{"id":52987,"date":"2026-10-27T07:25:46","date_gmt":"2026-10-27T04:25:46","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=52987"},"modified":"2026-10-27T15:32:14","modified_gmt":"2026-10-27T12:32:14","slug":"national-industrial-report","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/national-industrial-report\/","title":{"rendered":"October 2026 Industrial Report: Volume of Construction Starts Rises Despite Ongoing Challenges"},"content":{"rendered":"<p><span style=\"color: #0bbfeb;\"><strong>Key Takeaways:\u00a0<\/strong><\/span><\/p>\n<ul>\n<li>Year to date, the 2026 pipeline has produced 274 million square feet of industrial starts.<\/li>\n<li>Dallas and Miami record highest rent growth in the last 12 months among top U.S. markets.<\/li>\n<li>Owner-occupied projects make up nearly one-third of industrial starts in 2026, totaling 76.1 million square feet across the first three quarters.<\/li>\n<li>Chicago logs $4.4 billion in year-to-date industrial sales, second only to Dallas ($5 billion).<\/li>\n<li>Warehouse employment continues to fall despite growth in the logistics sector as operators embrace automation.<\/li>\n<\/ul>\n<p><span style=\"color: #0bbfeb;\"><strong>Regional Highlights:\u00a0<\/strong><\/span><\/p>\n<ul>\n<li>Year-to-date industrial sales across California\u2019s Bay Area rose 40% month-over-month (M-o-M) to reach $2.5 billion. Year-over-year, volume grew by 269%.<\/li>\n<li>Indianapolis pipeline hits 12.3 million square feet following 29% M-o-M<\/li>\n<li>Miami\u2019s $3-per-square-foot premium on new leases is second highest nationwide, outranked only by Bridgeport, Conn.<\/li>\n<li>Total transaction volume jumps 43% M-o-M in Philadelphia, reaching $2.16 billion.<\/li>\n<\/ul>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Trends &amp; Industry News\u00a0<\/span><\/h3>\n<h2><span data-contrast=\"none\">2026 Pipeline Produces 274 Million Square Feet of Industrial Starts Across <\/span><span data-contrast=\"none\">First <\/span><span data-contrast=\"none\">Three <\/span><span data-contrast=\"none\">Quarters<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<p>Following years of comparatively reduced construction activity, the industrial pipeline seems poised for a significant expansion in 2026. After record-setting levels of development in 2022, the industrial pipeline went through a period of cooldown, reaching its lowest point in 2024, when starts on industrial projects totaled 306.8 million square feet. That was followed by a more substantial output of 342.1 million square feet in 2025.<\/p>\n<p>For comparison, Yardi Matrix data already shows a total of 274.4 million square feet of industrial projects that have broken ground within the first three quarters of this year. Additionally, estimates suggest that 2026 could feature one of the highest numbers of starts in recent years.<\/p>\n<p>At the same time, current industrial projects face an expanding list of challenges. Chief among these is power availability, as revealed by a survey from the Site Selectors Guild, in which 79% of respondents indicated that power access or constraints on it can essentially determine a project\u2019s feasibility and affect a series of decisions regarding its development.<\/p>\n<blockquote><p><i><span data-contrast=\"auto\">\u201cIn past industrial cycles, power availability was a checkbox item. Now, speed-to-power is the factor that makes or breaks projects in digital infrastructure, advanced and heavy manufacturing, and metals processing.\u201d<\/span><\/i><\/p>\n<p><b><span data-contrast=\"auto\">Peter Kolaczynski, Director, Yardi Research<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/blockquote>\n<p>In addition, concerns regarding power utilization, traffic flow, air quality, and the loss of open space for other land uses have led to growing opposition from local communities and governments on many planned industrial projects, consequently also lengthening the entitlement process.<\/p>\n<p>Of course, there are plenty of challenges left even after projects manage to break ground. For one, escalating construction and energy costs continue to squeeze development budgets. According to the Bureau of Labor Statistics\u2019 September Producer Price Index, input prices for new non-residential construction rose 11.9% year-over-year (Y-o-Y), while overall non-residential construction costs increased by 5.4%.<\/p>\n<p>At the same time, tariffs have also severely driven up metal expenses: Aluminum is up 25% Y-o-Y, steel has climbed 28%, and copper and brass have surged 30%. Furthermore, diesel prices \u2014 which have spiked 70% since the outbreak of the Iran War \u2014 heavily affect site work and material transit across the supply chain.<\/p>\n<p>Despite this flurry of hurdles, the industrial outlook for 2026 is largely positive due to continued demand for new warehouses, manufacturing and logistics spaces. Yet, while construction starts are expected to continue their increase for the remainder of the year, some of the headwinds listed above are likely to put a damper on overall supply and ultimately result in growing rent rates.