Industrial rents continued to rise in July as vacancy stabilized, while development activity picked up and investment pricing strengthened, the latest Yardi Matrix Industrial National Report shows.
Report highlights
- National in-place rents reached $9.25 per square foot, up 5.4 percent year over year.
- Vacancy measured 9.3 percent, only 20 basis points higher than a year ago.
- New leases averaged $10.06 per square foot, an 81-cent premium over in-place rents.
- 427.6 million square feet of industrial space was under construction, equal to 2 percent of stock.
- Industrial transactions totaled $50.1 billion through July, averaging $140 per square foot.
Leasing conditions move closer to balance
Atlanta led annual rent growth at 7.9 percent, followed by Miami at 7.4 percent and Dallas–Fort Worth and New Jersey at 7.3 percent. Tampa posted a 7 percent gain, while high-cost coastal markets remained at the top of the pricing spectrum, including Orange County at $18.03 per square foot, Los Angeles at $16.02 and the Bay Area at $14.88.
National vacancy measured 9.3 percent, marking a 20-basis-point increase year-over-year. Some markets still posted elevated rates, including the Central Valley at 14.5 percent and Seattle at 13.3 percent, but the vacancy spike caused by the recent supply boom is largely over.
The gap between newly signed and in-place leases also continued to narrow. Leases executed in the past 12 months averaged $10.06 per square foot nationally, only 81 cents above the $9.25 in-place average.
Pipeline expands as sales pricing strengthens
Industrial construction reached 427.6 million square feet in July. Dallas had the largest volume underway at 33.7 million square feet, followed by Phoenix at 30.8 million and Houston at 21.7 million. Phoenix also had the largest pipeline relative to existing inventory, with construction equal to 6.8 percent of stock and construction plus planned projects reaching 16.4 percent.
Pushback against data center development has intensified as states and localities weigh restrictions amid concerns about resource consumption, utility bills, tax breaks and pollution. Yardi Matrix expects greater transparency around power and water use to become essential for securing community support for future projects.
Industrial construction starts have picked up since reaching a low in 2024. Through July, 180.6 million square feet broke ground, with Phoenix, Dallas and Houston leading activity. Winston-Salem–Greensboro also emerged as a major starts market because of JetZero’s 8 million-square-foot manufacturing project.
Sales volume reached $50.1 billion through July. Dallas led markets with $3.9 billion in transactions, followed by Chicago at $2.6 billion and Los Angeles at $2.5 billion. Pricing remained highly dispersed: the Bay Area averaged $322 per square foot and Los Angeles $295, compared with $85 in the Twin Cities and $90 in Detroit.
Read the full Yardi Matrix Industrial Market Outlook: August 2026.
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