U.S. Industrial Outlook 2024

The U.S. industrial market is expected to stabilize in 2024, with net absorption on par with 2023 levels and taking rent growth moderating to 8%. Construction deliveries will taper off by midyear and finish at half of 2023’s total. New deliveries in the early part of the year will cause the overall vacancy rate to rise to around the 10-year average of 5.0% before falling slightly in the second half of the year. New development will remain low for the foreseeable future due to tight lending conditions, economic uncertainty and an oversupply of large warehouse and distribution facilities in certain markets.