Currently, a fundamental factor is proving advantageous for rental growth and expected to continue over the next few years—the broader market for warehouse space remains extremely tight by historical standards, with availability still far below pre-pandemic levels. The lack of new supply has created a floor for rents in the space, with pricing for new rentals remaining at or near the premiums that lessors were able to demand during the height of the pandemic. Across the U.S., warehouse rents rose to $10.13 per square foot at the end of  2024, up 4.5% from a year earlier and 61% from the fourth quarter of 2019 (see below). As leases continue to come up for renewal, owners are benefiting from increased pricing power as they bring rents in line with current market rates.

Learn more about the logistics sector and why we believe it is poised for sustainable growth.