U.S. Industrial Real Estate Market Indicators

According to JLL Research, the U.S. industrial real estate market recorded the following national indicators in 2025:

• Industrial inventory:  16.2 billion square feet
• Vacancy rate:  7.5%
• Net absorption:  161.1 million square feet
• Leasing activity:  533.2 million square feet
• Industrial space under construction:  253.7 million square feet
• New industrial deliveries:  259 million square feet
• Average industrial asking rent: $10.38 per square foot
• Industrial investment volume:  $91.3 billion

These statistics track supply, tenant demand, development activity and pricing across the U.S. logistics and warehouse property market.

The following dataset summarizes the latest national statistics for the U.S. industrial property market, compiled by JLL Research.

JLL Research evaluates performance of the U.S. industrial sector using several core indicators that measure supply, demand, development activity and pricing trends across warehouse and logistics markets.

The primary market indicators include:

• Industrial vacancy rate
• Net absorption of industrial space
• Leasing activity by tenants
• Development pipeline and new supply deliveries
• Total industrial inventory
• Industrial rental rates
• Investment transaction volumes

Together these metrics provide a comprehensive view of market fundamentals across the U.S. logistics and warehouse property sector.

Net absorption

Net absorption measures the net change in occupied industrial space over a specific period. 

In 2025, absorption totaled 161.1 million square feet, including 58.7 million square feet absorbed during the fourth quarter, the strongest quarterly performance since mid-2023.

Major markets driving absorption included:

• Dallas–Fort Worth
• Phoenix
• Houston
• Columbus
• Indianapolis
   

These markets accounted for nearly half of national absorption during the year.

Industrial leasing activity

Leasing activity measures the total industrial space leased by tenants during a given period.

Industrial tenants leased 533.2 million square feet of warehouse and logistics space in the U.S. during 2025, representing an 8.4% increase year-over-year.

Third-party logistics providers (3PLs) remained the largest tenant segment as companies continue expanding distribution networks and outsourcing logistics operations.

Industrial development pipeline

The development pipeline tracks industrial buildings currently under construction.

As of Q4 2025, 253.7 million square feet of industrial space remained under development nationwide. A growing share of new development consists of build-to-suit and owner-user facilities, reflecting increased demand for specialized logistics and manufacturing space.

New industrial deliveries

Developers completed 259 million square feet of new industrial space in 2025, marking the lowest annual delivery volume since 2019 as development activity moderated following several years of rapid expansion.

Industrial rental rates

Rental rates provide insight into pricing trends across the industrial property market.
 
Average direct asking rents reached $10.38 per square foot nationally, increasing slightly quarter-over-quarter while moderating year-over-year as supply conditions stabilized.

Markets experiencing strong rental pressure include:

• Phoenix
• Dallas–Fort Worth
• Washington D.C.
• Silicon Valley

These markets benefit from strong demand and constrained supply conditions.

Industrial transaction volume

Industrial real estate investment remained active in 2025, with transaction volumes totaling $91.3 billion nationally.

Investor demand continues to be supported by:

• Strong logistics fundamentals
• Expanding e-commerce infrastructure
• Increasing supply-chain resilience investments

Several long-term trends continue to shape U.S. industrial real estate performance:

• Expansion of e-commerce logistics networks
• Growth of third-party logistics providers
• Nearshoring and domestic manufacturing investment
• Increasing demand for automated distribution facilities
• Growth of energy-intensive industrial uses such as data centers

These trends are expected to support long-term demand for modern logistics facilities across major U.S. markets.

The industrial real estate statistics presented on this page are compiled by JLL Research, using proprietary leasing, development and capital markets data across U.S. logistics and warehouse markets.