The U.S. industrial real estate market has seen 10 consecutive quarters of rising vacancy rates, favoring tenants. This trend may continue for another 12 to 18 months, peaking in late 2025 or early 2026 as speculative construction slows and new construction completions decrease.
Year-over-year rent growth has slowed to 2.1%, the lowest since 2012, but small-bay industrial markets remain strong with low vacancy rates. In contrast, larger logistics properties have higher vacancy rates, reaching 9%, the highest since 2012.
Our outlook in 2025 shows that larger users of logistics space should see a greater opportunity for savings, while smaller manufacturers will face more challenges. As always, get as far ahead of your real estate needs as possible so you can find the best options.
National industrial real estate trends
- With recent construction starts at 10-year lows, quarterly net completions are set to average 45 million SF during the second half of 2025 and just 38 million SF in the first half of 2026.
- Year-over-year rent growth has slowed to 2.1%, the slowest level since 2012.
- New supply additions have pushed the national vacancy rate to 7.0% in recent months, in line with 2014 levels.
- Industrial property sales totaled more than $65 billion in 2024, marking a 10% increase from the prior year.
- The effects of recent tariff increases on the industrial real estate market will become clearer in the upcoming quarters.
- The 18.5% decline in steel prices is signaling slowing construction spending, flat manufacturing activity, and global trade dynamics.
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If you’d like to learn more about the nation’s industrial real estate outlook, download the full report below. This report will give you full insight into the topics mentioned above, along with a variety of other statistics to help you stay ahead of market trends.
Information contained in this report is provided, in part, from third-party sources, including the U.S. Bureau of Labor Statistics, the Bureau of Economic Analysis, Engineering News-Record, and CoStar Group. Even though obtained from sources deemed reliable, no warranty or representation, expressed or implied, is made as to the accuracy of the information herein.
