The industrial market has stopped weakening and is beginning a slow, uneven transition toward recovery.
Vacancy finally stabilizes Vacancy held steady at 8.2% in late 2025 after a 13-quarter climb, while sublease availability also stabilized following a prolonged increase.
Leasing rebounds from 2024 Leasing volumes rose in 2025 despite unresolved trade policy, as lease expirations forced decisions while tenants continue to prioritize flexibility.
Defense emerges as growth driver Aerospace and defense are emerging new growth drivers, representing nearly half of recent manufacturing announcements and rising venture capital investment.
Data center boom impacts industrial Rising data center construction is rippling through the industrial market, creating competition for power and land while generating downstream demand.
Measured recovery expected in 2026 A measured recovery is expected in 2026, with vacancy and sublease availability beginning to contract as rents stabilize and decision paralysis eases.
