{"id":47099,"date":"2026-01-27T07:29:06","date_gmt":"2026-01-27T04:29:06","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=47099"},"modified":"2026-04-27T14:21:33","modified_gmt":"2026-04-27T11:21:33","slug":"national-industrial-report-january-2026","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/national-industrial-report-january-2026\/","title":{"rendered":"January 2026 Industrial Report: Developers Look for Energy Security"},"content":{"rendered":"<p><span style=\"color: #0bbfeb;\"><strong>Key Takeaways:<\/strong><\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The coming year promises\u00a0<\/span><b><span data-contrast=\"auto\">plateauing vacancies<\/span><\/b><span data-contrast=\"auto\">\u00a0in industrial real estate, while\u00a0<\/span><b><span data-contrast=\"auto\">construction is at\u00a0the lowest point in a decade<\/span><\/b><span data-contrast=\"auto\">.\u00a0Tariff threats continue to bring uncertainty\u00a0as\u00a0the industry\u00a0awaits the\u00a0<\/span><b><span data-contrast=\"auto\">review of the\u00a0U.S.-Mexico-Canada Agreement (USMCA) in July<\/span><\/b><span data-contrast=\"auto\">.<\/span><b><span data-contrast=\"auto\">\u00a0<\/span><\/b><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">In-place industrial rents averaged\u00a0<\/span><b><span data-contrast=\"auto\">$8.87 per square foot<\/span><\/b><span data-contrast=\"auto\">\u00a0nationwide at the end of the year, up $0.11 on the\u00a0month and 5.4% annually.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The national vacancy rate sat at\u00a0<\/span><b><span data-contrast=\"auto\">9.2% at the start of the\u00a0year\u00a0\u2014<\/span><\/b><span data-contrast=\"auto\">\u00a0more\u00a0than twice the level\u00a0from\u00a02022\u00a0and 120 basis points (bps) higher\u00a0than\u00a0last year.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Currently,\u00a0<\/span><b><span data-contrast=\"auto\">357.4 million square feet\u00a0of industrial space<\/span><\/b><span data-contrast=\"auto\">\u00a0is\u00a0being built nationwide. Last year\u2019s deliveries stand\u00a0<\/span><b><span data-contrast=\"auto\">just above\u00a0300 million square feet<\/span><\/b><span data-contrast=\"auto\">, which was the slowest year for construction since 2017.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Industrial\u00a0transactions\u00a0<\/span><b><span data-contrast=\"auto\">had their strongest year since 2022<\/span><\/b><span data-contrast=\"auto\">,\u00a0and\u00a0average sale prices per square foot also\u00a0<\/span><b><span data-contrast=\"auto\">increased by 10%\u00a0year-over-year\u00a0<\/span><\/b><span data-contrast=\"auto\">(Y-o-Y).<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #0bbfeb;\"><strong>Regional Highlights:<\/strong><\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Western\u00a0markets:<\/span><\/b><span data-contrast=\"auto\">\u00a0California\u2019s\u00a0<\/span><span data-contrast=\"auto\">Orange County, Los Angeles and Bay Area\u00a0occupied\u00a0the\u00a0national\u00a0podium for\u00a0in-place industrial rents,\u00a0despite deflating price growth.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Midwestern markets:\u00a0<\/span><\/b><span data-contrast=\"auto\">Detroit led the region\u00a0in 2025 industrial sales volume at\u00a0$4.8\u00a0billion, followed by Chicago\u2019s\u00a0$2.8 billion\u00a0and\u00a0the Twin Cities with\u00a0$1.4 billion.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Southern markets:<\/span><\/b><span data-contrast=\"auto\">\u00a0The Southern markets included in our study\u00a0logged\u00a0close to\u00a0$18\u00a0billion\u00a0in industrial sales throughout 2025, with Dallas-Fort Worth accounting for more than\u00a0$7 billion\u00a0of that\u00a0total.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\u00b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u00b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Northeastern markets:\u00a0<\/span><\/b><span data-contrast=\"auto\">Vacancies in Philadelphia rested around 8%\u00a0in December\u00a0\u2014 the same rate logged at the start of the year \u2014 while Bridgeport, Conn.,\u00a0still boasts one of the lowest vacancy rates nationwide.<\/span><\/li>\n<\/ul>\n<p><span class=\"TextRun SCXW165331562 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW165331562 BCX0\">For industrial real estate, 2026 promises to be a transformative year shaped by shifting policy and\u00a0<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">changes in industrial development.