Recent metrics point to a stabilizing market; however, tariff uncertainty is injecting caution into an industrial landscape that depends heavily on global trade. We’re pleased to share the latest State of the U.S. Industrial Market, our quarterly report featuring key insights on industrial real estate supply, demand and pricing. The report also includes analysis of broader economic conditions and demand drivers such as ports, e-commerce and manufacturing at both national and market levels.
A few noteworthy facts from our research:
- Changing policies are slowing tenant activity and driving short-term renewals, a trend not yet visible in Q1 leasing data but likely to shape activity through year-end.
- Port markets trading heavily with China, especially Los Angeles, face the most risk, while diversified trade hubs and firms with domestic scale are better positioned.
- Logistics firms tied to China drove 20% of 2024 leasing activity, fueled by front-loading and e-commerce, but questions around staying power are rising in 2025.
- About one-third of markets have seen asking rents fall 5% or more, but rising concessions mean effective rents are down even further in many cases.
- The development pipeline is down 62% from its peak and back to 2018 levels, helping stabilize the market as fewer projects break ground in 2025.