<\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Rents &amp; Occupancy\u00a0<\/span><\/h3>\n<h2>Dallas &amp; Miami Lead Nationally for Rent Growth in Last 12 Months<\/h2>\n<p>Nationwide industrial in-place rents averaged $9.33 per square foot in September, rising $.02 M-o-M and 5.3% annually. While Atlanta dropped to third place in terms of in-place rent growth, markets across the Sun Belt still lead this list with Dallas boasting the most significant gains during the last 12 months (7.9%), followed by Miami (7.5%).<\/p>\n<p>To that end, Miami maintains its strong trajectory from 2025 into 2026, fueled by Latin American and Caribbean trade through its port; steady domestic migration to Florida from northern states; and high land costs driven by local geographic limits.<\/p>\n<p>Nationally, the industrial vacancy rate hit 9.7% in September, up 40 basis points (bps) over the previous month and 20 bps Y-o-Y. Meanwhile, the premium for new leases dropped to $.80 to bring the average new lease to $10.13 per square foot \u2014 narrowing the gap by $.48 in the last year and $1.40 in two years. Despite this national compression, select markets maintain wide spreads, led by Bridgeport, Conn., with a $3.98 premium per square foot and followed by Miami ($2.79) and Dallas at ($2.48).<\/p>\n<p><iframe id=\"datawrapper-chart-hRYET\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Avg rent by Market September 2026\" src=\"https:\/\/datawrapper.dwcdn.net\/hRYET\/2\/\" height=\"1357\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Supply\u00a0<\/span><\/h3>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Owner-Occupied Projects Make Up Nearly <\/span><span data-contrast=\"none\">One-<\/span><span data-contrast=\"none\">Third of Industrial Starts<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p>The national pipeline currently holds roughly 463.3 million square feet of industrial space \u2014 a significant expansion on the 357.4 million square feet of space under construction in its stock at the start of the year.<\/p>\n<p>Conversely, 2024 saw the lowest number of industrial projects breaking ground in recent years, but also a significant increase in owner-occupied developments with roughly 30.6% of starts that year falling under that label, according to Yardi Matrix.<\/p>\n<p>As the pace of construction has picked up since then, the percentage of owner-occupied projects held steady, making up 29.7% of starts in 2025 and 27% so far in 2026.<\/p>\n<p>In terms of total square footage, that translates into 103.2 million square feet of owner-occupied project starts in 2025 for the second-highest level across the last 10 years, behind only 2020\u2019s 108.3 million square feet. And, 2026 is primed to be another great year for these types of developments as 76.1 million square feet of owner-occupied projects have already broken ground in the first three quarters of the year<span data-contrast=\"auto\">. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-bQdi7\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Industrial Space Under Construction (Million Sq. Ft.)\" src=\"https:\/\/datawrapper.dwcdn.net\/bQdi7\/2\/\" height=\"781\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Bar Chart\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Transactions\u00a0<\/span><\/h3>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Chicago Logs $4.4 Billion <\/span><span data-contrast=\"none\">in Year-to-Date Industrial Sales\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p>According to data collected by Yardi Matrix, roughly $74.4 billion worth of industrial assets were traded through September with an average price of $140 per square foot.<\/p>\n<p>Despite its sheer scale, clear logistics advantage and consumer reach, Chicago\u2019s industrial market has attracted relatively modest investor interest throughout the last four years, ranking no higher than fifth for investment volume across this period. Nonetheless, in 2026, Chicago managed to complete $4.4 billion in transactions in the first three quarters, second only to Dallas\u2019 $5 billion total.<\/p>\n<p>In terms of pricing averages, it\u2019s worth noting that outlier sales can have a significant influence. For instance, one single transaction involving a data center in Chicago\u2019s Elk Grove Village made up 17% of the market\u2019s total volume: The $750 million that GI Partners spent on the property boosted average sale prices in Chicago to $123 per square foot, up 34% Y-o-Y. However, even if we exclude transactions involving data centers, valuation for industrial assets in Chicago is on the rise in 2026 with average prices for all other industrial properties at $101 per square foot \u2014 a 10.3% increase compared to 2025. <span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-KiAXv\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"2026 Year-To-Date Sales (Millions)\" src=\"https:\/\/datawrapper.dwcdn.net\/KiAXv\/1\/\" height=\"781\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Stacked Bars\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Western Markets\u00a0<\/span><\/h3>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Bay Area<\/span><span data-contrast=\"none\">, Calif.,<\/span><span data-contrast=\"none\"> Transactions Jump 269% Y-o-Y<\/span><span data-contrast=\"none\">,<\/span><span data-contrast=\"none\"> to<\/span> <span data-contrast=\"none\">$2.5 Billion<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p>While Orange County, Calif.