The leasing rebound is now translating into meaningful occupancy gains in the U.S. industrial sector, even as rising interest rates inject fresh caution.
Highlights from the report:
- Rising interest rates are adding uncertainty to both the demand and supply outlook.
- Leasing totaled 543.7 million square feet (msf) across Q2 and Q3 2026, the highest two-quarter stretch on record.
- Vacancy has declined 20 basis points (bps) from its 8.2% peak to 8.0%, as year-to-date net absorption has surpassed new deliveries.
- Construction activity is picking up, with the development pipeline expanding 10.2% year over year, driven in part by speculative projects.
- Vacancy for buildings of 750,000 square feet (sf) and up fell 130 bps year over year to 6.5%, the lowest of any size segment.