Lease pricing is turning more tenant-friendly in several major markets even as development pipelines stay elevated, the latest Yardi Matrix industrial report shows.
Report Highlights
- The national in-place industrial rent level moved up to $9.08 per square foot in April, reflecting 5.3 percent annual growth.
- Vacancy measured 9.1 percent, up 30 basis points over the past year, with conditions broadly steady since late 2025 as deliveries leveled off.
- Industrial space under construction totals 360.8 million square feet, representing 1.7 percent of stock.
- Year-to-date industrial transactions reached $23.9 billion through April at an average of $138 per square foot.
- Producer prices surged in April, with PPI up 1.4 percent month-over-month and 6.0 percent year-over-year, driven largely by energy costs.
Rent growth leaders stay in front as vacancy holds steady
Industrial rent growth remained strongest in a familiar group of markets in April. Atlanta posted 8.1 percent year-over-year in-place rent growth, followed by the Inland Empire at 7.1 percent, Miami at 6.9 percent and Tampa at 6.7 percent. At the other end of the pole, Memphis recorded 2.3 percent growth, while Denver and Detroit were at 3.0 percent and St. Louis at 3.3 percent.
National vacancy clocked in at 9.1 percent in April. Vacancies have generally stabilized since the second half of last year as deliveries leveled off and demand remained steady but muted. Lease-rate dynamics continue to point to tenant leverage in parts of the market: leases signed in the past 12 months averaged $9.99 per square foot, and the national new-lease premium has narrowed in recent quarters, with some markets now seeing newly signed leases priced slightly below in-place averages.
Development and sales activity concentrated in major hubs
The development pipeline remains elevated, with 360.8 million square feet underway nationally. Dallas continues to lead by total volume, with 28.6 million square feet under construction, while Phoenix (19.4 million), Houston (21.0 million) and Columbus (12.5 million) also rank among the largest pipelines. Dallas’ April vacancy rate was 9.7 percent after substantial deliveries in recent years, yet starts increased in 2025 to 28.0 million square feet, slightly above 2024.
Investment activity totaled $23.9 billion through April and assets traded at $138 per square foot on average. Dallas led year-to-date volume at $1.8 billion, followed by New Jersey and Detroit at $1.3 billion each. Pricing dispersion remained wide, ranging from $303 per square foot in the Bay Area and $299 in Orange County to $79 in Detroit and $54 in Memphis.
Read the full Yardi Matrix Industrial Market Outlook: May 2026.
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