<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">\u00a0With vacancies beginning to plateau after the\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW165331562 BCX0\">supply<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">\u00a0glut and absorption lag of p<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">revious<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">\u00a0<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">years,\u00a0<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">site selection is turning into a key factor in construction of new stock. Read more in our<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">\u00a0U.S.<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">\u00a0industrial\u00a0<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">market\u00a0<\/span><span class=\"NormalTextRun SCXW165331562 BCX0\">report below.<\/span><\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Trends &amp; Industry News<\/span><\/h3>\n<h2><span class=\"TextRun SCXW185825939 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW185825939 BCX0\">Supply Pipeline Priorities Shift<\/span><\/span><\/h2>\n<p><span data-contrast=\"auto\">Tariff uncertainty will likely play a smaller part in the industrial sector in 2026, despite the uncertainty of policy shifts and increased material costs likely manifesting in future developments. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">At the same time, the U.S.-Mexico-Canada Agreement (USMCA) is due for review in July this year, creating cause for further anxiety for industrial developers and operators. All three countries would have to agree to extend the agreement for another 16 years, whereas a failure to reach an agreement would result in a 10-year gap before the USMCA is annulled. Still, the prospect of a shortened and potentially sunsetting trade agreement would certainly give pause to long-term plans in industrial, given that much investment activity in the sector is now focused on repositioning supply chains and nearshoring production capacity.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Industrial pipelines have declined significantly following record deliveries in 2022 and 2023, and this year is likely to bring the lowest amount of deliveries in the last decade. Still, our analysts expect this pullback to be beneficial for the industrial sector which has contended with high vacancies in most major markets. At 9.2%, the national industrial vacancy rate is now twice as high as it was three years ago and 120 bps higher than it was in January 2025. Still, vacancies have shown signs of leveling in recent months, and we project this plateau to continue in the first half of 2026 before vacancies start to tighten in the second half of the year. Then, as vacancies decline and decreasing interest rates make investment more attractive, the market may see increased enthusiasm for new developments by the end of the year.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<blockquote><p><span class=\"TextRun SCXW237941360 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW237941360 BCX0\">\u201c<span data-olk-copy-source=\"MessageBody\">As we anticipate an increase in construction starts, developments are being met with local concerns of resource consumption and greater scrutiny on ensuring a positive economic impact for the community<\/span>.\u201d<\/span><\/span><span class=\"EOP SCXW237941360 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><strong>Peter Kolaczynski, Director, Yardi Research<\/strong><\/p><\/blockquote>\n<p><span data-contrast=\"auto\">Although construction starts are expected to pick up, our industrial property outlook indicates that the locations for these new developments may be shifting compared to recent years. For example, proximity to population centers and transportation networks has decreased in importance in terms of site selection, with access to power now being cited more often as a critical demand for industrial development. Utility prices are on the rise, and formerly niche, power-intensive categories \u2014 such as data centers and advanced manufacturing \u2014 are poised to further increase peak demand. Consequently, many developers are looking for locations with reliable power networks and cost-effective energy. To drive the point home, a recent survey conducted by Prologis found that 89% of supply chain executives experienced energy-related disruptions in the last 12 months, and 83% believe that the next crisis that supply chains will have to grapple with will be related to energy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The high pace of data center investment will likely continue this year, our industrial real estate report shows. It&#8217;s worth mentioning that there are growing concerns of a bubble in the AI sector, while the question of energy procurement for the new wave of data centers is also difficult to answer. Backlash from local communities in which data center developments were announced began to take shape last year with residents citing power and water usage, as well as the strain on infrastructure, as their primary concerns. This pushback may increase in 2026, subsequently increasing stress while concerns of an emerging data center bubble keep rising.