{"id":3703,"date":"2024-10-10T04:44:12","date_gmt":"2024-10-10T04:44:12","guid":{"rendered":"https:\/\/www.commercialsearch.com\/blog\/?p=3703"},"modified":"2025-11-12T12:05:28","modified_gmt":"2025-11-12T12:05:28","slug":"industrial-starts-on-track-to-match-2019-levels-remain-strong-in-2024","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/blog\/industrial-starts-on-track-to-match-2019-levels-remain-strong-in-2024\/","title":{"rendered":"Industrial Starts on Track for 2019 Levels, Sales Set to Surpass 2023"},"content":{"rendered":"

According to the recent CommercialCafe national industrial report<\/a>, ground has been broken on 145.3 million square feet of industrial space so far in 2024, putting this year on track to match the 195.8 million square feet recorded in 2019. Although this marks a slowdown from the pandemic-driven boom that saw nearly 1.9 billion square feet of space under construction from 2020 to 2023, the current numbers remain consistent with pre-pandemic levels.<\/p>\n

Notably, Phoenix<\/a> leads the nation with 36.77 million square feet of industrial space under construction \u2014 more than double the amount underway in Dallas<\/a> at 16.01 million square feet. Philadelphia follows with 12.38 million square feet, while Kansas City, Mo., leads the Midwest with 10.42 million square feet, just ahead of Chicago\u2019s 10.28 million square feet.<\/p>\n

Strong Sales Activity Despite Market Adjustments<\/h2>\n

Industrial real estate sales in 2024 are on track to match or exceed last year\u2019s performance with $36.9 billion in transactions recorded through August. In particular, sales activity has been especially robust in 18 of the 120 markets tracked by CommercialCafe with these markets already surpassing their 2023 totals. However, it\u2019s important to note that sales data often lags behind current market activity. Meanwhile, recent rate cuts by the Federal Reserve may provide a further boost to capital markets.<\/p>\n

Among the top-performing markets, Dallas leads with $2.95 billion in sales through the end of August to surpass the Bay Area\u2019s $2.7 billion. Properties in Dallas traded at $138 per square foot, which is slightly above the national average of $132, but still lower than prices seen in Western markets. One standout transaction in Dallas was the acquisition of a 481,000-square-foot, Class A logistics campus at McKinney National Business Park \u2014 a fully leased development that was completed less than two years ago.<\/p>\n

Other high-performing markets include Los Angeles<\/a> with $2.059 billion in sales, Chicago<\/a> at $1.8 billion and Phoenix rounding out the top five with $1.6 billion in transactions. Southern, Western and Midwestern markets dominate the top five, while New Jersey ranks highest in the Northeast with $1.3 billion in sales activity through August.<\/p>\n

Coastal Markets Lead in Rent Growth<\/h2>\n

In-place rents for industrial space have increased significantly throughout the last 12 months, particularly in coastal regions. For instance, the Inland Empire in California leads the nation with a 12% rent increase, followed by Miami<\/a> at 10.6%, Los Angeles at 10.1%, New Jersey at 9% and Orange County at 8.3%. Nationally, industrial rents averaged $8.11 per square foot in August, which is a slight dip from July, but up 7.2% year-over-year.<\/p>\n

However, the national vacancy rate is climbing: It\u2019s up 30 basis points from the previous month as the market adjusts to the wave of new supply delivered in recent years. This increase follows a period of historically low vacancy rates that hovered around 4% just two years ago.<\/p>\n\n\n\n\n\t\n\t\n\t\n\t\n\t\n\t
Industrial properties in Dallas<\/a><\/td>Industrial properties in Columbus<\/a><\/td>Industrial properties in Nashville<\/a><\/td>\n<\/tr>\n
Industrial properties in Phoenix<\/a><\/td>Industrial properties in Denver<\/a><\/td>Industrial properties in Baltimore City<\/a><\/td>\n<\/tr>\n
Industrial properties in Chicago<\/a><\/td>Industrial properties in Seattle<\/a><\/td>Industrial properties in Los Angeles<\/a><\/td>\n<\/tr>\n
Industrial properties in Houston<\/a><\/td>Industrial properties in Atlanta<\/a><\/td>Industrial properties in Cleveland<\/a><\/td>\n<\/tr>\n
Industrial properties in Philadelphia<\/a><\/td>Industrial properties in Cincinnati<\/a><\/td>Industrial properties in Portland<\/a><\/td>\n<\/tr>\n
Industrial properties in Indianapolis<\/a><\/td>Industrial properties in Boston<\/a><\/td>Industrial properties in Charlotte<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n","protected":false},"excerpt":{"rendered":"

According to the recent CommercialCafe national industrial report, ground has been broken on 145.3 million square feet of industrial space so far in 2024, putting this year on track to match the 195.8 million square feet recorded in 2019. Although this marks a slowdown from the pandemic-driven boom that saw nearly 1.9 billion square feet of space under construction from 2020 to 2023, the current numbers remain consistent with pre-pandemic levels. Notably, Phoenix leads the nation with 36.77 million square feet of industrial space under construction \u2014 more than double the amount underway in Dallas at 16.01 million square feet….<\/p>\n","protected":false},"author":3163,"featured_media":3705,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-real-estate-reports"],"acf":[],"yoast_head":"\nIndustrial Construction in 2024 on Track to Reach 2019 Levels Amid Strong Sales<\/title>\n<meta name=\"description\" content=\"With $36.9 billion in sales recorded through August, select markets are surpassing 2023 totals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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