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What to watch in 2025: Small bay industrial space to remain scarce regardless of US economic performance

Chronic undersupply of small industrial spaces set to persist in the new year
HVAC equipment wholesaler Johnstone Supply leased 8,300 square feet at 5418-5426 101<sup>st</sup> East Ave. in Tulsa, Oklahoma during late 2024. The space was on the market for less than three months, reflecting the continued strong demand for small bay industrial space. (Justin Prokop/CoStar)<br>
HVAC equipment wholesaler Johnstone Supply leased 8,300 square feet at 5418-5426 101st East Ave. in Tulsa, Oklahoma during late 2024. The space was on the market for less than three months, reflecting the continued strong demand for small bay industrial space. (Justin Prokop/CoStar)
CoStar Analytics
December 24, 2024 | 2:30 P.M.

Whether demand for U.S. industrial space will increase in 2025 remains an open question. Over the past 12 months, the total amount of industrial space occupied nationally has increased at the slowest pace since 2012 and momentum appears to have weakened further in the fourth quarter.

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    • Robert Logan

      Director of Acquisitions and Capital Markets, B&D Holdings