- Industrial property sales to occupiers jumped 32% in 2024, with older buildings making up the bulk of deals.
- Buying offers long-term savings, tax benefits, and greater control over property use.
- Chicago, Houston, and Los Angeles led the nation in occupier acquisitions.
- With over 21,000 leases expiring in the next three years, the trend toward ownership is expected to grow.
New CBRE report shows an increasing number of industrial occupiers are choosing to buy their facilities instead of leasing, as reported by Globe St.
In 2024, sales to occupiers rose 32% to 2,504 transactions, and the average sale price climbed 5% to $152.42 PSF. The third quarter was the busiest, with 682 sales averaging $160 PSF.
Why Buy Now?
Occupiers are choosing to purchase for a variety of reasons: long-term cost savings, tax deductions on mortgage interest and expenses, and freedom from lease negotiations or rent hikes.
Ownership also allows for greater control over property use, including renovations and layout customization. As industrial real estate continues to appreciate in value, many see these acquisitions as smart long-term investments.
Older Buildings, New Demand
Investors are showing a greater willingness to sell older industrial assets, especially buildings constructed before 1980.
In fact, over half of the buildings acquired by occupiers last year were built prior to 1980. Only 389 of the 2,504 deals involved buildings built after 2000.
In all of the top 10 markets for occupier acquisitions, the average building purchased was at least 25 years old.
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Top Markets for Occupier Acquisitions
Chicago led the way in 2024 with:
- 188 transactions
- $93.88 PSF average sale price
- Average building year: 1977
Next was Houston with 143 deals averaging $113.79 PSF. Los Angeles followed with 123 sales and the highest price PSF at $287.79. LA also had the oldest buildings sold, averaging 55 years old.
Other active markets included Dallas–Fort Worth, Northern–Central New Jersey, California’s Inland Empire, Atlanta, Detroit, Phoenix, and Minneapolis.
Looking Ahead
More opportunities for occupiers to buy are on the horizon. Nearly 21,300 industrial leases are set to expire over the next three years—more than 12,600 of those in buildings built before 2000.
As supply increases, CBRE expects occupier acquisitions to make up a larger share of industrial real estate activity.
