Southeast Industrial Speculative Construction

Mid-Year 2025 Report

Speculative warehouse/distribution in the Southeast has slowed significantly from its pandemic-era peak, though mid-size buildings (100-299,999 sf) remain in high demand. As the pipeline contracts, future growth is expected to shift toward build-to-suit projects and smaller footprints to target the undersupplied smaller-bay segment.

Since 2020, the Southeast has solidified its position as a national leader in warehouse/distribution (W/D) development, driven by strong tenant demand, favorable logistics infrastructure, and access to growing consumer markets. Speculative construction surged during this period, with over 429.7 million square feet delivered across the region. However, activity has slowed considerably in recent quarters due to rising interest rates, elevated vacancy, and economic uncertainty. 

Mid-size buildings (100,000–299,999 sf) emerged as the most active and resilient segment, accounting for the majority of new deliveries and construction starts in 2025. Big-box development has tapered, though select first-generation spec assets continue to attract large tenants. Meanwhile, small-bay facilities remain critically undersupplied despite representing a significant share of leasing demand. 

As of mid-2025, 39.5 msf of speculative W/D space remains under construction, with development concentrated in key markets such as Atlanta and Savannah and emerging markets like South Florida and Jacksonville. Looking ahead, developers are expected to shift toward build-to-suit projects and smaller footprints to better align with evolving tenant preferences and market conditions. 

This report analyzes speculative construction activity across the key industrial markets of the Southeast. Download the report to read more.