Industrial Vacancy Rates – Small Buildings vs. Large Buildings

On the surface, industrial vacancy rates are up +/-200 bps, broadly, since lows in 2022.  However, there is a growing dichotomy between the availability of small and large buildings. New construction deliveries, mostly larger buildings, are causing vacancy rates to grow. Yet, smaller industrial property availability remains tight.  This graph shows the gap between availability […]

The Story of Constrained Industrial Real Estate Supply In Two Visuals

The story of constrained industrial real estate supply (under 100,000 sf) told by two excellent visuals.  Continued healthy demand and limited new supply create an opportunity to drive future rent growth, specifically for industrial properties under 100,000 sf.  Chart 1 shows the dramatic focus of new construction on larger properties. 0 % of total current […]

Same Story, Different Market – Industrial Real Estate Nationwide Shares Common Themes

Same Story, Different Market. RE Journals recently discussed Twin Cities market trends post-COVID.  In various industrial markets nationwide, we are seeing this familiar narrative. Despite differing local markets, the underlying fundamentals remain consistent.  Demand remains healthy. Though current tenant demand has dipped, this is due to abnormal market forces in 2021/2022. Demand is still stronger […]