{"id":9193,"date":"2025-07-18T12:47:34","date_gmt":"2025-07-18T12:47:34","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=9193"},"modified":"2025-08-22T13:15:03","modified_gmt":"2025-08-22T13:15:03","slug":"u-s-industrial-market-outlook-june-2025","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/u-s-industrial-market-outlook-june-2025\/","title":{"rendered":"U.S. Industrial Market Outlook \u2013 June 2025"},"content":{"rendered":"\n<p><em>In May, industrial construction reached&nbsp;342.3 million square feet nationwide, the latest Yardi Matrix Industrial Report shows.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-report-highlights\"><strong>Report Highlights<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In-place rents averaged\u202f$8.54 per square foot in May, up\u202f6.3 percent year-over-year&nbsp;<\/li>\n\n\n\n<li>The vacancy rate declined to\u202f8.5 percent, a 30-basis-point drop from April&nbsp;<\/li>\n\n\n\n<li>86.9 million square feet\u202fof construction starts through May, lowest year-to-date total since 2018&nbsp;<\/li>\n\n\n\n<li>Projects under construction accounted for 1.7 percent of national inventory, totaling 342.3 million square feet&nbsp;<\/li>\n\n\n\n<li>Industrial sales volume reached $21.4 billion through May, with assets trading at for an average price of $133 per square foot&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-construction-activity-slows-amid-cost-and-policy-challenges\"><strong>Construction activity slows amid cost and policy challenges<\/strong><\/h2>\n\n\n\n<p>Industrial development is decelerating as developers face rising costs and policy uncertainty. Through May, new starts totaled just 86.9 million square feet\u2014marking the slowest five-month period for groundbreakings since 2018. A 50 percent tariff on imported steel and fewer-than-expected interest rate cuts are contributing to the slowdown.&nbsp;<\/p>\n\n\n\n<iframe title=\"Under-construction industrial pipeline\" aria-label=\"Table\" id=\"datawrapper-chart-zd8eo\" src=\"https:\/\/datawrapper.dwcdn.net\/zd8eo\/2\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"416\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();\n<\/script>\n\n\n\n<p>Despite the overall pullback, several markets remain active. Memphis led the nation with 4.2 percent of its inventory under construction, followed by Phoenix (3.9 percent) and Dallas (2.8 percent). These metros continue to attract tenants and capital, even as broader development momentum slows.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rents-rise-investment-activity-concentrates\"><strong>Rents rise, investment activity concentrates<\/strong><\/h2>\n\n\n\n<p>Rent growth remains positive across most major markets. Miami led all metros with a 9.8 percent annual increase, while Orange County posted the highest average rent at $16.69 per square foot. The national vacancy rate edged down to 8.5 percent, though it remains elevated compared to mid-2024.&nbsp;<\/p>\n\n\n\n<iframe title=\"Under-construction industrial pipeline (as percentage of stock)\" aria-label=\"Table\" id=\"datawrapper-chart-FjYkk\" src=\"https:\/\/datawrapper.dwcdn.net\/FjYkk\/2\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"460\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();\n<\/script>\n\n\n\n<p>On the investment front, Phoenix continues to draw strong interest. The market logged $862 million in sales through May, with average pricing up 14.2 percent year-over-year. Nationally, industrial assets traded at an average of $133 per square foot, totaling $21.4 billion in volume.&nbsp;<\/p>\n\n\n\n<p>Read the full Yardi Matrix Industrial Market Outlook: <a href=\"https:\/\/www.yardimatrix.com\/publications\/download\/File\/7379-MatrixIndustrialReport-June2025\">June 2025<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In May, industrial construction reached&nbsp;342.3 million square feet nationwide, the latest Yardi Matrix Industrial Report shows. Report Highlights Construction activity slows amid cost and policy challenges Industrial development is decelerating as developers face rising costs and policy uncertainty. Through May, new starts totaled just 86.9 million square feet\u2014marking the slowest five-month period for groundbreakings since [&hellip;]<\/p>\n","protected":false},"author":3014,"featured_media":9074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[216,4],"tags":[336],"class_list":["post-9193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-market","category-real-estate-trends","tag-industrial-real-estate-outlook"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S. Industrial Market Outlook \u2013 June 2025 - Yardi Matrix Blog<\/title>\n<meta name=\"description\" content=\"In May, industrial construction reached 342.3 million square feet nationwide, the latest Yardi Matrix Industrial Report shows.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yardimatrix.com\/blog\/u-s-industrial-market-outlook-june-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. Industrial Market Outlook \u2013 June 2025\" \/>\n<meta property=\"og:description\" content=\"In May, industrial construction reached 342.3 million square feet nationwide, the latest Yardi Matrix Industrial Report shows.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardimatrix.com\/blog\/u-s-industrial-market-outlook-june-2025\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Matrix Blog\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-18T12:47:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-22T13:15:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2025\/07\/istock-2156075126-e1752832061317.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"419\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Firtea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Diana Firtea\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"U.S. Industrial Market Outlook \u2013 June 2025 - 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She has been with the company for almost four years and joined the CPE-MHN team in 2022. Diana writes stories on different topics, mainly focusing on the affordable, senior, office and retail markets. You can reach out to her at diana.firtea@cpe-mhn.com.","url":""}]}},"jetpack_featured_media_url":"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2025\/07\/istock-2156075126-e1752832061317.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/posts\/9193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/users\/3014"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/comments?post=9193"}],"version-history":[{"count":3,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/posts\/9193\/revisions"}],"predecessor-version":[{"id":9250,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/posts\/9193\/revisions\/9250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/media\/9074"}],"wp:attachment":[{"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/media?parent=9193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/categories?post=9193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yardimatrix.com\/blog\/wp-json\/wp\/v2\/tags?post=9193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}