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Rents &amp; Occupancy<\/span><\/h3>\n<h2><span class=\"TextRun SCXW236207734 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW236207734 BCX0\">Atlanta Rents Continue Climb Amid Logistics Wins<\/span><\/span><\/h2>\n<p><span data-contrast=\"auto\">In-place industrial rents averaged $8.87 per square foot nationwide at the end of the year,\u00a0up $0.11 compared to November and increasing by 5.4% annually.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Once again, Atlanta secured the top spot for in-place industrial rent growth among major U.S. markets at 8.8%. Here, population growth and a robust infrastructure network are evidence of the market\u2019s strong suits for industrial investment: Atlanta is among the fastest-growing metro areas by population in recent years and enjoys a central location in a region that\u2019s also experiencing a population boom. It also houses a global airport; access to multiple interstates and railway connections; and proximity to the growing Port of Savannah, Ga., further boosting its status as a logistics hub.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span class=\"TextRun SCXW114335969 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW114335969 BCX0\">At the same time<\/span><span class=\"NormalTextRun SCXW114335969 BCX0\">, the\u00a0<\/span><span class=\"NormalTextRun SCXW114335969 BCX0\">logistics<\/span><span class=\"NormalTextRun SCXW114335969 BCX0\"> advantages that Atlanta presents are also increasing its potential for manufacturing. To that end, Chinese company <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW114335969 BCX0\">WinSun<\/span><span class=\"NormalTextRun SCXW114335969 BCX0\">\u00a0recently selected the metro for its first facility in the U.S. that will span approximately\u00a0<\/span><span class=\"NormalTextRun SCXW114335969 BCX0\">500,000 square feet<\/span><span class=\"NormalTextRun SCXW114335969 BCX0\"> of <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/ga\/atlanta\/\" target=\"_blank\" rel=\"noopener\">Atlanta industrial space<\/a> and bring up to 150 jobs to the area in its first phases.<\/span><\/span><\/p>\n<p><iframe id=\"datawrapper-chart-PIJnL\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Avg rent by Market December 25\" src=\"https:\/\/datawrapper.dwcdn.net\/PIJnL\/1\/\" height=\"789\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p><span data-contrast=\"auto\">After Atlanta, the markets with the fastest rent growth\u00a0according to our industrial real estate report\u00a0include <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/fl\/miami\/\" target=\"_blank\" rel=\"noopener\">Miami<\/a> (8.4% Y-o-Y); Tampa, Fla. (6.7%); Philadelphia (6.7%); and Seattle (6.5%). Conversely, Midwestern markets continued to see sluggish rent growth with St. Louis (2.5%); Kansas City, Mo. (2.6%); and Detroit (2.7%) remaining at the bottom of the list among major U.S. markets in our study.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Overall, the national vacancy sat at 9.2% at the end of December for a 120-bps annual increase. Yet, as owners and occupiers meet in the middle and occupancy continues to rise in newly delivered stock, our industrial real estate outlook shows that a plateau and a gradual decrease in nationwide vacancies is likely to come later in the year if conditions follow the same track.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Supply<\/span><\/h3>\n<h2><span class=\"NormalTextRun SCXW54876835 BCX0\">Texas<\/span><span class=\"NormalTextRun SCXW54876835 BCX0\">\u00a0Development Benefits\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW54876835 BCX0\">F<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW54876835 BCX0\">rom<\/span><span class=\"NormalTextRun SCXW54876835 BCX0\">\u00a0Nearshoring Trends<\/span><\/h2>\n<p><span class=\"TextRun SCXW186089258 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW186089258 BCX0\">At the start of the year,\u00a0<\/span><span class=\"NormalTextRun SCXW186089258 BCX0\">357.4 million square feet<\/span><span class=\"NormalTextRun SCXW186089258 BCX0\"> of industrial space was being built nationwide for a projected inventory expansion of 1.7%. For comparison, throughout 2025, approximately <\/span><span class=\"NormalTextRun SCXW186089258 BCX0\">300 million square feet<\/span><span class=\"NormalTextRun SCXW186089258 BCX0\">\u00a0of new industrial space was delivered according to our industrial market data, although that figure may increase as data for year-end completions trickles in during the first quarter. Even so, completions for last year are on track to be at their lowest level since 2017.