In this article, you’ll learn:

• The effect of recent leasing slowdowns on warehouse availability in 2024.
• How lower construction rates will influence warehouse supply and rent growth.
• Strategies for tenants to secure good deals amid rising competition and rents.

The warehouse industry is booming with interest, overshadowing its far less popular sister, office space. As if the divide in demand couldn’t get any worse, in May, the annualized monthly rate for new manufacturing facilities reached record-breaking levels ($194 billion), doubling in the two years since 2021.
Competition for industrial space has been tight as tenants clamor for the best space. Of course, developers have been racing to satisfy the demand with a robust construction pipeline.
But production may finally be catching up. Earlier this year a slight dip in leasing volume put construction at hold until the market absorbs the space. Now, warehouse tenants may find themselves in a sweet spot, the calm before the next leasing storm. Because construction slowdowns are likely to bring a bottleneck of warehouse space availability in 2024. Let's discuss what warehouse tenants need to know to remain on top.