The Best Cities to Buy Industrial Property in 2024

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As we move into 2024, the industrial real estate landscape is expected to shift towards equilibrium, with supply and demand finding a balance after years of pricing growth. Demand will vary by region and the amount of available inventory, with a growing preference for eco-friendly buildings among industrial tenants.

PwC’s latest Emerging Trends in Real Estate report suggests a promising outlook for industrial investments in markets like Jacksonville, Knoxville, and Long Island. These cities are expected to lead the country in 2024. These regions should be on your radar if your investment plans include industrial properties.

Every market mentioned has distinct advantages for investors, be it a robust population and job growth or a strategic location preferred by businesses. We’ll dig deeper into the specifics of each market in the following sections.

10 Top Cities for Investing in Industrial Property in 2024

When selecting the ideal city for industrial property acquisition, investors should keep in mind several crucial aspects:

  • The city’s existing and anticipated economic expansion. 
  • The local market’s demand for industrial spaces. 
  • The potential return on investment from a property within that market.

Here is a list of the top 10 cities industrial investors should look at in 2024. Commercial real estate statistics are from Crexi’s internal database. Demographic information for each metropolitan area is from CensusReporter.org,  DataUSA.io, and the U.S. Bureau of Labor Statistics.

Yonkers, NY / United States – Dec. 24, 2021: a wide landscape view of Yonker’s historic waterfront, made up of restaurants, shops and residential buildings.

1. Westchester, NY/Fairfield, CT

Westchester, NY and Fairfield, CT are witnessing an uptick in population growth and a burgeoning job market, particularly in healthcare, education, and technology. 

These factors, coupled with their strategic proximity to New York City, are driving a rise in demand for industrial spaces. The need for warehouses, flex space, and distribution centers is robust due to the area’s thriving e-commerce and logistics sectors.

Crexi Insights Westchester, NY / Fairfield, CT Industrial Trends

For Lease (active)

  • Asking rent (annual): $20/SF
  • Spaces available on Crexi: 64
  • Median SqFt: 8,650
  • Days on market: 260

For Sale (active)

  • Asking sale price (median): $3.97 million
  • Price/SqFt: $212
  • Asking cap rate: 6.2%
  • Total listings: 34
  • Days on market: 117

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $1.35 million
  • Sold price /SqFt: $210
  • Sold cap rate: 5.7%
  • Total sales volume: $194 million
  • Days on market: 36
Jacksonville FLorida skyline from an aerial view
Jacksonville aerial view.

2. Jacksonville, FL

Jacksonville is a rapidly growing city with a job growth rate of 2.8% in 2023 and a population increase of 11.2% over the past decade. Its strategic location as a logistics hub and significant expansion in sectors such as e-commerce and manufacturing fuel the ongoing demand for industrial real estate.

Sam’s Club, Total Distribution (a third-party logistics service provider), and industrial equipment supplier Genplant have all leased significant amounts of space in the metro area. Despite a slight increase in the vacancy rate, the fundamentals remain strong with record-high asking rents. 

Crexi Insights Jacksonville Industrial Trends

For Lease (active)

  • Asking rent (annual): $12/SF
  • Spaces available on Crexi: 201
  • Median SqFt: 28,000
  • Days on market: 188

For Sale (active)

  • Asking sale price (median): $1.38 million
  • Price/SqFt: $101
  • Asking cap rate: 6.5%
  • Total listings: 44
  • Days on market: 113

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $866,000
  • Sold price /SqFt: $91
  • Sold cap rate: 6.4%
  • Total sales volume: $1.60 billion
  • Days on market: 338

3. Knoxville, TN

Knoxville’s demand for industrial space is driven by its strategic location at the intersection of three major interstates, making it an attractive hub for manufacturing and distribution. The city has seen a steady population increase and impressive job growth, driven partly by the area’s low cost of living, a stable military and retiree market, and business-friendly policies.

The metro area is home to various vital logistics and distribution companies, including R&S Logistics and DeRoyal Industries. Additionally, companies like Amazon, Arrive Logistics, Chewy, Inc., DHL, FedEx Logistics, GAP, and Recreational Equipment, Inc. (REI) have brought new jobs to the state, further strengthening the demand for logistics, distribution, and industrial space.

Crexi Insights Knoxville Industrial Trends

For Lease (active)

  • Asking rent (annual): $10/SF
  • Spaces available on Crexi: 35
  • Median SqFt: 8,000
  • Days on market: 131

For Sale (active)

  • Asking sale price (median): $1.03 million
  • Price/SqFt: $79
  • Asking cap rate: 6.0%
  • Total listings: 10
  • Days on market: 78

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $750,000
  • Sold price /SqFt: $113
  • Sold cap rate: 7.2%
  • Total sales volume: $148 million
  • Days on market: 142

4. Long Island, NY

The industrial market in Long Island, comprising the counties of Nassau, Suffolk, Queens, and Kings (Brooklyn), is experiencing significant demand due to several key factors.

