1、Page 1U.S.industrial market report|Q3 2024U.S.industrial market reportQ3 2024Page 2U.S.industrial market report|Q3 2024Industrial net absorption remained positive in the first three quarters of 2024 but continued to decline due to global economic,political,and financial headwinds,coupled with record

2、 levels of new construction completions.Peak deliveries have passed in every market nationally.Despite the recent 50 bps rate cut by the Federal Reserve,we shouldnt see any uptick in construction projects until 2025 at the earliest.The decline in deliveries is allowing markets to digest the excess s

3、pace that flooded the sector for five quarters.Overall leasing volume for the first three quarters of 2024 was lower compared to historical levels,however pre-leasing industrial demand remained active throughout the U.S.since this time last year.Election uncertainty and a lack of interest rate cuts

4、have led many tenants to pause decisions until the beginning of 2025.With the election now finished,clearer economic conditions and increasing occupier requirements are likely to translate to upticks in overall gross leasing activity in the start of 2025.New groundbreakings topped out in the third q

5、uarter of 2022,and very limited replacement activity has been observed in the construction pipeline in 2023 and in the first half of 2024.After topping out at nearly 700 million square feet(msf)in 2022,we expect the overall construction pipeline to fall to under 200 msf by the end of the year.We are

6、 closely monitoring the market impact that decreasing groundbreakings will have on new space availabilities in three to six months,as tenants looking for newly constructed space may have limited optionality relative to prior years.National vacancy rate upticks to highest point since 2012Gross leasin