<\/span><\/span><\/p>\n<p><iframe id=\"datawrapper-chart-1Y2RF\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Industrial Space Under Construction (Million Sq. Ft.)\" src=\"https:\/\/datawrapper.dwcdn.net\/1Y2RF\/2\/\" height=\"781\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Bar Chart\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p>Looking forward, 2026 is expected to see even more muted construction compared to last year as new starts continue to decelerate. In fact, our industrial real estate market report shows that developments breaking ground in 2025 total just 265 million square feet. Granted, this number may grow in the coming months like delivery data, but it nevertheless points to shrinking pipelines and completions.<span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As a silver lining, Texas remains active in terms of industrial construction, primarily due to the reshoring of manufacturing capacity: In 2025, nearly 25 million square feet of new construction starts broke ground in <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/tx\/dallas\/\" target=\"_blank\" rel=\"noopener\">Dallas<\/a>-Fort Worth, and that figure stood at 23.2 million square feet in Houston \u2014 more than 18% higher compared to 2024. Phoenix landed in third place at 13.1 million, trending downward after being the epicenter of industrial development earlier last year. Austin, Texas, also saw a high level of new developments as a percentage of starts with 5.9 million square feet of space.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Transactions<\/span><\/h3>\n<h2><span class=\"TextRun SCXW200361130 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW200361130 BCX0\">New Jersey Logs Strong Year for Industrial Transactions<\/span><\/span><\/h2>\n<p><span class=\"TextRun SCXW89187951 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW89187951 BCX0\">Our U.S. industrial market report\u00a0<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">indicates<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">\u00a0that l<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">ast year\u2019s industrial transactions totaled\u00a0<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">$76.3 billion<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">, which was\u00a0<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">almost on<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\"> par with the previous year\u2019s <\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">$76.2 billion<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">. Again, delays in data collection will\u00a0<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">likely boost<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\">\u00a02025\u2019s final tally, providing the sector with its strongest year for investment since 2022. In this case, transactions from last year resulted in an average sale price of $135 per square foot, marking a 10% increase compared to 2024. While total sales volumes are neck and neck, less square feet of space\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW89187951 BCX0\">was<\/span><span class=\"NormalTextRun SCXW89187951 BCX0\"> traded in 2025 compared to the previous year.<\/span><\/span><\/p>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/27405082\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/public.flourish.studio\/visualisation\/27405082\/thumbnail\" width=\"100%\" alt=\"chart visualization\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">New Jersey had a strong year in terms of industrial transactions: Sales volume in 2025 reached $2.8 billion in the market, increasing by 8.5% compared to the year prior. Similarly, average sale prices increased by 7.6% in the same timeframe to rest at $226 per square foot. The market\u2019s largest transaction last year took place when Prologis purchased 201 Middlesex Center Blvd., a property within close proximity to Interstate 95, for $166.8 million.<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-TiM5t\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"2025 Year-To-Date Sales (Million)\" src=\"https:\/\/datawrapper.dwcdn.net\/TiM5t\/3\/\" height=\"800\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Split Bars\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p>Despite lagging rent growth and high vacancies, New Jersey maintained its attractiveness for investors that target quality properties amid scarcity of developable land. Of course, a high population density and proximity to major ports also contribute to the market\u2019s potential. The e-commerce boom has also greatly boosted sales figures with average sale prices for New Jersey industrial space more than doubling since 2019.