Industrial Investment Guide

The industrial sector has remained steady throughout the first two quarters of the year, despite macroeconomic uncertainties such as maturing loans, stricter loan underwriting, and a decline in import volumes. While the pace of development starts may be decreasing, it is essential to note that this slowdown is compared to the exceptional growth observed in recent years. Looking at historical trends, the construction pipeline remains significant. With that in mind, new supply entering the market is still expected to increase the national vacancy rate in 2023, while rent growth has slowed from the three percent peak in H2 2022. The rent growth rate will slow down even more in H2 2023 because of the record amount of new supply about to hit the market. In this guide, Matthews™ takes a look at U.S. industrial data, including rent growth, vacancy rates, and rents across major markets across the nation. The guide also states the top-performing industrial markets and how changing consumer preferences are impacting the sector.