Warehouse Vacancies Surge Past 7%, Marking a Post-Pandemic Reset

After years of robust growth, the U.S. warehouse sector is now grappling with its highest vacancy rate in over a decade. According to Cushman & Wakefield, warehouse vacancies rose to 7.1% in the second quarter, up from 6.1% a year ago, and the first time above 7% since 2014.

A combination of shifting trade policies and pandemic-era overbuilding has left the sector in a state of flux. Retailers and manufacturers rushed to stockpile inventory ahead of anticipated tariffs, then quickly pulled back as duties were implemented under the Trump administration. Many tenants are now working to shed surplus space. U.S. sublease listings hit a record 225 million square feet in the second quarter, up 25% year-over-year, according to Savills...

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RSK: This may be a temporary thing. With trade tariffs unknown, people are being cautious as people pull back on spending at the moment.