Read the latest Yardi Matrix Industrial Market Report.
Report Highlights
• In-place rents averaged $8.60 per square foot nationally in June, up 6.2 percent year-over-year
• The vacancy rate rose to 9.0 percent, the highest level recorded this decade
• 146.6 million square feet of industrial space were completed year-to-date
• Projects under construction totaled 341.8 million square feet, accounting for 1.7 percent of national inventory
• Industrial sales volume reached $27.6 billion through June, with assets trading at $130 per square foot on average
Vacancy rate reaches decade high
The national vacancy rate climbed to 9.0 percent in June, marking a 290-basis-point increase over the past year. This shift follows a multi-year development surge, with more than 2 billion square feet of new industrial space delivered between 2020 and 2024. Leasing activity has moderated in 2025, as companies reassess supply chain strategies and delay commitments amid tariff-related uncertainty.
Rent growth remains steady, with Miami leading all metros at 9.4 percent year-over-year. The average national rate for leases signed in the past 12 months was $10.17 per square foot, $1.57 higher than the overall in-place average.
Development and sales trends
Construction activity held firm in June, with 341.8 million square feet underway across the country. Year-to-date completions reached 146.6 million square feet. Phoenix (4.0 percent of inventory), Memphis (4.3 percent) and Dallas (3.0 percent) remain top markets for active development.
Industrial investment totaled $27.6 billion in the first half of the year. Southern California markets saw pricing adjustments from recent highs: Inland Empire averaged $247 per square foot, Orange County $301 and Los Angeles $279. These regions continue to command premium pricing despite a cooling trend.
Read the full Yardi Matrix Industrial Market Outlook: July 2025.
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