Industrial Construction Starts Decrease

In the third quarter of 2024, industrial construction starts saw a decline compared to the previous quarter, with total square footage clocking in at 15.1 million, according to CommercialEdge data. This marks a decrease of 75.3 percent, or 46.1 million square feet, from the second quarter’s total of 61.1 million square feet.

Similarly, when comparing the third quarter of the year to the first quarter, there was a notable decline of 46.3 million square feet from the first quarter’s total of 61.4 million square feet. This quarter-over-quarter drop underscores ongoing uncertainties in the commercial real estate sector, as firms may be hesitant to commit to new projects amid fluctuating economic conditions.

In September 2024, industrial construction starts totaled 659,702 square feet, marking a large decrease compared to September 2023’s volume of 26 million square feet. Additionally, this year’s figures indicate a decline of approximately 86 percent from September 2022, when 4.7 million square feet of new space broke ground.