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The third quarter brought early signs of recovery in the industrial sector. Net absorption improved to roughly 45 million square feet — up nearly one-third from Q2 — marking the strongest quarter since late 2023.
Leasing and Rent Growth
National asking rents reached an average of about $10 per square foot, a modest 1.7 percent increase year over year. Vacancy stabilized around 7.1 percent, suggesting the market is moving toward equilibrium.
Construction Activity
New construction deliveries dropped by more than 30 percent year over year, helping to balance supply and demand. Many developers paused speculative projects in favor of build-to-suit deals for long-term tenants.
Regional Performance
Midwestern and Southern metros led the comeback, with Kansas City, Dallas–Fort Worth, and Nashville showing strong leasing momentum. Older properties in less strategic areas continued to lag.
Outlook
The third quarter hinted at renewed confidence. As excess supply is absorbed and demand stabilizes, the industrial market appears to be heading into a more sustainable phase for 2026.
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