Top 10 Markets for Industrial Transactions

Industrial real estate is preparing to enter a new stage of growth. Following the surge of development recorded in 2022 and 2023, U.S. industrial market trends are now shifting to a more tenant-favorable position. Last year, owners and investors have started to focus on extracting value from the vast amount of space available for redevelopment or renovation, leading to an increase in investment volume. The top metros for industrial transactions had a combined $23.3 billion in sales last year, up 12.2 percent since 2023.

1. Phoenix

Metro Phoenix recovered last year and retook its spot as one of the most sought-after and fast-growing industrial markets in the U.S. Investors traded $3.2 billion in industrial assets in 2024, up 78.2 percent year-over-year—one of the largest increases on this list. The market’s strength was also reflected in development activity, according to the latest CommercialEdge report.

A total of 205 industrial assets, encompassing 19.4 million square feet changed hands in the metro last year—68.3 percent more than 2023's total. Properties traded for an average of $167.1 per square foot in 2024, up by about $10 from the previous year’s figure. Class B assets traded at a premium, recording an average of $182.6 per square foot, while Class A properties clocked in at $156.4 per square foot.

In Phoenix’s largest single-asset industrial sale last year, funds and accounts managed by BlackRock acquired The Cubes at Glendale’s Building B for $128.1 million. CRG sold the 1.2 million-square-foot asset for roughly $106.7 per square foot. Amazon occupies the entire building.

2. Bay Area

The Bay Area's investment volume totaled slightly more than $3 billion in 2024, up 31.7 percent year-over-year. The market closed the year as the most expensive on this list, with the average price per square foot clocking in at $410.2, up $99 since 2023.

A total of 7.4 million square feet changed hands last year across 57 properties. This was virtually unchanged from the 64 properties and 7.4 million square feet recorded in 2023. Newly constructed, high-quality facilities are hard to come by in the Bay Area market, making Class A facilities particularly expensive—these traded for an average of $652.5 per square foot last year. More Class B properties changed hands than their high-quality counterparts, for an average of $259.6 per square foot.

The market’s largest transaction was the $79.5 million sale of Frontier Elm Business Center, in Fremont, Calif. Link Logistics completed the 209,916-square-foot asset last year and sold it to KKR. RK Logistics is the sole tenant, occupying the entire building.

3. Los Angeles

Los Angeles rounded out the top three markets for industrial transactions, with investors trading just over $3 billion in 2024. The metro was one of the few on this list where investment volume decreased since 2023, by $360 million. Furthermore, the average price per square foot dipped by roughly $8 year-over-year, to $293.6 for 2024’s sales.

Although port markets cooled off last year, demand was still healthy. Investors closed on 10.2 million square feet of industrial space last year in the metro, across 120 assets. This was just a slight decrease from the 11.1 million square feet and 123 properties that changed hands in 2023.

With limited space for new construction, investors heavily favored value-add deals. A total of 6.7 million square feet of Class B industrial space changed hands last year, significantly less than the 2.8 million square feet of Class A.

The largest transaction was the $137.2 million sale of a 298,474-square-foot building at 2501 W. Rosencrans Ave., in Compton, Calif. Rexford Industrial purchased it from JP Morgan Asset Management for $459.7 per square foot.

4. Chicago

Chicago ranked fourth among the top metros for industrial investment, with sales volume reaching just under $2.8 billion last year, 26.8 percent more than in 2023. The average price per square foot ticked up about $3 over the past year, to $92—the only metro on this list with a double-digit figure.

Chicago’s industrial market slowed down last year, but its established position as a major logistics hub means demand remained at healthy levels. The metro recorded the largest amount of industrial space changing hands among the markets on this list—more than 30 million square feet, which was about 5.5 million more than a year prior.

Stream Realty Partners, one of the most active investors in Chicago, closed on the largest transaction of the year. It purchased the 174,536-square-foot Rockwell Logistics Center for $33.5 million, or $191.9 per square foot. Westcore Properties sold the 2019-built asset.

5. New Jersey

The ports of New York and New Jersey account for more than a third of the trade activity in the North Atlantic, making industrial real estate a very desired asset type among investors. Still, sales volume decreased by about $300 million year-over-year, to just under $2.4 billion in 2024.