<span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Western Markets<\/span><\/h3>\n<h2><span class=\"TextRun SCXW66558774 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW66558774 BCX0\">Regional Rent Growth Decelerating, but California Markets Maintain Top Spots<\/span><\/span><\/h2>\n<p><span data-contrast=\"auto\">Industrial vacancy rates across the region remained mixed at the close of 2025, with certain markets sitting closer to occupancy equilibrium than others. The Bay Area remains the tightest market in the West at 7.9% (up 70 bps Y-o-Y), followed by the Inland Empire at 8.4% (up 80 bps Y-o-Y). Meanwhile, vacancy in Orange County saw a more sizable annual increase of 430 bps to bring its rate to 8.5% as of December. Los Angeles also settled at 8.5%, establishing it as the final Western market to remain below the 9.2% national average. At a distance, <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/co\/denver\/\" target=\"_blank\" rel=\"noopener\">Denver industrial properties<\/a> recorded the region\u2019s highest average vacancy rate at 12.5% following a 140-bps annual increase.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Western U.S. maintained its status as the country\u2019s premier high-cost lease destination through December, even as the rapid rent growth of the current cycle kept showing signs of moderating. A familiar trio of California markets \u2014 Orange County, Los Angeles, and the Bay Area \u2014 currently occupy the national podium for the most expensive industrial space, with average in-place rates of $17.42, $15.54, and $14.66 per square foot, respectively. The region\u2019s pricing dominance is further underscored by its footprint in the national ranking: Of the 13 major U.S. markets that recorded average rents above the $8.87 national benchmark at year-end, eight are located in the West, significantly outperforming the Northeast (three markets) and the South (two markets).<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-AcHUP\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"West Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/AcHUP\/2\/\" height=\"570\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p><span data-contrast=\"auto\">In this region, capital\u00a0markets\u00a0activity in 2025 was headlined by <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/az\/phoenix\/\" target=\"_blank\" rel=\"noopener\">Phoenix<\/a>, where industrial sale totals for the year reached $3.7 billion \u2014 surpassing all other regional markets by a significant margin. Los Angeles followed with $2.3 billion in volume, while California\u2019s Inland Empire recorded $2.1 billion. Although total sales exceeded previous-year levels in most markets nationally, San Francisco and Los Angeles were notable exceptions with transaction volumes dropping by 65% and 6% Y-o-Y, respectively. Regional sale prices remain generally elevated, but have begun to show signs of stagnation or slight retractions in several major hubs, including Portland, Ore.; Orange County, Calif.; and the Inland Empire, Calif.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Regarding the regional pipeline, the most significant increases in industrial construction were recorded in the Bay Area and Portland. More precisely, construction activity in the Bay Area grew from 2.5 million square feet at the end of 2024 to 3.6 million square feet currently, whereas <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/or\/portland\/\" target=\"_blank\" rel=\"noopener\">Portland industrial space<\/a> in the pipeline expanded from 2.5 million to 3.5 million square feet in the same period. Despite these gains, these development totals remain diminutive compared to the massive volumes seen in other U.S. regions as persistent high costs and limited land availability continue to squeeze industrial development starts across the West.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Midwestern Markets<\/span><\/h3>\n<h2><span class=\"TextRun SCXW100515016 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW100515016 BCX0\">Detroit, Chicago &amp; Twin Cities Lead Region in 2025 Industrial Sales Volume<\/span><\/span><\/h2>\n<p><span data-contrast=\"auto\">At the end of December, Midwestern markets\u00a0remained\u00a0the most affordable in the nation for industrial leases. In fact, Kansas City, Mo., currently offers the\u00a0second-cheapest\u00a0in-place rents in the country at $5.20 per square foot, followed closely by St. Louis ($5.28) and Indianapolis ($5.29). Not far behind, Cincinnati; Columbus, Ohio; and Chicago also\u00a0maintain\u00a0highly competitive affordability profiles, but Detroit and Minneapolis-St. Paul have broken away from the regional pack: By the end of December, these two markets commanded significantly higher average rates of $7.49 and $7.53 per square foot, respectively.