\u2019s overall pipeline is relatively small compared to other Western markets, it still boasted the most noteworthy increase throughout September (47%) with the Goodman Commerce Center Cypress &#8211; Building 3 set to add 191,894 square feet of industrial space to the market.<\/p>\n<p>Meanwhile, Inland Empire, Calif., recorded the strongest year-over-year growth (233%), currently totaling roughly 12.4 million square feet of space under construction. That\u2019s a distant second to Phoenix, which still dominates the region in terms of industrial development with 31 million square feet. Here, construction is underway for Building B3\/B4 of the LogistiCenterSM @ Copperwing, a 1.3-million-square-foot <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/az\/phoenix\/\">industrial space in Phoenix<\/a> developed by Dermody Properties and expected to come online in the third quarter of 2027.<\/p>\n<p><span data-contrast=\"auto\">Back in California\u2019s Inland Empire, average industrial rents (which stood at $12.57 as of September) witnessed a 7% rise across a 12-month period with new leases commanding a $.40 premium compared to in-place agreements. Notably, premiums are much higher across California\u2019s Bay Area and Central Valley (just more than $1 per square foot), keeping in mind the wildly different average rents within the two markets. At the same time, there has been minimal or no movement on rent pricing for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/ca\/los-angeles\/\">industrial spaces in Los Angeles<\/a> and Phoenix. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-myGrB\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"West Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/myGrB\/1\/\" height=\"570\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<p>Bay Area rates in California continued to climb, recording a 60-bps uptick from the previous month and a 160-bps increase year-over-year to currently match the nationwide vacancy average of 9.7%. At the opposite end, vacancies went down 90 bps across California\u2019s Inland Empire month-over-month, whereas in nearby Orange County, rates fell 160 bps Y-o-Y.<\/p>\n<p>Back in the Bay Area, year-to-date industrial sales jumped 40% from the previous month to reach $2.5 billion. Year-over-year, the increase is even more pronounced as the market\u2019s volume grew 269% from a reference point of $687 million last September. Likewise, Inland Empire, Calif., valuations rose 10% M-o-M with average prices per square foot reaching $178. Further north, the average price per square foot of <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/co\/denver\/\">industrial space in Denver<\/a> went up by nearly 9% in the same period to land at $142.<\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Midwestern Markets\u00a0<\/span><\/h3>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Indianapolis Pipeline Hits 12.3 Million Square Feet Following 29% M-o-M Increase<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p>Transactions for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/il\/chicago\/\">warehouse and industrial spaces in Chicago<\/a> since the start of the year totaled $4.4 billion, up 40% from last month and 133% Y-o-Y.<\/p>\n<p>But, Indianapolis sales volume rose even more year-over-year (198%) to total roughly $1.4 billion as of September 2026. Major deals in this market since the start of the year include the sale of the 1.1-million-square-foot Subaru at Park 267 for $137 million, as well as the $137 million deal for a much smaller property (208,906 square feet) in Whitestown, Ind., acquired by LaSalle Investment. In addition, MDH Partners paid $72 million for 70 Connect III, a 1-million-square-foot <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/in\/indianapolis\/\">industrial space in Indianapolis<\/a>\u2019 eastern suburb of Greenfield, Ind.<\/p>\n<p>Indianapolis industrial construction also rose by 29% throughout September and 122% Y-o-Y with Buildings V &amp; VI of Indianapolis Logistics Park Northwest being a recent addition to its list of projects under construction.<\/p>\n<p><span data-contrast=\"auto\">Meanwhile, Cincinnati\u2019s construction activity recorded a significant boost month-over-month with the addition of the 715,736-square-foot Tetris Project and 220,000-square-foot Project Mila &#8211; Building 4 to its pipeline, although the output is significantly reduced when viewed on a year-over-year basis (-70%). <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-9YdT9\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Midwest Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/9YdT9\/1\/\" height=\"495\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<p>Staying in Ohio, rents for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/oh\/columbus\/\">industrial spaces in Columbus<\/a> increased roughly 3% M-o-M to $5.93 with a $.20 premium on new leases. Even so, Cincinnati and Indianapolis currently hold some of the highest premiums for new industrial leases within the Midwest, but they\u2019re still nearly half of what Southern markets such as Miami; Dallas; or Nashville, Tenn., charge for new leases.