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U.S. Industrial Leasing, Absorption Rise More Than 25% Year-Over-Year
U.S. industrial leasing volume for the first half of 2026 increased 27.1% year-over-year to 490.6 million square feet, marking the third-strongest H1 for the sector after 2021 and 2022, while net absorption was up 28% from the year-ago period, Savills reported Monday. The firm’s preliminary Q2 report on U.S. industrial found that large-format leasing, particularly deals above 750,000 square feet, has been a key driver of the pickup.
Although vacancy rose 10 basis points Y-O-Y, it held flat in the second quarter from the prior quarter, ending Q2 2026 at 8.2%, a further sign of stabilization at the midpoint of 2026. The construction pipeline totaled 320 million square feet in Q2 2026, well below the 782.4 million square feet of late 2022.
Meanwhile, asking rents have been stable, rising 1.8% Y-O-Y. With vacancy still elevated and sublease availability ticking up, near-term rent growth is expected to remain modest, reported Savills.
Pictured: International Commerce Center in Adairsville, GA, where Pactra signed a full-building lease for nearly 700,000 square feet in Q2.
Connect Industrial West | August 20 | Irvine, CA
On August 20, Connect Industrial West will bring together the owners, investors, developers, brokers, lenders, and occupiers driving industrial real estate across the Western U.S. Join top decision-makers for an afternoon of market insights, dealmaking opportunities, and networking with the industry’s most influential players. Register now: www.connectindustrialwest2026.com
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