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As usual, development activity across the region experienced a seasonal deceleration in December as winter conditions and a wave of year-end deliveries tempered the pipeline. Yet, while several markets saw their under-construction totals remain level or contract as new supply hit the inventory, industrial construction continues to be robust in specific regional hubs. The Minneapolis-St. Paul market stands out in this regard as space currently under construction here has increased threefold compared to December 2024.<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-og0wK\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Midwest Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/og0wK\/2\/\" height=\"495\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p>Following another month-over-month dip, industrial vacancies in <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/mo\/saint-louis\/\" target=\"_blank\" rel=\"noopener\">St. Louis<\/a> dropped below 6% by the end of December, establishing it as the third-tightest industrial market in the country. This positioning follows a significant 160-bps Y-o-Y contraction. Elsewhere in the region, occupancy stability remains a moving target: The Minneapolis-St. Paul market saw vacancy climb to 8.4% (up 200 bps Y-o-Y), whereas Detroit\u2019s vacancy rate is a relatively low 6.7%, despite a 210-bps annual increase.<span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Investor interest in the Midwest accelerated through 2025, driven by the region&#8217;s expanding reshoring potential and its critical role in the national logistics network. Detroit led the region with a sizable $4.8 billion in industrial sales volume \u2014 a figure bolstered significantly by the $2 billion sale of the GM battery plant in Lansing, Mich. Chicago and Minneapolis-St. Paul followed with $2.8 billion and $1.4 billion in transactions, respectively. Notably, Detroit; Kansas City, Mo.; and Indianapolis recorded the largest sales volume increases nationwide compared to 2024, further demonstrating the shift in institutional capital toward the region.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Southern Markets<\/span><\/h3>\n<h2><span class=\"NormalTextRun SCXW42174637 BCX0\">Major Southern Markets Log $<\/span><span class=\"NormalTextRun SCXW42174637 BCX0\">18<\/span><span class=\"NormalTextRun SCXW42174637 BCX0\">\u00a0Billion\u00a0<\/span><span class=\"NormalTextRun SCXW42174637 BCX0\">in Industrial Sales in 2025<\/span><\/h2>\n<p><span data-contrast=\"auto\">Despite a general dip in construction starts toward the end of the year, a wave of new projects totaling close to 2 million square feet in Charlotte, N.C., brought that market\u2019s total pipeline to 8.3 million square feet by the close of December. This year-end surge means the <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/nc\/charlotte\/\" target=\"_blank\" rel=\"noopener\">Charlotte industrial market<\/a> now has 32% more space under construction compared to the end of 2024, representing a total inventory expansion of approximately 2.4%. Otherwise, other major Southern hubs saw slight month-over-month contractions in their respective pipelines as deliveries outpaced new starts, but Dallas-Fort Worth and Houston continue to lead the nation in terms of total industrial space currently underway.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Across the entirety of 2025, the Southern markets included in our study notched nearly $18 billion in industrial transactions, reflecting a highly liquid investment landscape. In particular, the Dallas-Fort Worth Metroplex was responsible for more than one-third of this regional total, surpassing $7 billion in sales by the end of December. Houston and Atlanta followed in terms of total volume, recording $2.9 billion and $2.5 billion in transactions, respectively. However, the Charlotte market boasted the largest annual increase in sales volume regionally at 159%, with totals rising from $781 million in 2024 to more than $2 billion in 2025.<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-rMF8P\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"South Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/rMF8P\/2\/\" height=\"528\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p>Despite robust investor appetite and construction activity, numerous Southern markets continued to face elevated vacancy rates. Memphis registered the highest vacancy rate in our U.S. industrial market report at the end of December at 12.7%, declining slightly from the previous month but still 410 bps higher annually. Additional markets including Baltimore; Miami; Dallas-Fort Worth; and Tampa also recorded vacancy rates exceeding the national benchmark of 9.2%. Conversely, Atlanta&#8217;s rate settled at 8.1% at year&#8217;s end following several months of stabilization, while Houston commanded the fourth-lowest vacancy rate nationwide at 6.1%.