slashed
FreightWaves – June 18, 2025
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No Love For U.S. Dollar As Markets
Fret About Fed Independence
The Globe And Mail – June 26, 2025
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R E G I O N A L N E W S
Foxconn Buys Houston Industrial
Park, To Invest $450M In Site
Connect CRE – June 6, 2025
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Shifting Inventory Needs And Tariff Concerns
Shape O’Hare Industrial Market At Mid-Year
REjournals – June 24, 2025
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Tremont Realty Capital Provides $28M Loan For
Refinancing Of San Antonio Industrial Building
REBusiness – June 26, 2025
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Investor Picks Up 775K SF Industrial Portfolio
In Hot Submarket: The DFW Deal Sheet
Bisnow – June 24, 2025
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Link Logistics Lands 300 KSF
Chicago-Area Lease Renewal
Commercial Property Executive – June 19, 2025
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