USMCA uncertainty and moderating leasing conditions are shaping industrial market fundamentals, the latest Yardi Matrix industrial report shows.
Report Highlights
- National in-place rents reached $9.12 per square foot in May, up 5.2 percent year over year
- Vacancy clocked in at 8.8 percent nationally, up 30 basis points from a year earlier
- Leases signed in the past 12 months averaged $10.06 per square foot, $0.94 above in-place rents
- Industrial space under construction totaled 383.2 million square feet, equal to 1.8 percent of stock
- Transactions reached $31.5 billion through May at an average price of $139 per square foot
New-lease premiums remain wide in select markets
The national new-lease premium continued to narrow in May, with leases signed over the past year averaging $10.06 per square foot compared with the $9.12 in-place average. Bridgeport posted the largest gap, with newly signed leases $3.15 per square foot above in-place rents. Miami and Boston each recorded a $3.02 premium, followed by Dallas-Fort Worth ($2.45) and the Bay Area ($2.31).
Rent growth continued to moderate across major markets. The Inland Empire’s 8.1 percent annual increase led the nation, yet two years ago seven of the top 25 markets exceeded that pace, illustrating how broadly rent growth has cooled. Tampa (7.0 percent), Miami (6.9 percent), Atlanta (6.8 percent), Nashville (6.4 percent) and Boston (6.3 percent) followed. At the lower end, Memphis posted 2.1 percent rent growth, Detroit 2.7 percent and St. Louis 3.2 percent.
Pipelines stay active as pricing varies by market
The national construction pipeline totaled 383.2 million square feet in May. Phoenix had the highest development intensity among major markets, with 25 million square feet underway, equal to 5.5 percent of stock. Dallas led by total volume with 32.6 million square feet under construction, followed by Phoenix, Houston (19.8 million square feet), Atlanta (14 million square feet) and Columbus (12.9 million square feet).
Sales volume reached $32 billion year-to-date through May, with Dallas leading all markets at $2.3 billion. Chicago ($1.6 billion), New Jersey ($1.5 billion), Phoenix ($1.4 billion) and Houston ($1.4 billion) followed. Pricing ranged widely, from the Bay Area ($332 per square foot), Orange County ($282 per square foot) and Los Angeles ($274 per square foot) to Kansas City ($79 per square foot) and the Twin Cities ($71 per square foot).
Read the full Yardi Matrix Industrial Market Outlook: June 2026.
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