Industrial Construction Starts Show Uneven Momentum

Groundbreakings declined sharply this year, compared to the same period in 2024, according to Yardi Research Data.

The summer months of 2025 marked a decisive slowdown in industrial construction starts, totaling 45.8 million square feet, Yardi Research Data shows. That’s 41.7 percent below the 78.5 million square feet recorded in summer 2024 and 48.5 percent lower than 2023’s elevated 88.8 million square feet during that same period.

The decline was steady month to month—June 20.9 million square feet, followed by July’s 15.1 million square feet and 9.8 million square feet in August—a clear contrast with summer 2024’s stronger cadence (June 28.3 million square feet, July 23.2 million square feet and August 26.9 million square feet).

Earlier this year, activity was steadier: industrial construction starts totaled 68 million square feet in spring, only 4.0 percent less than 70.8 million square feet recorded in spring 2024, as a strong March (27.2 million square feet) helped offset a softer May (16.7 million square feet). The year began on cooler footing though: winter (December 2024–February 2025) posted 55.1 million square feet, down 10.7 percent from 61.7 million square feet in winter 2024....