U.S. Industrial Market Dynamics, Q3 2026

• Leasing climbed to 202.6 million s.f., up 38.5% year-over-year and 15.3% quarter-over-quarter, the strongest quarterly total since Q3 2022. Year-to-date leasing has already reached 98.2% of the full-year 2025 total.
• Year-to-date net absorption of 231.6 million s.f. has already surpassed all of 2025, holding national vacancy at 6.8% (down 80 basis points year-over-year).
• 3PLs continued to dominate leasing activity, accounting for 17.9% of all leasing but it is worth noting that Infrastructure and power are reshaping demand. Construction Materials and Building Fixtures captured 14.7% of leasing, while Communications and Technology and Energy and Utilities rose to 7.5% and 4.6%, respectively, fueled by data center supply chains, Advanced Manufacturing, and Defense and Aerospace growth.
• The flight to quality is creating scarcity at the top: vacancy for Class A warehouses over 1 million s.f. fell to just 5.4% from 9.5% a year ago, while older, smaller buildings lost occupancy. National asking rents rose 3.2% year-over-year to $10.55 p.s.f., the fastest pace since Q2 2024.
• In response to strengthening demand, developers expanded the pipeline to 317 million s.f. under construction, up 28.7% year-over-year and 14.8% quarter-over-quarter, its highest level since Q1 2024.
• Capital is following the fundamentals: industrial investment volume reached $95.3 billion through Q3 (preliminary), up 38% year-over-year and the second-highest year-to-date total on record. Cap rates held steady at 5.42% even as the 10-year Treasury climbed to 5.29%, and institutional buyers grew their share to 31.4% from 26.2% in 2025.
   

For additional context on findings in the latest report, download the prior U.S. Industrial Market Dynamics, Q2 2026.