Industrial leasing was broadly stable in Q4 2024, with volumes higher than the previous quarter across all three regions. However, activity continued to decline over the full year as occupiers focus on increasing utilization of existing space and delay transactions amid uncertainty and high costs. Despite extended decision-making timelines, demand remains poised for further growth at more sustainable levels. Supply chains continue to evolve in conjunction with persistent e-commerce growth and increasing demand for last-mile facilities, which combined with an emphasis on nearshoring or diversifying manufacturing operations will underpin the sector’s long-term prospects.

Leasing volumes in North America were marginally higher during Q4 than the previous quarter but annual volumes fell by 27% compared with 2023. Take-up in Europe rose by 19% over the quarter, with full-year volumes 5% below 2023 and in line with 2019 levels. In Asia Pacific, 2024 marked a slowdown from the record levels of the previous year with absorption 13% lower.