In the final quarter of 2024, the REIT market met a rising 10-year treasury yield with cap rate expansion. Most notably, the industrial sector experienced the most dramatic change. Due largely to a mismatch in supply and demand, deteriorating fundamentals in the sector have led to investor wariness. The vacancy rate for the property type increased while rent growth flatlined, with more supply expected to hit the market in 2025, potentially further exacerbating uncertainty in the sector.
Our Q4 2024 REIT Cap Rate Perspective Summary Report offers more detailed insight into these sectors, as well as our perspective across the REIT market.
