U.S. Industrial Market Outlook – March 2026

National vacancy stabilized as rent growth continued, despite nearly 380 million square feet of industrial space being under construction, the latest Yardi Matrix report shows.

Report Highlights

• National in-place rent reached $8.99 per square foot in February, up 5.5 percent year over year.
• Vacancy measured 9.2 percent nationally, up 100 basis points annually.
• 379.4 million square feet of industrial space is under construction, equal to 1.8 percent of stock.
• Industrial transactions totaled $8.9 billion year to date at $144 per square foot.
• Chicago prices rose more modestly than national averages over the past cycle.

Rent Growth Led by Sun Belt and Midwest Markets

National industrial rents averaged $8.99 per square foot in February, rising five cents month over month. Atlanta posted the strongest annual growth at 7.9 percent, followed closely by Columbus at 7.8 percent and Philadelphia at 7.3 percent. Markets such as Miami ($13.38), Boston ($12.19) and Seattle ($12.81) continued to command higher absolute pricing, while Central Valley (14.7 percent vacancy) and Denver (12.3 percent vacancy) remained among markets with elevated availability.

Vacancy increased to 9.2 percent nationally but has plateaued in recent months as supply additions moderate. Leases executed during the past year averaged $9.97 per square foot, narrowing the premium over in-place rents and signaling reduced upward pressure on pricing.

Development Concentrated in Texas and Mountain West

Industrial space under construction totaled 379.4 million square feet nationally. Phoenix led major markets with 19.9 million square feet underway, representing 4.5 percent of stock. Houston followed with 21.9 million square feet (3.2 percent of stock), while Dallas recorded 29.6 million square feet under construction.

Sales activity reached $8.9 billion through February at an average price of $144 per square foot. Dallas ($955 million), Phoenix ($523 million) and New Jersey ($436 million) led year-to-date transaction volume. Pricing varied widely across markets, with the Bay Area averaging $387 per square foot, Los Angeles $302 and Chicago $81.

Read the full Yardi Matrix Industrial Market Outlook: March 2026.