With record levels of new industrial space supply, vacancy rates are on the rise. However, the latest industrial report<\/a> from CommercialCafe reveals that sales prices are up due to one significant deal, while rent growth is highest in Miami.<\/p>\n The U.S. industrial market experienced a decline in both transaction numbers and total sales volume in Q1 2024. Even so, a single, massive biomanufacturing facility sale in the Bay Area skewed national averages to inflate the average sales price by more than 22% compared to Q4 2023.<\/p>\n Specifically, overall U.S. industrial property sales reached $10 billion in Q1 with an average price of $147 per square foot. But, this average was significantly inflated by the Bay Area\u2019s outlier deal, which accounted for 12% of national sales. Without this transaction, the national average sale price would have been $130 per square foot.<\/p>\n The Bay Area deal involved the $1.2 billion purchase of a biomanufacturing facility in Vacaville, Calif., by Lonza Group (formerly owned by Genentech). This single transaction, which commanded a hefty $2,810 per square foot, significantly pushed the Bay Area\u2019s year-to-date average sale price to $777. Meanwhile, fellow West Coast markets Orange County, Calif., and Los Angeles saw averages of $326 and $325 per square foot, respectively, but with lower overall sales volumes.<\/p>\n In total, industrial deals in the Bay Area amounted to $1.68 billion from January to March of this year. Dallas and Chicago followed by securing the second and third positions with $831 million and $585 million in industrial sales, respectively.<\/p>\n At the same time, the U.S. industrial market maintained its upward trend in rent prices. In March 2024, national in-place rents averaged $7.85 per square foot, reflecting a robust 7.3% year-over-year increase. Notably, new leases signed in the last year commanded a premium by averaging $10.43 per square foot.<\/p>\n However, the biggest story lies in Miami\u2019s rise: After two years of dominance by Inland Empire, Calif., Miami<\/a> took the top spot for the highest rent growth with an 11.9% year-over-year increase to narrowly surpass Inland Empire\u2019s 11.8% growth.<\/p>\n Not to be outdone, other Southern California markets also saw significant increases. Namely, Los Angeles and Orange County experienced gains of 11.2% and 10.8%, respectively, securing the third and fourth positions.<\/p>\n That said, Miami\u2019s dominance extends beyond growth rate: It currently holds the fourth-highest in-place rents in the U.S. at $11.28 per square foot. Only the pricier markets of Orange County, Calif., ($15.44), Los Angeles ($14.31) and the Bay Area ($13.10) boasted higher average rents.<\/p>\n Are you in need of industrial or warehouse space for rent? Choose any market from the list of locations linked below or visit the CommercialSearch<\/a> home page to begin your search!<\/p>\n\nSingle Bay Area Deal Inflates National Industrial Sales<\/h2>\n
Miami Takes Industrial Rent Growth Top Spot<\/h2>\n