The US industrial real estate market showed renewed signs of stabilisation in the second quarter of 2026. Demand from tenants outstripped the completion of new construction projects, vacancy rates stagnated, and rent growth moderated after several years of pandemic-induced volatility. This is according to the latest “Colliers U.S. Industrial Market Statistics Report for Q2 2026”.
Market Activity and Forecasts
Industrial real estate absorption – an indicator of actually utilised space – reached 59.5 million square feet in the second quarter. This contrasts with 50.6 million square feet of new completions in the same period. This development underscores the market’s re-establishing equilibrium. The national vacancy rate stabilised at 5.4%, and average rents, based on offered space, increased by 0.8% to $10.75 per square foot. Although 844 million square feet are still under construction, a significant portion of these projects is expected to be completed by the end of the year. It is anticipated that the market will maintain a healthy balance of supply and demand through to 2027.
Colliers research experts forecast that completions will peak in the coming two quarters before experiencing a significant decline in the first half of 2027. This projection suggests that the market will not face significant oversupply in the foreseeable future, which should foster further stabilisation.
Regional Insights and Key Trends
Particularly noteworthy is the robust demand in key markets. The second quarter showed remarkable dynamism in markets such as Dallas-Fort Worth, Southern California’s Inland Empire, and Phoenix. These regions continue to benefit from strong economic activity and strategic logistics locations. The moderation of rent development is a positive sign for market health. This indicates that the extreme values of past years, caused by pandemic-related bottlenecks and supply chain disruptions, will not recur. The current scenario offers both tenants and investors greater predictability and transparency.
- —Absorption: 59.5 million square feet in Q2 2026.
- —New completions: 50.6 million square feet in Q2 2026.
- —National vacancy rate: stable at 5.4%.
- —Rent growth: 0.8% to $10.75 per square foot.
The continued strength of e-commerce and the ongoing need to make supply chains more resilient remain essential drivers for the demand for industrial and logistics space. Companies are increasingly investing in modern warehousing and distribution centres to boost efficiency and prepare for future challenges. These investments are reflected in ongoing construction activity, but with a healthier balance in relation to actual space demand.
