In its latest U.S. industrial market report, CommercialEdge research shows that while some markets continue to lead the nation in office rent growth, non-coastal Sunbelt cities are also seeing notable increases.
By Quinn Purcell, Managing Editor
Nov. 4, 2024
2 min read
Photo by 500photos from Pexels
Major companies weren't shying away from requiring workers to return to office full- or part-time in 2024. Despite such mandates, the utilization of office spaces nation-wide remained unchanged, and vacany rates continued to rise.
That is according to the latest U.S. industrial report by CommercialEdge, a commercial real estate software designed by Yardi Systems. The report finds that the national vacancy rate for office buildings is up 170 basis points year-over-year (YOY) at 19.5 percent.
The national average in-place rent for industrial space in September 2024 was $8.16 per-sf, up 7.1% YOY.
The average rate for new leases signed in the last 12 months was $10.36 per-sf, $2.20 more than the average in-place rents.
362.6 million sf of industrial space is under construction, while 283.1 million sf was completed so far this year.
Industrial transactions totaled $43.7 billion year to date, with an average sale price of $130 per-sf.
States that had office occupancy rates above the national average include Florida (53.2%), Texas (54.7%), and Illinois (56.1%), while Washington, D.C. (36.6%), New York (47.2%), California (49.2%), and Pennsylvania (47.8%) all fell below.
