Americas Industrial Construction Cost Guide 2024

INDUSTRIAL CONSTRUCTION COST GUIDE 2024

NATIONAL AND MARKET VACANCY RATES

Industrial vacancy rates in the Americas have been persistently low over the last three years. However, slowing demand, coupled with healthy speculative delivery totals, is beginning to result in rising vacancy rates in some markets. Across most U.S. markets, vacancy rates have risen above their recent 10-year lows. The U.S. overall industrial vacancy rate ticked up 60 basis points (bps) in the first quarter of 2024 to 5.8%. The Canadian overall industrial vacancy rate also increased 60 bps to 2.7% in the fourth quarter of 2023. The LATAM vacancy rate saw a slight decline on a YOY basis, ending 2023 at 7.9%, down 10 bps. Mexican industrial markets have the lowest vacancy rates, which reflects the nearshoring effect.

KEY TAKEAWAY

Softening in some markets has pushed vacancy rates above their recent 10-year lows. As the construction pipeline slows down over the next few years, expect vacancy to tighten in many Americas markets.

VACANCY RATES HAVE TICKED UP ABOVE PREVIOUS LOWS SELECT MARKETS

0% 1% 2% 3% 4% 5% 6% 7% 8%

St.…

Tulsa

New Haven Hartford Miami

Tampa

Detroit

Buffalo

Omaha

Rochester Tucson

Calgary

Kansas City Orlando

Chicago

Minneapolis Portland

Roanoke

San Jose

Syracuse

Cleveland

Pittsburgh

Milwaukee

Providence

Binghamton

Northern VA

Southern New…

Ft. Lauderdale

Fredericksburg

Colorado Springs

Mexico City, Mexico Monterrey, Mexico

Fort Myers/Naples

NY Outer Boroughs

San Francisco Peninsula Q1 2024 10 Year Low (2014-2023)

*Mexico as of Q4 2023 Source: Cushman & Wakefield Research

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