Cushman & Wakefield Releases Q4 2025 U.S. Industrial Stats
NEW YORK, January 12, 2026 – The U.S. industrial real estate market closed 2025 with strengthening fundamentals and improving momentum heading into 2026, according to the latest report from Cushman & Wakefield (NYSE: CWK). Stable vacancy, sustained leasing activity, moderating new supply, and a meaningful uptick in second-half absorption all point to a market transitioning toward healthier, more balanced growth.
Industrial demand accelerated in the second half of 2025 despite a cooling labor market and ongoing trade and tariff uncertainty. Net absorption reached 54.5 million square feet (msf) in the fourth quarter, up 29% from Q4 2024 and in line with third-quarter performance. This late-year improvement lifted full-year absorption to 176.8 msf, representing a 16.3% increase over 2024 and marking the strongest six-month demand trend since 2023.
“Last quarter we saw newer warehouse and logistics facilities driving the increase in demand, consistently outperforming older, less functional assets as occupiers prioritized automation-ready buildings with higher power capacity,” said Jason Price, Senior Director, Americas Head of Logistics & Industrial Research. “Large users were a key contributor to this trend, with tenants occupying 500,000 square feet or more absorbing over 116 msf during the year.”
Leasing activity remained a central pillar of market strength. Fourth-quarter leasing totaled 165.7 msf, an 11% year-over-year increase, while full-year leasing reached 665 msf, the highest annual total since 2022. Larger transactions played an outsized role, with 43 leases exceeding 1 msf signed in 2025, a 30% increase from the prior year. Market performance was broad-based, with six U.S. markets recording more than 10 msf of positive net absorption, led by Dallas–Fort Worth, Indianapolis, Kansas City, and Greenville—all of which posted stronger results than in 2024.
On the supply side, construction activity continued to cool, helping prevent further upward pressure on vacancy. Developers delivered almost 281 msf of new industrial space in 2025, down 35% from 2024 and the lowest annual total since 2017. Fourth-quarter deliveries fell to 65.7 msf, a 24% decline year over year. The composition of new supply also continued to shift, with speculative development accounting for a smaller share of deliveries and build-to-suit projects representing 40% of space currently under construction. This trend reflects occupiers’ growing preference for customized, high-performance logistics facilities.
Vacancy stabilized nationally at 7.1% for the second consecutive quarter, suggesting the market may be nearing peak vacancy. Year-over-year, vacancy rose by just 50 basis points, the smallest annual increase since late 2022. While availability increased modestly in the Northeast and West, vacancy improved in both the Midwest and South. Smaller-bay industrial product remained the tightest segment nationally, while big-box vacancy showed signs of improvement in the second half of the year following a mid-year peak.
Rent growth continued to moderate but remained positive, with average U.S. industrial asking rents rising to $10.18 per square foot, up 0.8% quarter over quarter and 1.5% year over year. Over the longer term, fundamentals remain compelling, with national rents up 53% over the past five years.
Structural demand drivers continue to underpin the sector’s resilience. Most U.S. logistics demand remains domestic and population-centered, anchored by e-commerce fulfillment, essential goods distribution, and retail replenishment. Manufacturing-related demand also supported leasing activity in 2025, particularly in the Southeast and Central regions. At the same time, infrastructure constraints, especially access to reliable power, are emerging as critical factors shaping development timelines, site selection and asset performance.
“With vacancy stabilized and new supply slowing, the U.S. industrial market is entering 2026 from a position of strength,” said Jason Tolliver, President of Logistics & Industrial Services. “Occupiers are back in the market with a clear shift toward long-term network efficiency, automation, and resilience. That focus is driving the strongest performance in modern, power-capable assets and in markets aligned with domestic consumption and manufacturing investment.”
As the market enters 2026, slowing deliveries, disciplined development, and renewed occupier engagement are expected to support continued stabilization and selective growth, positioning the U.S. industrial sector for a more durable and strategically grounded expansion.