The U.S. industrial market continues to normalize, with steady rent gains, a stable new-lease premium and active development pipelines, the latest Yardi Matrix report shows.
Report Highlights
- In-place rent nationally increased four cents month over month in March to $9.03 per square foot, a 5.4 percent annual gain.
- Vacancy moved up 10 basis points month over month to 9.3 percent and is 80 basis points higher than a year ago.
- The new-lease premium held near $1 per square foot, with recent leases averaging $10.01 per square foot.
- Industrial space under construction totals 367.7 million square feet, representing 1.8 percent of stock.
- First-quarter transactions reached $15.5 billion, with assets trading at $138 per square foot on average.
Leasing conditions stabilize as rent spread holds
Industrial rent growth continued at a measured pace in March, with year-over-year gains of 5.4 percent at the national level. Among major metros, Atlanta posted the strongest annual increase at 8.1 percent, followed by Tampa at 7.3 percent, Bridgeport at 7.1 percent and Miami at 7.0 percent.
Vacancy increased to 9.3 percent, up 80 basis points from the same time last year. The premium paid for newly signed leases remains uneven across markets: Bridgeport recorded a $5.06 gap between in-place and new-lease pricing, while Boston ($3.73) and Miami ($3.23) were the only other top markets above $3. Nationally, the spread has held near $1 per square foot in recent months.
Construction remains elevated, with Phoenix leading by share
The development pipeline remains sizable, with 367.7 million square feet under construction across top markets. Phoenix continues to stand out by intensity, with 18.7 million square feet underway representing 4.1 percent of inventory, the highest share among major metros. Dallas (29.7 million square feet) and Houston (21.6 million) lead by total square footage under construction.
Sales activity totaled $15.5 billion in the first quarter, and properties traded at an average of $138 per square foot. Dallas led transaction volume at $1.18 billion, followed by Atlanta ($811 million) and Chicago ($792 million). Pricing ranged from $304 per square foot in the Bay Area to $85 in Chicago.
Read the full Yardi Matrix Industrial Market Outlook: April 2026.
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