The 2026 Industrial Real Estate Outlook: What Smart Companies Must Do Now

In Q2–Q3 2025, the U.S. Industrial Real Estate market saw vacancy rise above 7%, the highest level in almost a decade. Despite this, average asking rents held at about $10 per square foot per year, more than 60% above pre-pandemic levels, with rent growth slowing to 1–4%  (Cushman & Wakefield).

1. More options for tenants in 2026

Higher vacancy in the Industrial Real Estate market means companies will see more available space than in the past three years. Location, building quality, and layout can be compared more carefully, and lease negotiations are easier.

However, prices in core markets near ports, airports, rail hubs, and major population centers remain firm and have not shown meaningful discounts.

2. 2026 is a good time to adjust warehouse networks

By late 2025, new supply slowed and absorption returned to 2024 levels. The market is now more balanced, with less volatility.

This gives companies a stable environment to re-evaluate warehouse locations, lock in key sites, or renegotiate terms without the urgency seen in previous years.

3. How to plan industrial real estate in 2026

• Leasing: Prioritize location over price. Core markets rarely become cheap, but 2026 offers better terms such as free rent or flexible clauses. Cost-sensitive users can consider emerging markets like Houston.

• Buying: With ample supply and stable rents, 2026 is attractive for long-term investors—especially near major logistics corridors or manufacturing regions.

• Expanding/Relocating: Higher vacancy and slower rent growth make 2026 a good time to upgrade to better locations or prepare for future automation needs.

4. What drives industrial demand in 2026

• E-commerce: Stable demand but focused on efficiency; last-mile, near-city, and returns facilities remain strong.

• 3PL: Third-party logistics demand grew over 10% in 2025, making 3PLs a key lease driver.

• Manufacturing: Now about 20% of demand and could reach 30% in coming years, supporting long-term demand in regions like Texas, Tennessee, Kentucky, and North Carolina.

This makes 2026 an ideal window for Industrial Real Estate users to adjust their network.