Investors traded 11.2 million square feet of industrial assets, about 1.2 million less than in 2023. A total of 122 single-asset transactions closed last year, 12 more than in 2023, which meant that on average, the buildings had a smaller footprint.

Goodman Group closed on the largest transaction in February 2024. The company paid $92 million for the 446,000-square-foot property at 125 Theodore Conrad Drive in Jersey City, N.J. The seller was the New York Daily News newspaper, which still uses it as its headquarters.

6. The Inland Empire

The Inland Empire ranked seventh among the top metros for industrial transactions in 2024. Activity in one of the largest markets in the U.S. has decreased significantly, however—a total of $2.3 billion traded last year, down 46.6 percent since 2023.

Investors purchased 74 assets last year, which encompassed some 8.8 million square feet, down to almost half from 2023’s 17.3 million total. The smaller sample size led to the average price per square foot rising to $260.3 for last year’s sales.

By far the largest transaction of the year occurred in April, when EQT Exeter purchased Commerce Way Distribution Center in Fontana, Calif., for $197 million. Manulife Investment Management sold the 819,004-quare-foot asset after it had owned it for more than 10 years.

7. Atlanta

Atlanta investors traded $2.3 billion in industrial properties in 2024, up by $382 million since 2023. Access to major thoroughfares, rail, the growing Port of Savannah and the broader Southeast region make Georgia’s capital an essential industrial market.

A total of 166 assets—21.9 million square feet—changed hands last year. The average price per square foot for Atlanta industrial space was $103.1, $12.8 less than 2023’s figure, when 16.2 million square feet traded. In the largest transaction last year, Cabot Properties acquired two buildings at Victory Landing Logistics Center in Mountain View, Ga., for a combined $49.8 million. OA Development sold the two assets, which measure 220,996 and 146,400 square feet, respectively.

Last year, Cabot Properties closed its $1.6 billion investment fund, which is focused on high-quality infill industrial properties. The investor is targeting several U.S. markets including Atlanta, Seattle and Chicago, among others.

8. Minneapolis - St. Paul

Sales volume in the Twin Cities reached $1.6 billion in 2024—about $600 million more than in 2023. This earned it the eighth spot among the top markets for industrial transactions, as manufacturing and e-commerce growth across the Midwest kept demand high, even as development slowed down since the 2022-2023 surge.

Of the total 14.2 million square feet that changed hands last year, 8 million were in Class A facilities and 6 million were in Class B assets, while the remaining 200,000 square feet were in Class C. The overall average price per square foot was $111.1 for last year’s sales, up by 17.2 percent since 2023.

Several large-scale deals closed last year across the metro. One of the largest was IRG’s acquisition of a 1 million-square-foot portfolio in St Cloud, Minn., from two separate buyers. The new owner plans to redevelop some of the assets.

9. Denver

Metro Denver clocked in at the ninth spot, with $1.5 billion changing hands last year. The market had one of the sharpest year-over-year increases, with the volume growing more than three times since 2023, when $485 million traded.

Denver investors acquired 11.2 million square feet across 127 assets last year. This amount of industrial product was also a significant increase from the 3.6 million square feet recorded in 2023. The average price per square foot did not budge much, however, at $138.1 for 2024’s sales.

In January last year, Hyde Development and Mortenson Properties acquired Peoria Business Center for $73.5 million, the largest transaction of 2024. Invesco sold the 592,572-square-foot property. At the time of the sale, the asset was 98 percent leased to 19 tenants.

10. Tampa, Fla.

The Tampa - St. Petersburg - Clearwater metro area rounded out the list of top markets for industrial transactions in 2024 with $1.2 billion in assets changing hands. This was a $424 million increase from the previous year, boosted by manufacturing and logistics growth.

In the largest transaction of 2024, Clarion Partners paid $55.6 million for Tampa Airport Logistics Center. PCCP LLC sold the two-building, 297,254-square-foot park, which was fully leased at the time. Cushman & Wakefield represented the seller.

A total of 9.6 million square feet—159 properties—of industrial assets changed hands across the metro area last year, up 26.3 percent year-over-year. Industrial space in Tampa traded at an average of $130 per square foot, a significant jump from the $107.1 figure recorded in 2023.