According to its index, industrial real estate fell 5.3% from the fourth quarter (Q4) of 2022 to the third quarter (Q3) of 2023, compared with a decline of 8.39% for all commercial real estate during that time.
Industrial real estate has been one of the better-performing classes of real estate in the early 2020s. The National Council of Real Estate Investment Fiduciaries (NCREIF) tracks the performance of different real estate investments. According to its index, industrial real estate fell 5.3% from the fourth quarter (Q4) of 2022 to the third quarter (Q3) of 2023, compared with a decline of 8.39% for all commercial real estate during that time. The National Association of Realtors (NAR), in an October 2023 report, notes similar findings but points out that there has also been a 43% increase in square footage over the past year in the industrial real estate market, a far cry from other areas of commercial real estate seeing declines. Rent for warehouses and logistics facilities in 2023 had the strongest increase in recent years, though further growth could be tempered if the economy slows.