3RD QUARTER CRE UPDATE; PERFORMANCE TRENDS TO WATCH
Industrial Demand Positive For More Than A Decade
- Rent Growth of nearly 10% in the last 12-months highlights the sectors rise as an investment vehicle
- Construction is at record levels in 2023, but much of this new supply will be in the top industrial demand markets
Supply Pressure Impacting Apartment Vacancy
- Record construction levels in the sector have contributed to rising vacancy, but rent growth remains positive thus far
- New construction pressure should begin to abate in 2025
Self-Storage Effective Rents Stable Despite Vacancy Uptick
- Street rates are falling, but its important to track existing costumer rents, which remain stable
- Vacancy has risen in recent quarters – outlook will be dependent on economy and development pipeline
- A wave of storage development is in the pipeline, but much of the new additions may be shelved while debt capital and construction costs are elevated
Sources: Marcus & Millichap Research Services
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