Rents for industrial space were up nationwide to start the year while U.S. manufacturing has been expanding, according to CommercialEdge.
Rents averaged $8.35 per square foot across the U.S. in January, up 6.8% compared to a year earlier, reported CommercialEdge, a division of Yardi.
Industrial rents vary tremendously by region, with several cities in the West posting rents north of $10 per square foot.
Orange County and Los Angeles had the highest rents tracked by CommercialEdge, at $16.56 and $14.99 per square foot, respectively.
Other cities with high rents included Seattle ($11.61), New Jersey ($11.51), The Inland Empire ($11.06) and Boston ($11.03)
In its most recent industrial report, CommercialEdge also noted that construction of manufacturing facilities has increased threefold since 2021.
There are headwinds for companies in the sector, however, including finding suitable land close to sufficient labor pools and resources, like water and power. Tariffs could also present a threat, particularly to companies with plants near Mexico.
“Trade policy may also ignite a trade war and trigger retaliatory tariffs that could jolt manufacturers that export a significant portion of their goods,” said Peter Kolaczynski, director of CommercialEdge.