Long Island’s strategic location near New York City, with easy access to the City, airports, seaports, and interstate highways, creates efficient supply chain operations. The diverse local economy also plays a role. Industries such as manufacturing, food processing, and biotechnology require significant amounts of industrial space for operations, and these sectors are thriving on Long Island.

However, it’s worth noting that supply is tight due to limited available land for new developments. This scarcity has led to increased competition and higher prices for industrial properties. Despite this, the outlook remains positive due to strong market fundamentals and continued growth.

Crexi Insights Long Island Industrial Trends

For Lease (active)

  • Asking rent (annual): $27/SF
  • Spaces available on Crexi: 968
  • Median SqFt: 6,021
  • Days on market: 193

For Sale (active)

  • Asking sale price (median): $3.25 million
  • Price/SqFt: $360
  • Asking cap rate: 5.0%
  • Total listings: 262
  • Days on market: 159

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $1.97 million
  • Sold price /SqFt: $453
  • Sold cap rate: 5.9%
  • Total sales volume: $2.0 billion
  • Days on market: 238
Miami boat port with trees in the foreground and the city of Miami behind the harbor

5. Miami, FL

With a significant job growth of 69,700 in nonfarm employment and a 12% surge in population, Miami’s booming economy and expanding sectors like construction and extraction drive a high demand for industrial real estate.

The market’s geographic location also significantly impacts the demand for industrial space. Its position as a gateway to Latin America and its proximity to significant ports make it an ideal location for e-commerce operations and distribution centers. 

Additionally, land constraints and ongoing global supply chain challenges have led to high rents and tight availability. Port congestion along the West Coast has also driven companies towards the Southeast region, further increasing demand.

Crexi Insights Miami Industrial Trends

For Lease (active)

  • Asking rent (annual): $24/SF
  • Spaces available on Crexi: 263
  • Median SqFt: 3,750
  • Days on market: 117

For Sale (active)

  • Asking sale price (median): $1.67 million
  • Price/SqFt: $325
  • Asking cap rate: 4.1%
  • Total listings: 174
  • Days on market: 130

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $630,000
  • Sold price /SqFt: $268
  • Sold cap rate: 5.4%
  • Total sales volume: $867 million
  • Days on market: 106
A look at downtown Raleigh's skyline with crepe myrtle trees blooming.

6. Raleigh/Durham, NC

The Raleigh/Durham industrial market in North Carolina’s Research Triangle is experiencing a surge in demand, primarily driven by its strategic location and robust infrastructure. Major transportation routes, including Interstates 40 and 85 and the Raleigh-Durham International Airport, make the region an attractive hub for logistics and distribution companies. 

Companies like Amazon have established large fulfillment centers in the region. For instance, Amazon’s 620,000-square-foot center in Garner underscores the trend of e-commerce giants seeking warehouse space to ensure faster delivery times.

The Research Triangle Park (RTP), one of the largest research parks in the world, is another key factor driving the demand. RTP houses hundreds of companies, including IBM, GlaxoSmithKline, and Cisco Systems, which require industrial spaces for research and manufacturing purposes.

The region has seen consistent population and job growth. Raleigh was the second-fastest-growing city in the U.S. from 2010 to 2020, while Durham experienced a population increase of over 20% during the same period. The diverse local economy—spanning sectors such as biotechnology, pharmaceuticals, and information technology—also drives the demand for industrial space in the Raleigh/Durham area.

Crexi Insights Raleigh/Durham Industrial Trends

For Lease (active)

  • Asking rent (annual): $16/SF
  • Spaces available on Crexi: 137
  • Median SqFt: 12,500
  • Days on market: 206

For Sale (active)

  • Asking sale price (median): $3.24 million
  • Price/SqFt: $209
  • Asking cap rate: 5.8%
  • Total listings: 17
  • Days on market: 159

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $1.44 million
  • Sold price /SqFt: $177
  • Sold cap rate: 6.0%
  • Total sales volume: $187 million
  • Days on market: 91

7. Baltimore, MD

Baltimore’s industrial market is bolstered by its proximity to key transportation nodes. Baltimore/Washington International Thurgood Marshall Airport, one of the busiest airports in the U.S., provides seamless air cargo services. At the same time, the Port of Baltimore, one of the deepest and most versatile ports in the nation, handles a significant volume of cargo every year.

The market is home to a diverse range of logistics and manufacturing businesses. E-commerce giants like Amazon have established large distribution centers here, while global sports gear manufacturer Under Armour’s headquarters in Baltimore boosts the demand for industrial spaces. Additionally, with firms like Emergent BioSolutions, Baltimore’s biotech sector adds to the demand for industrial space.

Population and job growth are also driving factors. The Greater Baltimore area has seen consistent population growth, with an estimated population of over 2.8 million in 2023. The region also boasts a strong job market, particularly in healthcare, education, and government sectors, which indirectly contributes to the demand in the industrial market. 

