Understanding market dynamics is critical to successful lease negotiations
Guide
Navigating a shifting industrial real estate market
After an unprecedented surge in demand and rental costs, the industrial real estate market has entered a cooling period over the past 18 months. While availability increases and rent growth slows, companies facing lease expirations face complex decisions in a market showing varied signals—particularly those seeking to upgrade to higher-quality space in an environment where Class A properties remain highly competitive.
Key Points:
- Industrial vacancy rates are rising as new warehouse supply comes online, while new construction has significantly decreased
- Organizations are increasingly consolidating smaller facilities into modern, "future-proof" spaces with improved infrastructure and employee amenities
- Class A buildings continue to dominate leasing activity, reflecting the ongoing flight to quality
- While quoted lease rates may reflect pandemic-era pricing, market conditions are creating negotiation opportunities for well-informed occupiers
Download Our Industrial Market Intelligence Report Today to gain the insights needed to navigate this transitional market and secure industrial space that supports your long-term business objectives.