U.S. Industrial Market Tightens as New Deliveries Diminish

U.S. industrial real estate continued to strengthen in 2026’s second quarter as demand and supply were in balance, pushing the national vacancy rate below 7% while leasing activity reached its highest level since mid-2022, Cushman & Wakefield said in its latest report. Year-to-date, occupiers have absorbed 113.6 million square feet of industrial space, the strongest first-half performance since 2023.

At the same time, industrial vacancy declined to 6.9% as new deliveries remained relatively modest. Developers completed 62 million square feet of new space in Q2, bringing first-half deliveries to 119 million square feet, nearly 20% below the year-ago period.

“After several quarters of market recalibration, the U.S. industrial sector is entering a new phase characterized by healthier fundamentals and more balanced growth,” said Jason Tolliver, president, Logistics & Industrial Americas, at Cushman & Wakefield. “Occupier demand continues to build while development has become much more disciplined than it was during the peak construction cycle. That combination is beginning to tighten market conditions once again, particularly for newer, high-quality logistics facilities.”