Rents for industrial real estate in the U.S. have increased since 2017, with flexible/service space reaching the highest price per square foot in 2024. In just a year, the cost of, flex/service space rose by nearly *****U.S. dollars per square foot. Manufacturing facilities, warehouses, and distribution centers had lower rents and experienced milder growth. Los Angeles, Orange County, and Inland Empire, California, are some of the most expensive markets in the country. Office real estate is pricier Industrial real estate is far from being the most expensive commercial property type. For instance, average rental rates in major U.S. metros for office space are much higher than those for industrial space. This is most likely because office units are generally located in urban areas where there is limited space and thus higher demand, whereas industrial units are more suited to the outskirts of such urban areas. Industrial units, such as warehouses or factories, require much more space because they need to house large, heavy equipment or serve as a storage unit for future shipments. Big-box distribution space is gaining in importance Warehouses and distribution may currently command the lowest average rent per square foot among industrial space types, but the growing popularity of the asset class has earned it considerable gains over the past years. In 2021 and 2022, high occupier demand and insufficient supply led to soaring taking rent of big-box buildings. During that time, the vacancy rate of distribution centers fell below ****percent. The development of industrial and logistics facilities has accelerated since then, with the new supply coming to market, causing the vacancy rate to increase and the pressures on rent to ease.

The average rent for warehouses and distribution centers in Cleveland, Ohio, soared in 2023. In the first quarter of 2024, the average rent amounted to 4.57 U.S. dollars per square foot. Despite the increase, that was significantly lower than the average warehouse rent in the United States.

The average rent for warehouse space in Detroit, Michigan, experienced an overall rise between 2017 and 2024, despite some fluctuations. In the first quarter of 2024, rents peaked, reaching 6.66 U.S. dollars per square foot. Detroit is among the markets with the most industrial and logistic real estate inventory in the United States.

The average rent for warehouse distribution use in the Chicago area experienced a significant increase between 2017 and the first quarter of 2024. It increased from 5.13 U.S. dollars in 2017 per square foot to 7.27 U.S. dollars in the first quarter of 2024. That was slightly lower than the average warehouse rent in the United States.

The average rent for warehouses and distribution centers in the San Francisco Bay Area, California, has increased year-on-years since 2017. In the first quarter of 2024, the average rent amounted to 16.52 U.S. dollars per square foot. That was significantly higher than the average warehouse rent in the United States.

In the last quarter of 2024, Portland was one of the U.S. cities with the most expensive average construction cost for industrial warehouses. Constructing a warehouse in that city could have a cost that ranged between *** and *** U.S. dollars per square foot. It was followed by Honolulu and San Francisco, although at some distance. Meanwhile, Las Vegas and Phoenix were the least expensive cities to build warehouses. The most expensive U.S. cities to construct residential buildings were New York, Honolulu and San Francisco.

The average rent for warehouse space in Houston, Texas, experienced an overall rise between 2017 and 2024. In the first quarter of 2024, the average rents peaked at 9.55 U.S. dollars per square foot. In the U.S., Houston had the sixth largest logistics real estate inventory.

The average rent for warehouse distribution purposes in the Dallas-Fort Worth region experienced a significant rise between 2017 and 2024. By the first quarter of 2024, rents had doubled, reaching 8.86 U.S. dollars per square foot. In 2007, this figure amounted to 4.41 U.S. dollars per square foot. In the U.S., Dallas-Fort Worth is one of the markets with the most industrial and logistics real estate inventory.

The average rent for warehouse space in Atlanta, Georgia, experienced a significant rise between 2017 and 2024. By the first quarter of 2024, rents had more than doubled, reaching 8.48 U.S. dollars per square foot. In 2017, this figure was 3.94 U.S. dollars per square foot. In the U.S., Atlanta is one of the markets with the most industrial and logistics real estate inventory.

The average rent for warehouses and distribution centers in Phoenix, Arizona, has increased year-on-year since 2018. In the first quarter of 2024, the average rent amounted to 12.72 U.S. dollars per square foot. That was above the average warehouse rent in the United States.

The average annual rent for warehouses and distribution centers in the Greater Los Angeles area declined in 2023, after peaking in 2022. In the first quarter of 2024, the average rent amounted to 18.36 U.S. dollars per square foot. In the U.S., Greater Los Angeles is the market with the largest warehouse inventory.

The average rent for warehouses and distribution centers in South Florida declined slightly in 2024, after peaking in 2023. In the first quarter of 2024, the average rent amounted to 16.62 U.S. dollars per square foot. That was higher than the average warehouse rent in the United States.

The prime rent for large warehouses over 100,000 square feet in the UK was 11 British pounds per square foot in 2023. However, in London, the South East, and East, rents were twice higher. Conversely, the North East was the region with the most affordable warehouse rent, with the prime rent per square foot amounting to 7.75 British pounds. What is the rental price for warehouses in Europe? The UK has some of the most expensive warehouse rents in Europe. Other key markets that fetched high prices were Oslo, Helsinki, Dublin, and Munich, with rents ranging between 100 and 200 euros per square meter. In Eastern Europe, prices were notably lower, with markets such as Katowice, Warsaw, and Bucharest, reporting rents below 60 euros per square meter. How are warehouse rents expected to develop in the next years? The industrial and logistics real estate sector has grown dramatically since the COVID-19 pandemic. Although growth is forecast to slow, rents in the sector are expected to continue to increase until 2025. Industrial real estate is anticipated to outperform offices and retail not only by rental growth but also in terms of capital value increase.

The average rent for warehouses and distribution centers in Indianapolis, Indiana, declined slightly in 2024, after peaking in 2023. In the first quarter of 2024, the average rent amounted to 6.1 U.S. dollars per square foot. That was significantly lower than the average warehouse rent in the United States.

After peaking in 2023, the average rent for industrial real estate for warehouse distribution use in New York City Metro declined. In the first quarter of 2024, the average rent was 17.01 U.S. dollars per square foot. Despite the decrease, this was notably higher than 2017, when it amounted to 7.79 U.S. dollars. New York City Metro is one of the leading markets in the U.S. in terms of industrial and logistic state inventory.

The average rent for warehouses and distribution centers in Minneapolis-St. Paul, Minnesota, has increased year-on-year since 2017. In the first quarter of 2024, the average rent reached 7.49 U.S. dollars per square foot. That was significantly below than the average warehouse rent in the United States.

The average rent for warehouses and distribution centers in Philadelphia, Pennsylvania, declined slightly in 2024, after peaking in 2022. In the first quarter of 2024, the average rent amounted to 4.22 U.S. dollars per square foot. That was higher than the average warehouse rent in the United States.

The average rent for warehouses and distribution centers in Memphis, Tennessee, declined slightly in 2024, after peaking in 2022. In the first quarter of 2024, the average rent amounted to 4.22 U.S. dollars per square foot. That was significantly lower than the average warehouse rent in the United States.

The cost of 'big shed' prime industrial warehouse space per square foot in varied greatly across different cities in the United Kingdom (UK) as of January 2022. The most expensive market was Greenford, London, at 25 British pounds per square foot, while the least expensive was Teesside, Northern Ireland, at 5.95 British pounds. Furthermore, the price per square foot of larger (100+ thousand square foot) industrial warehousing was less expensive that that of smaller warehousing. Other factors that could affect pricing included location, proximity to major road systems, key population areas, price of developing land and staff costs.

This statistic shows the rental prices per square foot for warehouses in Kenya from 2013 to 2017. In 2017, the average rent per square foot of warehouse space in Kenya was 44.6 Kenyan shillings, which was approximately 44 U.S. cents as of October 2018.