Top 10 Emerging Industrial Markets

Driven by robust logistics networks, growing investor confidence and a diversifying tenant base, several emerging industrial markets across the U.S. are gaining momentum. Using CommercialEdge data, Commercial Property Executive highlights metros with expanding inventories, rising transaction volumes and strong job markets, all signaling long-term growth potential.

The South region continued to showcase its industrial strength, driven by robust sales activity and impressive growth, positioning key metros as leaders in the nation’s industrial landscape. In 2024, Charleston, S.C., saw $345 million in industrial sales, while El Paso, Texas, led in year-over-year pricing growth—145 percent. In South Florida, West Palm Beach-Boca Raton topped the list with $418 million in sales. While markets like Memphis, Kansas City and Savannah have transcended emerging market status, with inflated pipelines and enduring interest, the markets on this list have the makings of potential and solid economic indicators. They also reap the benefits of strong positioning near growing ports or spillover effects.

Smaller markets like Boise, Des Moines, and Tucson are also making strides, with business relocations and affordable pricing boosting demand. Meanwhile, the Tri-Cities region in Tennessee stands out with 3.9 percent job growth, strengthening its industrial footprint. These markets are uniquely positioned for sustained growth, backed by a mix of favorable economic conditions and strategic investments. By tapping into the latest insights from CommercialEdge data, we explore the evolving roles these regions are playing in shaping the nation’s industrial landscape. Here are our 10 emerging industrial markets this year:

Charleston, S.C.

Charleston continues to cement its status as an emerging industrial market, driven by robust construction activity and surging investor interest. As of late 2024, the market had more than 2.7 million square feet of industrial space underway across 10 properties, accounting for 3.3 percent of total stock, CommercialEdge data shows. The metro’s strength lies in its strategic position along the East Coast, with direct access to the Port of Charleston—one of the fastest-growing ports in the U.S.

Major industrial players such as Volvo, Bosch or Mercedes-Benz have expanded their footprint in the area throughout recent years, further solidifying its status as a manufacturing hub. Despite a slight dip in pricing, Charleston remains a hotbed for industrial transactions, with total sales surpassing $345 million in 2024 at an average price of $117.16 per square foot. A 3.5 percent annual job growth rate further underpins its expansion.

El Paso, Texas

With a flourishing industrial sector and rising investor confidence, El Paso is swiftly emerging as a key logistics and manufacturing hub. According to CommercialEdge data, the market recorded 2.6 million square feet of industrial space under construction at the end of 2024, or 9 properties, representing 3.6 percent of its total inventory. Its advantageous location on the U.S.-Mexico border fuels cross-border trade, attracting major tenants from the automotive, electronics and food processing industries.

The market also boasts one of the strongest pricing growth trajectories, with a 145 percent year-over-year increase in price per square foot—the highest percentage among the top emerging markets—reaching an average of $44.24 at the end of December 2024. Job growth also remained positive, up 1.1 percent year-over-year. This combination of affordability, location and infrastructure investment positions El Paso as a high-potential market for continued industrial growth.

White Plains, N.Y.

The suburban hub just north of New York City is carving out a strong niche as one of the emerging industrial markets in the nation. The market had 9 properties totaling nearly 2.7 million square feet underway at the end of December 2024, accounting for 2.9 percent of total stock, with ongoing projects focused on modern distribution centers catering to last-mile logistics demand.

White Plains stands out for its high property valuations, averaging $126.28 per square foot—one of the highest among emerging industrial markets. Additionally, the market saw a 43.3 percent year-over-year increase in pricing, signaling steady investor confidence despite broader economic uncertainty.

With its proximity to major urban centers, White Plains continues to attract investments from major firms such as Amazon and FedEx, which are expanding their logistics operations in the area. While job growth in the region was more moderate (0.6 percent year-over-year), the area benefits from a highly skilled workforce and access to one of the largest consumer bases in the country.

Southwest Florida Coast

The region has been establishing itself as a dynamic emerging industrial market for a while now, propelled by strong investment activity and an active pipeline. In 2024, Southwest Florida Coast’s industrial sales totaled more than $311.7 million, with an average price per square foot of $134.40, CommercialEdge data shows. This robust investment is supported by a growing population, increasing demand for distribution hubs and ongoing infrastructure improvements.

Industrial development within the market remained strong all throughout 2024, with 1.5 million square feet under construction at the end of the year, or 2.4 percent of stock, primarily concentrated in logistics and light manufacturing projects. Retail logistics companies such as Publix and Walmart have been expanding their distribution operations in the region, capitalizing on Florida’s growing consumer demand. Despite its smaller job growth rate—0.5 percent year-over-year—the area continues to attract businesses seeking proximity to Florida’s expanding consumer markets.

