The U.S. industrial real estate market closed 2025 with strengthening fundamentals and improving momentum heading into 2026, according to Cushman & Wakefield. Stable vacancy, sustained leasing activity, moderating new supply, and a meaningful uptick in second-half absorption all point to a market transitioning toward healthier, more balanced growth.
Industrial demand accelerated in the second half of 2025 despite a cooling labor market and ongoing trade and tariff uncertainty. Net absorption reached 54.5 million square feet in the fourth quarter, up 29 percent from fourth quarter 2024 and in line with third-quarter performance. This late-year improvement lifted full-year absorption to 176.8 million square feet, representing a 16.3 percent increase over 2024 and marking the strongest six-month demand trend since 2023.
“Last quarter we saw newer warehouse and logistics facilities driving the increase in demand, consistently outperforming older, less functional asse
