The U.S. industrial real estate market entered 2026 on solid footing, with first-quarter fundamentals signaling a market that is stabilizing and beginning to rebalance, according to Cushman & Wakefield.
Vacancy moved below its late 2025 peak, demand held steady, and new supply slowed to its lowest level since 2017, supporting a constructive outlook for the year ahead.
Building on late-2025 momentum, the market recorded its strongest first quarter for net absorption since 2023, totaling 40 million square feet, up 52 percent year-over-year. While absorption moderated from the prior two quarters, first quarter activity is typically the slowest of the year. Over the past 12 months, total absorption reached 198 million square feet, exceeding full-year totals in both 2024 and 2025 by 31 percent and 8 percent, respectively.
“Demand for modern logistics space continues to accelerate as occupiers prioritize automation ready facilities with higher power capacity. In
