In this video, I'll discuss Costar's recent prediction that industrial units will outperform multi-family this year.
As the headwinds that started in 2022 persist into 2023, costar is projecting that vacancy rates that have reached unprecedented lows in multi-family space will begin to creep back up north of 6% in 2023, while the industrial vacancy rates will maintain their vacancies around 4%.
Even at a time when we are seeing headlines about Amazon and other retailers curtailing their investments and development activities around industrial and distribution which would initially lead you to believe that we would see an adjustment here, the lack of new development is keeping the pressure on the availability.
With all that said, the multifamily space is still very strong and by no means projected to have an oversupply suddenly, but it is worth watching the rent-growth trends and compare against investment opportunity rent growth projections.
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