Companies who utilize industrial spaces are increasingly choosing to buy properties rather than rent them, according to a new report from commercial real estate services firm CBRE.
Last year, sales to these buyers rose 32 percent to 2,504. The average sales prices also ticked up by 5 percent, to $152.42 per square foot.
The market that has seen the most purchases of industrial assets by users of those spaces is Chicago, followed by Houston and Los Angeles.
The fourth quarter of 2024 saw transactions fall nationally – by about 9 percent – for the first time since the second quarter of 2023.
For industrial occupiers, buying poses many benefits, including long-term cost savings after paying off a mortgage, tax deductions for mortgage interest, and not having to deal with rent increases. Investors are also more likely to sell industrial properties, as many were built before 1980.
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