Tampabay / February 3, 2025
U.S. National Market Report | Q4 2024
Despite potential headwinds such as new tariffs on imports and geopolitical risks, the U.S. industrial market is poised for growth in 2025. As the construction pipeline continues to thin out and as speculative deliveries slow, vacancy rates should stabilize, likely peaking in should stabilize, likely peaking in slipping downward to the mid-6% range by year-end and continuing to inch lower.
Check out the full report below presented by Cushman and Wakefield.
Highlights:
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- Industrial Supply
- Vacancy Rate |6.7% : The overall vacancy rate ticked up by 20 basis points (bps) in the fourth quarter to 6.7%. This was the smallest quarterly increase since the market cooldown began in late 2022—a sign that the market may approach peak vacancy soon. Cushman & Wakefield Research recording rates below 6.0% at year-end.
- Under Construction |290.5 M : Construction deliveries decelerated for the second consecutive quarter, with 85.3 msf of new supply added in the fourth quarter—the softest quarter for deliveries since the second quarter of 2021. Over 425 msf of industrial facilities were completed in 2024, 78% of which were speculative, driving vacancy rates higher in many markets.
- Industrial Demand
- Net Absorption |36.8 M : Net absorption totaled 36.8 million square feet (msf) in the fourth quarter, up 10.5% quarter-over-quarter (QOQ). For 2024, 135 msf of industrial space was absorbed, on par with Cushman & Wakefield forecasts.
- Market Pricing
- Asking Rent | $10.13 PSF: The national average asking rent for industrial space rose by 0.9% QOQ to $10.13 per square foot (psf). Annual rent growth ticked marginally higher in the fourth quarter
to 4.5%, fueled by the South region’s 6.0% YOY increase. Some rent increases were tied to deliveries of vacant, speculative industrial product, priced at a premium over market averages. - Outlook
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- • Overall absorption is projected to increase to around 200 msf in 2025 as leasing picks up steam and tenant consolidations moderate. Tailwinds, such as e-commerce, strong consumer confidence, and nearshoring and onshoring should propel the marketplace, especially in the second half of the year and into 2026.
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- Asking Rent | $10.13 PSF: The national average asking rent for industrial space rose by 0.9% QOQ to $10.13 per square foot (psf). Annual rent growth ticked marginally higher in the fourth quarter
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- • Asking rent growth is anticipated to slow to just over 2% in 2025 and 2026 before risking back to the 3% range (growth will continue to be market dependent).
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- • As larger occupiers continue to seek new construction for more efficient operations, the smaller development pipeline will likely lead to supply constraints in some markets.
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- Industrial Supply
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View Cushman and Wakefield’s Historical Reports
Have questions about the report or looking for more information about the industrial market in Tampa Bay? Please reach out to the team!
John Jackson, SIOR, CCIM. | Managing Director
+1 813 424 3202 | John.Jackson@cushwake.com
JT Faircloth | Director
+1 813 833 3242 | Jt.Faircloth@cushwake.com
Casey Perry | Senior Associate
+1 813 233 6464 | Casey.G.Perry@cushwake.com
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