<span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">At the conclusion of 2025, in-place industrial rents throughout the South maintained their upward trajectory. Miami retained its position as the region&#8217;s most expensive market at $13.41 per square foot, representing an 8.4% increase compared to year-ago rates. <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/md\/baltimore-city\/\" target=\"_blank\" rel=\"noopener\">Baltimore<\/a> was the only other Southern market with in-place rents surpassing the national average at $9.09 per square foot. Tampa followed at $8.71, trailed by Charlotte&#8217;s $7.52 and Houston&#8217;s $7.37.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Northeastern Markets<\/span><\/h3>\n<h2><span class=\"NormalTextRun SCXW154447079 BCX0\">Philadelphia Vacanc<\/span><span class=\"NormalTextRun SCXW154447079 BCX0\">y Rate Stabilizes Y<\/span><span class=\"NormalTextRun SCXW154447079 BCX0\">ear-over-Year<\/span><\/h2>\n<p><span data-contrast=\"auto\">New Jersey industrial transactions in 2025 averaged $226 per square foot, establishing it as the region&#8217;s most expensive market for investment and the sixth-priciest nationwide. Boston also positioned itself in the upper half of national rankings in terms of average sale prices at $171 per square foot, while Philadelphia stood just below the national average at $130 per square foot. Conversely, Bridgeport, Conn. industrial transactions resulted in an average price of $69 per square foot, securing its position as the fourth-most-affordable market in our industrial real estate study.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In terms of in-place leases, <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/pa\/philadelphia\/\" target=\"_blank\" rel=\"noopener\">Philadelphia<\/a> remained the region&#8217;s most accessible major market at the conclusion of 2025. Leases here averaged $8.60 per square foot, trailing the national average of $8.87. Notably, in-place leases in Bridgeport surpassed the $10-per-square-foot threshold in December, climbing 6% Y-o-Y, while rates in Boston also advanced 5.6% annually to reach $11.94 per square foot.<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-bu84A\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Northeast Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/bu84A\/2\/\" height=\"372\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<p>However, vacancies throughout the region remained mixed: Boston\u2019s 11% rate positioned it toward the upper end of the national scale following a 160-basis-point yearly increase. Similarly, Philadelphia\u2019s vacancies hovered around 8% at year\u2019s end, which was roughly on par with rates recorded at the start of 2025. And, Bridgeport, Conn., still maintained one of the nation\u2019s tightest leasing landscapes with a vacancy rate of just 5.8%, although this figure represented a 140-bps increase compared to December 2024.<span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Additionally, new deliveries appeared unlikely to contribute meaningfully to vacancy pressures in the market as the pipeline remained stable at just more than 1.5 million square feet \u2014 unchanged from two months prior \u2014 indicating an absence of new deliveries or construction starts. Moreover, projected market expansions from construction currently underway across the region hovered around 1% of existing stock, reflecting subdued construction activity.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #0bbfeb;\">Economic Indicators<\/span><\/h3>\n<h2><span class=\"NormalTextRun SCXW260106636 BCX0\">E-Commerce\u00a0<\/span><span class=\"NormalTextRun SCXW260106636 BCX0\">Pick<\/span><span class=\"NormalTextRun SCXW260106636 BCX0\">s<\/span><span class=\"NormalTextRun SCXW260106636 BCX0\">\u00a0Up in Second Half of 2025<\/span><\/h2>\n<p><span class=\"TextRun SCXW260463661 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW260463661 BCX0\">While the recent government shutdown has led to delays in some\u00a0<\/span><span class=\"NormalTextRun SCXW260463661 BCX0\">economic data releases, e-commerce sales figures have caught up and are back on schedule. <\/span><span class=\"NormalTextRun SCXW260463661 BCX0\">E-commerce sales in Q3 2025 totaled\u00a0<\/span><span class=\"NormalTextRun SCXW260463661 BCX0\">$<\/span><span class=\"NormalTextRun SCXW260463661 BCX0\">310 billion<\/span><span class=\"NormalTextRun SCXW260463661 BCX0\">,\u00a0<\/span><span class=\"NormalTextRun SCXW260463661 BCX0\">up 1.9% quarter-over-quarter and 5.1% Y-o-Y.<\/span><\/span><span class=\"EOP SCXW260463661 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In Q3, e-commerce sales accounted for 19.2% of core retail sales for the highest share since Q2 2020 at the height of online orders during the pandemic. Prior to that, e-commerce sales and the share they represented of the total retail sales grew at a relatively consistent rate, later becoming more uneven as supply chains and customer demand shifted.