On the investment front, the sector continues to attract capital, the latest Yardi Matrix Industrial Report shows.
Report Highlights
• Industrial sales totaled $33.8 billion through July, with properties trading at an average of $129 per square foot
• 170.5 million square feet of industrial space were delivered year-to-date
• 340.2 million square feet remain under construction, accounting for 1.7 percent of total inventory
• The national vacancy rate rose to 9.1 percent, up 270 basis points year-over-year
• In-place rents increased 6.1 percent year-over-year, reaching $8.63 per square foot nationally
Development activity and vacancy trends
Industrial development remained active through July, with 170.5 million square feet of space completed and 340.2 million square feet underway nationwide. Dallas–Fort Worth led all metros with 30.6 million square feet under construction, followed by Phoenix (17.0 million square feet) and Houston (16.5 million square feet). Memphis recorded the highest share of inventory under construction at 4.1 percent, highlighting its expanding logistics footprint.
The national vacancy rate reached 9.1percent, driven by sustained delivery of new supply. Columbus (13.7 percent), Chicago (12.5 percent) and Miami (11.4 percent) posted the highest vacancy rates among major markets, while Bridgeport (3.6 percent) and Kansas City (4.3 percent) remained among the tightest. The increase in vacancy reflects the impact of multi-year development activity across key distribution hubs.
Sales volume and pricing overview
Investment activity remained steady, with $33.8 billion in industrial assets trading through July. The average sale price held at $129 per square foot nationally. Regional pricing varied significantly: Baltimore recorded $193 per square foot, while Chicago and Houston remained below the national average at $95 and $94, respectively. Orange County ($301) and Los Angeles ($285) continued to command higher pricing.
National in-place rents rose 6.1 percent year-over-year to $8.63 per square foot. Leases signed over the past 12 months averaged $10.08. While rent growth has moderated in some metros, overall pricing remains supported by long-term logistics demand.
Read the full Yardi Matrix Industrial Market Outlook: August 2025.
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