Midwest U.S. Industrial Figures Q4 2024

‒ In Q4 the Midwest industrial market continued to see new construction activity, positive occupancy growth, and sustained low vacancy despite inventory growth.
‒ Q4 2024 net absorption was 5.7 million sq. ft. showing continued growth.
‒ The Midwest continued steady construction activity in Q4 with 37.9 million sq. ft. underway. 66.0% of current construction underway is already leased. 7.1 million sq. ft. delivered in Q4 2024.
‒ Under construction activity increased by 3.1 million sq. ft. quarter-over-quarter as new projects broke ground.
‒ The Midwest markets posted 43.9 million sq. ft. of industrial leasing activity in Q4 2024, 64.7% of which was new leasing activity.
‒ Vacancy increased 60 basis points (bps) year-over-year, from 4.4% in Q4 2023 to 5.0% in Q4 2024. Low-prelease rates in completed spec buildings contributed to the vacancy rise. While vacancy is no longer at a record low, it remains very healthy.