Key takeaways
- Leasing activity surged to 175.7 million s.f., up 49.4% year-over-year and 20.9% quarter-over-quarter, marking the strongest quarterly performance in over three years as occupiers re-engaged with larger and longer-term commitments.
- Net absorption of 99.1 million s.f. nearly doubled from Q1 and represented a seven-fold increase year-over-year, reflecting the delayed payoff of tenant demand that has been building throughout the cycle.
- The national vacancy rate compressed 60 basis points to 6.8%—the first meaningful contraction since mid-2023—as space that had been shadowing the market was finally absorbed, with Class A warehouses over 1 million s.f. tightening to just 5.8% vacancy.
- Big-box leasing (spaces of at least 500,000 s.f.) increased 58.3% year-over-year, signaling renewed occupier confidence in strategic expansion. Flight-to-quality trends intensified as tenants prioritized power availability, automation-ready specifications, and skilled labor access over discounted rents in older facilities.
- Industrial development rebounded with construction up 9.2% year-over-year to 276 million s.f. under construction, while asking rents advanced to $10.45 per square foot as landlords in the tightest markets began regaining pricing leverage.