Boise, Idaho

Boise’s industrial market has been steadily gaining momentum, driven by a surge in new residents and business relocations. The sector is evolving with a healthy balance of construction activity and pricing growth. In 2024, the metro saw consistent development, with six properties totaling 1.2 million square feet underway at the end of the year, or 2.6 percent of stock, to meet rising demand from the logistics, tech and food processing industries.

Although investment activity slowed last year, assets traded at an average of $149.21 per square foot, offering strong value compared to larger West Coast markets. Major employers like Albertsons and Micron Technology continue to expand their footprint, fueling further demand. While pricing growth remained moderate at 22.4 percent year-over-year, Boise’s job market continues to strengthen, bolstered by a 2.9 percent rise in industrial employment.

West Palm Beach-Boca Raton, Fla.

The region is experiencing a surge in industrial expansion, fueled by South Florida’s thriving economy and growing e-commerce demand. CommercialEdge highlights that in 2024, West Palm Beach-Boca Raton led all markets in industrial sales, surpassing $418 million, with properties trading at an average of $224.13 per square foot—still more affordable than high-priced markets like Brooklyn, Queens and San Francisco.

However, industrial development has slowed compared to previous years, with just 130,000 square feet across three properties in the pipeline as of the end of 2024, primarily catering to logistics, distribution and light manufacturing tenants. While job growth has been modest at 0.9 percent year-over-year, the metro benefits from a diverse business ecosystem and steady population growth, sustaining long-term demand and cementing its status as an emerging industrial market.

North Central Florida

North Central Florida’s industrial market is gaining traction as a vital logistics hub, capitalizing on its central location and easy access to major highways connecting the state’s key metros. In 2024, industrial development remained steady, with three projects totaling 1.1 million square feet under construction by December’s end, mainly focused on distribution centers and light manufacturing. This growth accounted for 2.1 percent of the region’s total industrial inventory.

Investment activity was robust, with industrial sales reaching $108.6 million and property values soaring 141.4 percent year-over-year to an average of $45.05 per square foot. Companies like PepsiCo and Sysco continue to expand in the region, drawn by its strategic advantages and affordable operating costs. While job growth held steady at 0.4 percent, the continued expansion of industrial space reinforces the region’s long-term growth prospects.

Tucson, Ariz.

Tucson’s industrial sector is holding strong, fueled by its strategic location near the U.S.-Mexico border and a booming manufacturing base. According to CommercialEdge, development activity in 2024 remained steady, with four properties totaling 715,000 square feet under construction by year’s end, primarily catering to logistics and aerospace tenants.

The market saw robust investment, with industrial sales approaching $135 million by the close of 2024. Pricing remains competitive, with properties trading at an average of $99.98 per square foot, positioning Tucson as an appealing alternative to more expensive markets. The market experienced a 29.6 percent increase in pricing year-over-year, indicating sustained investor confidence, while job growth stayed positive at 1.1 percent.

Des Moines, Iowa

Des Moines is quietly emerging as a key industrial hub in the Midwest, driven by its robust transportation infrastructure and business-friendly environment. The metro maintained a strong development pipeline in 2024, with 1.5 million square feet across four properties underway, primarily serving distribution and light manufacturing tenants.

Investment activity remained stable, with industrial sales totaling $52.9 million, while property values rose 16.1 percent year-over-year to an average of $81.30 per square foot. Major companies like John Deere and Amazon continue to expand their footprint, further fueling industrial demand. Des Moines also saw steady job growth, with employment rising 1.8 percent year-over-year, reinforcing the metro’s sustained industrial momentum.

Tri-Cities. Tenn.

The Tri-Cities region in Northeast Tennessee is gaining recognition for its gradual industrial sector expansion, supported by its strategic location along key transportation corridors. By the end of 2024, industrial development included one property totaling 481,000 square feet, representing 1 percent of the metro’s total inventory.

Industrial sales in the region reached $118.7 million, with properties trading at an average of $115.85 per square foot. Despite a slight dip in pricing, the job market remains strong, with a 3.9 percent year-over-year increase in employment—the second-highest among similar markets. Leading employers like Eastman Chemical and FedEx Ground are expanding their logistics networks, further strengthening the region’s prospects for sustained industrial growth.

Methodology

The methodology behind the Top 10 Emerging Industrial Markets ranking leverages data from CommercialEdge, complemented by an analysis of the U.S. Census Bureau’s annual employment growth rate. Our rankings are determined based on metrics recorded up until December 2024.

Factors considered in our methodology encompass the volume of industrial construction underway, industrial sales volume for the year 2024, pricing per square foot, the annual change in price per square foot and job growth specific to the industry. We believe this ranking methodically balances the considerations of growth potential and the overall size of the market.

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