Industrial and logistics real estate vacancy rate in the U.S. 2017-2023, per quarter
Vacancy rates for industrial and logistics real estate rose in 2023, which was the first time the sector experienced an increase in vacancy rates since early 2020. At 5.6 percent, the share of vacant space in the fourth quarter of 2023 was just 1.85 percent higher than the previous year. In some of the major industrial markets, the vacancy rate was below two percent.
E-commerce companies seek storage solutions
One reason why industrial buildings have remained in demand throughout the pandemic is the growth of online shopping. Extra warehousing space and distribution centers are ideal for e-commerce companies that have seen their sales surge as consumers avoid in-store shopping. Adversely, physical retail stores have felt the negative effect of this shift in consumer shopping habits.
Which are the largest U.S. industrial and logistics markets?
Home to the largest port complex in North America and a gateway for the trade between Asia and North America, Greater Los Angeles is the market with the most industrial and logistics real estate stock. Nevertheless, when considering demand, Dallas/Ft. Worth and Houston, Texas, topped the ranking with the most industrial and logistics real estate absorbed in 2022. Both Houston and Dallas/Ft. Worth possess a strategic location, proximity to the Gulf of Mexico, and a convenient connection to major East and West Coast markets.