<\/p>\n<p>In terms of vacancies, Indianapolis and Columbus, Ohio, stood out for year-over-year decreases in their rates, both firmly below the current 9.7% nationwide average. In contrast, vacancy rates for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/mo\/saint-louis\/\">industrial spaces in St. Louis<\/a> and <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/mo\/kansas-city\/\">Kansas City, Mo.<\/a>, rose by 170 and 290 bps Y-o-Y, respectively.<\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Southern Markets\u00a0<\/span><\/h3>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Miami Premiums for New Leases <\/span><span data-contrast=\"none\">Approach<\/span> <span data-contrast=\"none\">$3 Per Square <\/span>Foot \u2014 2nd Highest Nationally<\/h2>\n<p>Rents for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/fl\/miami\/\">industrial spaces in Miami<\/a> reached $14.18 per square foot following a 7.5% increase across a 12-month period \u2014 the second highest within the region after Dallas (7.9%). Similarly, leases for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/md\/baltimore\/\">Baltimore warehouse and industrial spaces<\/a> are valued at roughly $9.90 per square foot with new rent agreements commanding a $.40 premium when compared to in-place rents. In fact, with the exception of Tampa, Fla.; Baltimore; and Memphis, Tenn., all other Southern markets have new lease premiums in excess of $1 with rents signed in September in Miami costing nearly $3 more per square foot than leases agreed upon in the last 12 months.<\/p>\n<p>Otherwise, in Atlanta, industrial vacancies have remained fairly stable when compared to the movement visible across other Southern markets: Year-over-year, there\u2019s been only a 20-bps uptick. Atlanta\u2019s 8.6% rate is also the third lowest within the region and below the national average (9.7%). \u00a0 <span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-L13yQ\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"South Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/L13yQ\/1\/\" height=\"528\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<p>However, roughly 21.3 million square feet of <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/ga\/atlanta\/\">industrial space in Atlanta<\/a> is currently under development. In fact, the market boasted a 25% increase in September and a 97% Y-o-Y jump with projects in the pipeline now making up 3.5% of stock. Plus, several 1-million-square-foot projects are in the works, including a logistics facility developed by Hillwood in Jackson, Ga., (Riverview Business Park &#8211; Building 300); the I-85 South Crossing in Grantville, Ga.; and Digital Realty\u2019s ATL-15 data center in Forest Park, Ga.<\/p>\n<p>Further south, Tampa, Fla.\u2019s pipeline is relatively modest compared to its Southern counterparts, currently standing at 3 million square feet. Nevertheless, it has witnessed a significant expansion compared to the previous month (29%). Specifically, the 922,800-square-foot Central Florida Integrated Logistics Park &#8211; Building 4A and 397,500-square-foot Park 4 at Lakeland &#8211; Phase I are among the most substantial additions to this market\u2019s pipeline.<\/p>\n<p><span data-contrast=\"auto\">Similarly, year-to-date sales for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/nc\/charlotte\/\">industrial spaces in Charlotte, N.C.,<\/a> reached $1.86 billion in September, rising 52% M-o-M and 70% Y-o-Y. Not far behind, transaction volume for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/tn\/nashville\/\">industrial spaces in Nashville, Tenn.,<\/a> also grew by 35% compared to the previous month, currently totaling $850 million, with a price per square foot of around $136. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Northeastern Markets\u00a0<\/span><\/h3>\n<h2>Bridgeport, Conn., Vacancies Reach 7.1% in September After 100-bps M-o-M Uptick\u00a0 <span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Bridgeport<\/span><span data-contrast=\"auto\">, Conn.,<\/span><span data-contrast=\"auto\"> industrial vacancy rates reached 7.1% in September, recording a 160-bps growth year-over-year. Along with New Jersey, vacancies for <\/span><a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/ct\/bridgeport\/\"><span data-contrast=\"none\">Bridgeport<\/span><span data-contrast=\"none\">, Conn.,<\/span><span data-contrast=\"none\"> industrial spaces<\/span><\/a><span data-contrast=\"auto\"> remain below the nationwide average.