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">\u00a0<\/span><\/p>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/27404939\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/public.flourish.studio\/visualisation\/27404939\/thumbnail\" width=\"100%\" alt=\"chart visualization\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">Lastly, early data from the private sector indicates that e-commerce sales were also strong during the holiday season. Estimates from the National Retail Foundation showcase resilient consumer spending with sales between November 1 and December 31 increasing 4.1% Y-o-Y. Visa and Mastercard data corroborates this growth, noting that e-commerce sales were up 7% annually.<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-IO1eN\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Economic Indicators September 2025\" src=\"https:\/\/datawrapper.dwcdn.net\/IO1eN\/1\/\" height=\"532\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n<h4><span style=\"color: #0bbfeb;\">Methodology<\/span><\/h4>\n<p>The monthly CommercialCafe national industrial real estate report considers data recorded throughout the course of 12 months and tracks top U.S. industrial markets with a focus on average rents; vacancies (including subleases, but excluding owner-occupied properties); deals closed; pipeline yield; forecasts; and the economic indicators most relevant to the performance of the industrial sector. Listing rate and occupancy information was based on Yardi Research data.<\/p>\n<ul>\n<li><strong>Average Rents<\/strong>: Provided by Yardi Market Expert, a cutting-edge service that uses anonymized and aggregated data from other Yardi platforms to provide the most accurate rental and expense information available.<\/li>\n<\/ul>\n<ul>\n<li><strong>Vacancy<\/strong>: The total square feet vacant in a market, including subleases, divided by the total square feet of industrial space in that market. Owner-occupied buildings are not included in vacancy calculations.<\/li>\n<\/ul>\n<p><strong>Stages of the supply pipeline:\u00a0<\/strong><\/p>\n<ul>\n<li><strong>Planned:<\/strong>\u00a0Buildings that are currently in the process of acquiring zoning approval and\u00a0permits, but\u00a0have not yet begun construction.<\/li>\n<\/ul>\n<ul>\n<li><strong>Under Construction<\/strong>: Buildings for which construction and excavation\u00a0has\u00a0begun.<\/li>\n<\/ul>\n<p><strong>Sales volume<\/strong>\u00a0and\u00a0<strong>price-per-square-foot calculations<\/strong>\u00a0for portfolio transactions or those with unpublished dollar values are estimated using sales comps based on\u00a0similar sales\u00a0in the market and submarket, use type, location and asset ratings, sale\u00a0date\u00a0and property size.<\/p>\n<p><strong>Year-to-date metrics and data<\/strong>\u00a0include the\u00a0time period\u00a0between January 1 of the current year through the month prior to publishing the report.<\/p>\n<p>Market boundaries in the\u00a0CommercialCafe\u00a0industrial report coincide with those defined by the\u00a0<a href=\"https:\/\/www.commercialcafe.com\/commercial-markets\/\" target=\"_blank\" rel=\"noopener\">CommercialCafe Markets Map<\/a>\u00a0and may differ from regional boundaries defined by other sources.<\/p>\n<h4><span style=\"color: #0bbfeb;\"><strong>Fair Use &amp; Redistribution<\/strong>\u00a0<\/span><\/h4>\n<p>We encourage you and freely grant you permission to reuse, host, or repost the research, graphics, and images presented in this article. When doing so, we kindly ask that you credit our research by linking to CommercialCafe.com or this page so that your readers can learn more about this project, the research behind it and its\u00a0methodology. For more in-depth, customized data, please contact us at\u00a0<a href=\"mailto:prinfo@commercialcafe.com\" target=\"_blank\" rel=\"noopener\">prinfo@commercialcafe.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With volatility stemming from policy shifts and energy security becoming a primary concern for many industrial developers, 2026 will likely be a pivotal year for the industry as vacancies plateau and construction pivots.<\/p>\n","protected":false},"author":71,"featured_media":46765,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[42,4014,41],"tags":[],"class_list":["post-47099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-reports","category-featured","category-industrial","wpautop"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S. National Industrial Report January 2026 | CommercialCafe<\/title>\n<meta name=\"description\" content=\"2026 promises to be a crucial year for industrial real estate. 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