1、Page 1U.S.industrial market report|Q4 2024U.S.industrial market reportQ4 2024Page 2U.S.industrial market report|Q4 2024Industrial net absorption remained positive in 2024 but continued to decline due to global economic,political,and financial headwinds,coupled with record levels of new construction

2、completions.Peak deliveries have passed in every market nationally.Despite recent rate cuts by the Federal Reserve,further cuts remain questionable for 2025 as increasing inflation continues to start the year.The decline in deliveries is allowing markets to digest the excess space that flooded the s

3、ector for five quarters.Overall leasing volume for 2024 was only slightly lower compared to historical levels,however pre-leasing activity such as touring and expansions requirements for industrial demand picked up following the U.S.national election.Election uncertainty,the East and Gulf Coast port

4、 worker strike,and a lack of interest rate cuts led many tenants to pause decisions until the beginning of 2025.With the election now finished,clearer economic conditions and increasing occupier requirements are likely to translate to upticks in overall gross leasing activity in the start of 2025.Ne

5、w groundbreakings topped out in the third quarter of 2022,and very limited replacement activity has been observed in the construction pipeline in 2023 and 2024.After topping out at nearly 700 million square feet(msf)in 2022,the overall construction pipeline to fell to under 250 msf by the end of 202

6、4.We are closely monitoring the market impact that decreasing groundbreakings will have on new space availabilities in three to six months,as tenants looking for newly constructed space may have limited optionality relative to prior years.national vacancy rate upticks to highest point since 2012gros