After a slow start to the year, Midwest industrial sales activity has started to show signs of recovery. In September, the Federal Reserve lowered the federal funds rate to a range of 4.75 to 5.0%, the first rate decrease since early 2020. This has generated some relief within the debt markets, enticing capital back into the marketplace ahead of additional rate cuts expected for the remainder of 2024 and into 2025.
In addition to budding optimism around the rate cutting cycle and the prospects for a soft landing, both buyers and sellers have more confidence on pricing due to increased sales activity over the last two quarters and market fundamentals continuing to stabilize across most major Midwest markets. As improving conditions continue to pull capital off the sidelines, sellers that are behind on their disposition goals will feel more confident to transact.
