Industrial Top & Bottom Markets: Effective Rent Growth
On aggregate, the nation as a whole had a growth rate of 2.9% this quarter. The top three markets on the chart- Sacramento, Orlando, and Jacksonville- had year-over-year growth rates of 6.5%, 6.2%, and 6.1%, respectively. These were the only metros to have growth rates over 6% this quarter.
Last quarter, Cleveland and Richmond, along with two Texas markets (Austin and San Antonio), were in the bottom five. The pattern repeats this quarter, except now our two Texas markets are San Antonio and Dallas. However, even in the bottom five, every distribution shown in our chart has a positive median. Richmond, the lowest ranked metro, has a median year-over-year growth rate of 1.1%. On the high end, Sacramento has a median growth rate of 7.8% – which is a bit of an outlier, as the other metros cluster around 2-3%. The industrial sector continues to be strong.