This has been a stellar year for industrial real estate. And the latest report from CommercialEdge provides yet more evidence that this asset class should remain a darling of investors in the coming months.
According to CommercialEdge’s November 2021 industrial report, the national average rent for industrial space rose to $6.37 a square foot in October. That’s up 3.9 percent from where this figure stood one year earlier.
Even more impressive? Year-to-date investment sales in the industrial space topped $51 billion as of the end of October. That outpaces the total deal volume that this market recorded during 2020.
Expect more industrial space to hit the market, too. CommercialEdge reported that nearly 523 million square feet of industrial space is now in this sector’s supply pipeline.
The only negative news in the report? It mostly centered on the Midwest, with CommercialEdge reporting that rent increases were fairly sluggish in the industrial sector in many major Midwest markets.
Kansas City industrial rates actually slipping .2 percent this October when compared with a year ago, while St. Louis rents inched up just 1.2 percent.
In better news for the region, CommercialEdge reported that two Midwest markets saw especially low vacancy rates as of the end of October. The industrial vacancy rate stood at a low 1.9 percent in Columbus as of the end of October and 2.8 percent in Nashville.
