U.S. Industrial Reports

Insights

Access the latest quarter commercial real estate results for the U.S. industrial sector. MarketBeat reports analyze quarterly market activity including supply, demand and pricing trends.

Key INDUSTRIAL Takeaways For Q1 2025

• Demand remained resilient in the first quarter despite tariff uncertainty. The U.S. industrial sector continued to absorb space in the first quarter, registering 23.1 million square feet (msf) of positive absorption. This was down from 42.4 msf observed in the fourth quarter but on par with the level absorbed in the same quarter one year ago.
• Vacancy continued to drift higher to 7%. The combination of vacant speculative deliveries and some occupier dispositions caused the U.S. industrial vacancy rate to rise by 30 basis points (bps) to 7%. After remaining historically tight for several straight years, vacancy is now back in line with the historical average—indicative of a more balanced market.
  
• Rent growth continued to moderate. Rising vacancy continues to take some of the pressure off rents. In the first quarter of 2025, rents grew by 4.3% year-over-year (YOY) but were flat quarter-over-quarter (QOQ). Moreover, a rising number of markets reported YOY declines this quarter...

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RSK: Good report....worth the read. Demans has caught up with construction which has slowed down. All those spec spaces are being filled so vacancy rate should decrease soon.