Crexi Insights Baltimore Industrial Trends

For Lease (active)

  • Asking rent (annual): $12/SF
  • Spaces available on Crexi: 109
  • Median SqFt: 5,000
  • Days on market: 184

For Sale (active)

  • Asking sale price (median): $1.42 million
  • Price/SqFt: $995
  • Asking cap rate: 7.2%
  • Total listings: 62
  • Days on market: 267

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $500,000
  • Sold price /SqFt: $93
  • Sold cap rate: 7.3%
  • Total sales volume: $224 million
  • Days on market: 106
Panoramic view of downtown Charlotte, NC as seen from Romare Bearden Park

8. Charlotte, NC

Charlotte’s population has grown consistently, jumping from 872,498 in 2019 to 900,350 in 2020. This influx of residents has been accompanied by healthy job growth. The Charlotte Region outpaced the national average with a 3.2% increase in jobs from 2019 to 2020. 

The market’s strategic location makes it a critical hub for prominent transportation and logistics companies like UPS, FedEx, and Amazon. These industry giants rely heavily on the city’s extensive infrastructure, which includes key highways like interstates 77 and 85, the Charlotte Douglas International Airport handling over 2 million tons of cargo annually, and freight rail services, including Norfolk Southern and CSX.

The regional economy is also incredibly diverse, with finance, technology, healthcare, and energy sectors. Charlotte is home to six Fortune 500 companies – Bank of America, Lowe’s, and Duke Energy, to name a few. The presence of these corporations creates a ripple effect, increasing the need for industrial spaces to accommodate suppliers and service providers linked to these industries.

Crexi Insights Charlotte Industrial Trends

For Lease (active)

  • Asking rent (annual): $14/SF
  • Spaces available on Crexi: 141
  • Median SqFt: 10,000
  • Days on market: 150

For Sale (active)

  • Asking sale price (median): $2.85 million
  • Price/SqFt: $210
  • Asking cap rate: 4.0%
  • Total listings: 31
  • Days on market: 67

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $1.87 million
  • Sold price /SqFt: $166
  • Sold cap rate: 5.8%
  • Total sales volume: $763 million
  • Days on market: 139
2009 Albuquerque Internation Balloon Fiesta

9. Albuquerque, NM

Albuquerque’s industrial market is also experiencing solid growth and robust demand. The metro area is located at the crossroads of two major interstate highways – I-40 and I-25 – an ideal hub for transportation and logistics companies. Key players in the industry, such as FedEx and UPS, have operations in the city, leveraging its strategic location for efficient distribution.

The economy includes key sectors such as aerospace and defense, energy technology, digital media, and film production. Notably, Netflix has chosen Albuquerque as the location for its new US production hub, which is expected to bring $1 billion in production to the state over the next decade. This investment influx will likely help increase the demand for industrial spaces.

Albuquerque’s population has seen steady growth over the years. The city’s population increased from approximately 546,000 in 2010 to over 560,000 in 2020. This population growth, coupled with the city’s economic development initiatives, will likely drive job growth and demand for industrial space.

Crexi Insights Albuquerque Industrial Trends

For Lease (active)

  • Asking rent (annual): $12/SF
  • Spaces available on Crexi: 124
  • Median SqFt: 8,715
  • Days on market: 188

For Sale (active)

  • Asking sale price (median): $1.23 million
  • Price/SqFt: $115
  • Asking cap rate: 4.6%
  • Total listings: 32
  • Days on market: 107

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $750,000
  • Sold price /SqFt: $125
  • Sold cap rate: 7.2%
  • Total sales volume: $75.6 million
  • Days on market: 423
Las Vegas, Nevada, USA cityscape along the strip at twilight.

10. Las Vegas, NV

Las Vegas is another industrial market showing signs of resilience and growth, benefitting from its strategic location in the Southwest and robust transportation infrastructure. The city’s position along major freight routes makes it an appealing base for logistics and distribution companies.

The economy is diverse, with strong entertainment, tourism, and gaming development, which traditionally drive demand for industrial spaces. However, Las Vegas has also seen growth in technology and e-commerce sectors over the past few years. Companies like Amazon have established operations in the area, increasing demand for industrial space.

Las Vegas’s population has grown consistently, from about 583,000 in 2010 to over 651,000 in 2020. This population growth is likely to fuel job growth, increase consumption, and drive demand for goods production and distribution, which will further stimulate the industrial market.

Crexi Insights Las Vegas Industrial Trends

For Lease (active)

  • Asking rent (annual): $15/SF
  • Spaces available on Crexi: 187
  • Median SqFt: 5,946
  • Days on market: 137

For Sale (active)

  • Asking sale price (median): $2.2 million
  • Price/SqFt: $260
  • Asking cap rate: 5.3%
  • Total listings: 64
  • Days on market: 104

Sales Comps (past 12 months)

  • Median sales price (last 1 year): $2.45 million
  • Sold price /SqFt: $245
  • Sold cap rate: 5.8%
  • Total sales volume: $813 million
  • Days on market: 102

Get more industrial property data at your fingertips with Crexi Intelligence.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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