Intelligent Investment
More Occupiers Opting to Buy Industrial Facilities
March 24, 2025 2 Minute Read
Property sales to industrial occupiers increased by 32% last year to 2,504,1 resulting in a 5% increase in the average sales price to $152.42 per sq. ft. More occupiers are buying rather than renting their facilities for a variety of reasons, including:
- Long-term cost savings once the mortgage is paid off.
- Tax deductions for mortgage interest, property taxes and certain operating expenses.
- Customization or renovation of the property to meet the occupier’s unique needs.
- Appreciation of property value, providing an attractive long-term investment return.
- No rent increases or lease terminations.
Figure 1: Industrial Occupier Acquisitions & Price PSF
Sales are increasing because investors are more willing to dispose of certain industrial assets, especially older ones (see our separate report). Just over half of occupier acquisitions last year were for pre-1980 buildings, while all of the buildings that occupiers purchased in the 10 markets where they were most active were at least 25 years old.
Figure 2: 2024 Occupier Acquisitions by Building Age
Figure 3: Top 10 Markets for 2024 Occupier Acquistions
Nearly 21,300 industrial leases are scheduled to expire over the next 36 months, more than 12,600 of which are in pre-2000 buildings. This will provide more opportunity for occupiers to buy facilities. With supply expected to increase, occupier acquisitions will account for a greater share of industrial net absorption.
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Related Service
- Property Type
Industrial & Logistics
We represent the largest industrial real estate platform in the world, offering an integrated suite of services for occupiers and investors.
Contacts
James Breeze
Vice President, Global Industrial and Retail Research
John Morris
President, Americas Industrial & Logistics, Advisory Services