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In this region, <\/span><span data-contrast=\"auto\">Philadelphia was the only Northeastern market that continued to add projects to its pipeline last month, expanding it by roughly 17%. <\/span><span data-contrast=\"auto\">In particular, p<\/span><span data-contrast=\"auto\">P<\/span><span data-contrast=\"auto\">rojects such as the 717,602-square<\/span> <span data-contrast=\"auto\">&#8211;<\/span><span data-contrast=\"auto\">foot DataOne <\/span><span data-contrast=\"auto\">&#8211; <\/span><span data-contrast=\"auto\">Buildings 1 &amp; 2 recently broke ground in Vineland, N.J.,<\/span><span data-contrast=\"auto\"> and are<\/span><span data-contrast=\"auto\"> part of a pipeline that now totals 9.2 million square feet and has grown 75% <\/span><span data-contrast=\"auto\">Y-o-Y<\/span><span data-contrast=\"auto\">year-over-year<\/span><span data-contrast=\"auto\">.\u00a0\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-DDFK5\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Northeast Regional Highlights\" src=\"https:\/\/datawrapper.dwcdn.net\/DDFK5\/1\/\" height=\"372\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<p>Also in Philadelphia, valuations for industrial year-to-date sales rose by 17% M-o-M to $166 per square foot. Total transaction volume also jumped 43% in September to reach $2.16 billion and record an impressive 154% Y-o-Y increase. Notable deals closed since the start of 2026 include the sale of a 518,140-square-foot property in Berks County acquired by U.S. General Services Administration for $87.4 million, as well as the $87 million sale of the 345,500-square-foot Navy Yard at 4300 S. 26th St.<\/p>\n<p>Likewise, rents for <a href=\"https:\/\/www.commercialcafe.com\/industrial\/us\/nj\/\">industrial spaces in New Jersey<\/a> rose nearly 7% across a 12-month period, settling at $13.04 per square foot in September. In this case, premiums are roughly double the national average with new leases $1.50 costlier per square foot than in-place rents. However, Bridgeport, Conn., premiums are the highest across all major U.S. markets, charging $4 more per square foot for new agreements compared to leases signed in the last 12 months. \u00a0\u00a0\u00a0\u00a0 <span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span style=\"color: #0bbfeb;\">Economic Indicators\u00a0<\/span><\/h3>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Warehouse Employment Continues to Fall Despite Logistics Sector Growth as Operators Embraces Automation\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p>Warehouse employment has maintained its steady downward trend, according to recent Bureau of Labor Statistics data. As of September, the warehousing and storage sector employed 1.83 million workers \u2014 virtually unchanged from the beginning of the year after modest early gains were erased during the summer. Year-over-year, employment in the sector fell 1.2%, leaving it 5.5% below its peak in March 2022.<\/p>\n<p>This ongoing drop in staffing amid sustained, e-commerce-driven demand for logistics real estate underscores a growing separation between physical space needs and headcount growth. Since the post-pandemic e-commerce surge, logistics operators have prioritized automation and efficiency. And, as market demand increasingly favors modern, automation-ready facilities, labor requirements across warehouses are expected to decline even further.<\/p>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/30692358\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/public.flourish.studio\/visualisation\/30692358\/thumbnail\" width=\"100%\" alt=\"chart visualization\" \/><\/noscript><\/div>\n<p><iframe id=\"datawrapper-chart-vGK8e\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Economic Indicators September 2025 (Copy) (Copy) (Copy) (Copy)\" src=\"https:\/\/datawrapper.dwcdn.net\/vGK8e\/1\/\" height=\"517\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script><\/p>\n<h2 aria-level=\"2\"><span data-contrast=\"none\">Methodology<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\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\u00a0have\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\/\">CommercialCafe Markets Map<\/a>\u00a0and may differ from regional boundaries defined by other sources.<\/p>\n<p><strong>Fair Use &amp; Redistribution\u00a0<\/strong><\/p>\n<p>We encourage 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\">prinfo@commercialcafe.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite this flurry of hurdles, the industrial outlook for 2026 is largely positive due to continued demand for new warehouses, manufacturing and logistics spaces. Yet, while construction starts are expected to continue their increase for the remainder of the year, some of the headwinds listed above are likely to put a damper on overall supply and ultimately result in growing rent rates.<\/p>\n","protected":false},"author":56,"featured_media":52992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[42,4014,41],"tags":[],"class_list":["post-52987","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 v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>U.S. National Industrial Report October 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