The industrial market continued to normalize in June as vacancy stabilized, rent growth slowed and the premium on newly signed leases narrowed, the latest Yardi Matrix Industrial National Report shows.
Report highlights
- National in-place rents reached $9.20 per square foot, up 5.3 percent year over year.
- Vacancy measured 9.1 percent, only 10 basis points higher than a year earlier.
- Recently signed leases averaged $10.02 per square foot, an $0.82 premium over in-place rents.
- The construction pipeline totaled 399.5 million square feet, equal to 1.9 percent of stock.
- First-half industrial sales reached $40.7 billion at an average of $141 per square foot.
New-lease premium continues to narrow
Industrial rent growth remained positive but has become less widespread. The Inland Empire led major markets with an 8.4 percent annual increase, followed by Atlanta at 8.1 percent and Miami at 7.3 percent. Only three markets posted growth above 7 percent, compared with eight one year earlier.
Vacancy held at 9.1 percent nationally, signaling that availability has plateaued as new supply slows and demand normalizes. Leases signed during the past 12 months averaged $10.02 per square foot, compared with the $9.20 national in-place average. The resulting 82-cent spread was nearly half the $1.58 premium recorded one year earlier. Miami had the largest metro spread at $3.26, followed by Nashville at $2.92, Bridgeport at $2.63, Dallas at $2.17 and the Bay Area at $2.15.
Phoenix and Dallas lead the pipeline
Industrial space under construction reached 399.5 million square feet nationally. Dallas led all listed markets by total volume with 31.2 million square feet underway, narrowly ahead of Phoenix at 30.2 million. Phoenix had the largest pipeline relative to inventory at 6.7 percent, followed by Columbus at 4.1 percent and Denver at 3.3 percent.
Atlanta’s warehouse pipeline is expanding again after a two-year slowdown. The market recorded 8 million square feet of warehouse and distribution starts in 2025 and 5.3 million square feet during the first half of 2026. The resurgence includes three buildings totaling 3.3 million square feet at River Park E-Commerce Center.
Industrial transactions totaled $40.7 billion through June. Dallas led metro sales volume with $2.6 billion, followed by Chicago at $2.2 billion and Los Angeles at $1.9 billion. Pricing ranged from $318 per square foot in the Bay Area and $298 in Los Angeles to $81 in the Twin Cities and Kansas City. Bay Area pricing was boosted by manufacturing transactions in Fremont, where six properties sold for an average of $447 per square foot.
Read the full Yardi Matrix Industrial Market Outlook: July 2026.
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