In this episode, hosts Bill Condon and Matt McGregor review Q3 market trends, covering key topics like vacancy rates, lease deals, and industrial space absorption.
Key Highlights:
- Vacancy Rates:
- Vacancy increased from 7.5% to 7.8%, as predicted. Expected to reach around 8% by year-end due to new product deliveries.
- Specific size ranges: 10-25K sq. ft. spaces remain tight with low vacancy, but the 100-200K range continues to struggle with over 10% vacancy.
- Pickleball's Impact:
- Pickleball facilities are emerging as a new trend in industrial spaces, with several large deals happening in Seattle.
- Major Lease Deals:
- Boeing signed a lease for 1M sq. ft. in Milton.
- Investment sales have picked up, with user sales slightly outpacing investor sales.
- Capital Markets & Sales:
- Nearly $870M in total sales year-to-date, with 45 transactions. User sales lead at 51%, but investors are making a comeback.
Outlook for Q4:
- Investment sales are expected to remain strong, though slightly affected by election year uncertainties. The market is expected to close out 2024 flat, with potential for positive momentum into 2025.
Tune in for the full breakdown of Q3 and what to expect next quarter!
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