Real Estate

Savills' Q4 2024 U.S. Industrial Market Report highlights key trends:

Supply Chain Adjustments: Companies are proactively adapting to potential tariffs by adjusting supply chains and considering price changes.

Market Divergence: While some regions are stabilizing, others face increased vacancies, particularly in Class A spaces between 200,000 and 750,000 square feet.

Sublease Space Dynamics: In 2024, 59.1 million square feet of sublease space was added, with large blocks being absorbed in an average of 11 months, often by third-party logistics providers.

Construction Pipeline: The pipeline has decreased by 56.6% from its 2022 peak, stabilizing at pre-COVID levels.

Savills' Q4 2024 Life Sciences Market Report reveals key trends across major U.S. hubs:

San Francisco Bay Area: Vacancy rates increased by 50 basis points over the past year to 28.7%, driven by 3.2 million square feet of new inventory outpacing sluggish demand.

Boston-Cambridge: Overall vacancy rose 770 basis points year-over-year to 19.8%, with direct vacancy rates climbing to 13.5% as sublease supply expires.

San Diego: Overall vacancy rates have risen 440 basis points to 17.9%, while the construction pipeline has shrunk to 4.5 million square feet.

Savills' Q4 2024 Denver Industrial Market Report highlights key trends:

Net Absorption: Recorded 0.5 million square feet in Q4, totaling 2.4 million square feet for the year.

Vacancy Rates: Increased by 90 basis points this quarter and 270 basis points year-over-year, indicating a rise in available space.

Asking Rental Rates: Experienced a decline, reflecting adjustments in the market dynamics.

Savills' Q4 2024 Austin Industrial Market Report highlights key trends:

Vacancy Rates: Increased by 170 basis points year-over-year, reaching 11.6%, due to 11.5 million square feet of new deliveries in 2024.

Asking Rental Rates: Decreased by 2.4% over the past year, averaging $11.68 per square foot as of Q4 2024.

Net Absorption: Softened in Q4 2024 but is expected to rebound, with overall positive absorption for the year.

Savills' Q4 2024 Boston Industrial Market Report highlights key trends:

Vacancy Rates: Increased by 90 basis points this quarter and 270 basis points year-over-year, with no signs of slowing.

Development Activity: The under-construction pipeline decreased by 2.8 million square feet compared to last year, indicating a slowdown as new space remains available.

Tenant Behavior: Despite new deliveries, many occupiers are choosing to renew leases at their current locations.

For a comprehensive analysis, read the full report here: 

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The Tampa Bay industrial real estate market experienced a notable shift in Q4 2024, with the vacancy rate increasing by 100 basis points year-over-year, reaching 7.3%. This rise is attributed to a surge in new supply entering the market.

In Q4 2024, Northern Virginia's office market saw significant activity, with seven of the top ten transactions being renewals by government entities and federal contractors. Notable deals included SAIC's 241,284-square-foot renewal in the Route 28/Chantilly submarket and Zeta Associates' 210,190-square-foot renewal in Fairfax/Oakton/Vienna. Overall leasing activity for the year totaled 8.3 million square feet, marking a 24.3% increase from 2023. 

Q4 2024, Nashville's office market saw availability rise to 22.8%, up 340 basis points year-over-year, offering tenants ample space options. Leasing activity remained strong, totaling 3.0 million square feet for the year, a 0.3 million square foot increase from 2023. Average asking rents reached $36.34 per square foot, with further increases anticipated as new premium office spaces are set to deliver in 2025.

In Q4 2024, the Seattle/Puget Sound industrial market maintained steady leasing activity, highlighted by Regalo International's 337,500-square-foot lease. This underscores the region's ongoing appeal to industrial tenants.

In Q4 2024, Philadelphia's industrial market experienced a 50 basis point increase in vacancy rates, reaching 8.9%, primarily due to new construction deliveries. Despite this, the market remains robust, with ongoing developments indicating sustained growth.

In Q4 2024, Detroit's industrial market showed signs of moderation, with vacancy rates rising slightly to 4.9%, reflecting a softening in demand. However, the outlook for 2025 is optimistic, with expectations of a resurgence in activity. 

In Q4 2024, Salt Lake Metro's office market achieved a significant milestone, with leasing activity reaching 1.1 million square feet—the highest quarterly level since 2016. This surge underscores the region's growing appeal to businesses and investors alike.

In Q4 2024, Phoenix's office market recorded 1.0 million square feet of leasing activity, bringing the annual total to 5.5 million square feet. This reflects a slight decrease from the previous year, indicating a stabilization in demand. Notably, the technology and healthcare sectors continue to drive significant leasing activity in the region.

In Q4 2024, Northern New Jersey's office market experienced a slowdown, with leasing activity totaling 7.7 million square feet for the year—a 3.1% decrease from 2023. Despite this dip, the annual figure remains above the five-year average, indicating sustained demand. Notably, the Waterfront submarket captured a record 34.1% of leasing volume, highlighting its growing appeal.

In Q4 2024, Austin's office market demonstrated resilience with 1.2 million square feet of leasing activity, bringing the annual total to over 4.4 million square feet—an 18.7% increase from 2023. Notable transactions include Action Behavior Centers leasing 93,000 square feet and the U.S. Money Reserve securing 59,000 square feet. Despite this robust demand, availability remains elevated at 28.0%, with over 2.0 million square feet still under construction. 

In Q4 2024, Denver's office market exhibited signs of stabilization:

Leasing Activity: The second half of 2024 saw a resurgence in leasing, indicating growing business confidence.

Availability Rate: Despite increased leasing, availability remained elevated, reflecting ongoing market adjustments.

These trends suggest a market in transition, balancing renewed demand with existing supply.

In Q4 2024, Denver's office market experienced a notable shift:

Leasing Activity: The second half of 2024 saw a resurgence in leasing, indicating growing business confidence.

Availability Rate: Despite increased leasing, availability remained elevated, reflecting ongoing market adjustments.

These trends suggest a market in transition, balancing renewed demand with existing supply.