We are pleased to release the latest State of the U.S. Industrial Market. This quarterly report provides key metrics on supply, demand and pricing of industrial real estate, along with analysis of related economic conditions and demand drivers—including ports, e-commerce and manufacturing—at both national and market-level geographies.
A few noteworthy facts from our research:
- Companies prepare for potential China and other country tariffs by pulling freight forward, considering price hikes and adjusting supply chains.
- Despite tariff risks, healthy consumer trends, e-commerce and freight volumes signal a rebound, with 2025 absorption forecast 47.1% higher than 2024.
- Industrial performance diverges as some markets and submarkets normalize while others face high vacancies, driven by supply; Class A 200-750k sf is the weakest segment.
- The market added 59.1 million square feet (msf) of sublease space in 2024, but large blocks are turning over in 11 months on average, often absorbed by 3PLs.
- The construction pipeline is down 56.6% from its 2022 peak, stabilizing at pre-COVID levels with little change from Q3 2024 and unlikely to decline further.