Investment Opportunities

Land Development

Land Development Outlook

Figure 1: Industrial occupancy (bar) and rent growth (line) by year, with forecasts. Occupancy is very high (~92%); rent growth slowed from the 2021 peak but remains positive.

  • Strong demand: The industrial sector continues to benefit from e-commerce and supply-chain reshoring. U.S. e-commerce’s share of retail sales hit ~23% in 2024 and is expected to reach 25% by end-2025. This underpins demand for warehouses and distribution centers. Global supply-chain concerns and just-in-case inventory strategies mean companies keep leasing logistics space. In our view, “flight to quality” is ongoing: modern, last-mile facilities command the most interest.
  • Vacancy and rents: National industrial vacancy is still low (around 6–7%) despite some new supply. For example, CoStar data showed vacancy at ~6.7% in late 2024, only modestly above the all-time low. Meanwhile, rents have soared over recent years – asking rents are up ~61% since late 2019 – and have held firm. In Q1 2025, JLL reported the vacancy rate ticked up slightly to 7.3% as new deliveries came online, but leasing was very strong (123 million SF leased in Q1, the best quarter in a year). This mix suggests a steady market: occupancy may dip a bit in the near term, but long-term rent growth potential remains healthy.
  • Slowing supply: After record construction in 2020–22, industrial development has slowed. JLL notes the development pipeline fell nearly 30% YoY in Q1 2025, the lowest backlog since 2015. This means fewer completions ahead: one report forecasts new deliveries in 2025 will be about half of 2024’s peak. For CMIC investors, this is good news – less new supply should relieve some upward pressure on vacancy. Meanwhile, older or functionally obsolete warehouses may clear out, but newer logistics assets will stay in demand.
  • Investment focus: We advise targeting core industrial markets (Inland Empire, Atlanta, Chicago, etc.) and niche segments (cold storage, last-mile near population centers) where demand outstrips supply. Given the strong leasing backdrop, long-term hold strategies (core and core-plus) are warranted. However, valuations are higher than before, so CMIC looks closely at entry yields. Sticking to well-leased, institutional-quality properties with credit tenants will help secure the predictable cash flows and appreciation that our members seek.

Land Development Investment Opportunities

bellville

Belleville

Bellville, TX

old shell

Old Shell Rd

Houston, TX

country

County Rd 904

Joshua, TX