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US industrial property: developers record strongest construction activity in years

In the first three quarters of 2026, US developers broke ground on industrial and logistics projects totalling 274.4 million square feet of usable space.

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US industrial property: developers record strongest construction activity in years. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The US market for industrial and commercial real estate is experiencing a remarkable rise in construction activity. In the first three quarters of 2026, developers across the United States initiated construction on a total of 274.4 million square feet of new industrial space. This figure signals a clear acceleration in groundbreakings and marks a return to particularly dynamic building momentum.

Approaching the record levels of 2022

With this volume, the current year is well on track to become one of the most construction-heavy years since the historic peak in 2022. Following that phase of extraordinary highs, the pace of new construction starts had temporarily slowed as developers and investors awaited altered financing conditions and the absorption of existing space.

The latest figures now highlight a noticeable revival across the sector. Above all in the industrial and logistics building segment, project developers are once again launching new schemes with greater confidence. Solid demand for modern warehousing and production capacity is underpinning the expansion of the pipeline across various US submarkets.

Evolution of the construction pipeline in the current year

The fact that construction began on 274.4 million square feet within just nine months underlines the fundamental strength of the segment. Developers are responding to sustained demand for large-scale, technically sophisticated premises. Delivery of these projects is spread across the entire country, reflecting market participants' confidence in long-term occupancy.

  • —Groundbreakings for 274.4 million square feet of industrial space in the first three quarters of 2026
  • —Prospect of the most active year for construction starts since the 2022 peak
  • —Renewed confidence among developers regarding large-scale industrial and logistics schemes

Should this momentum continue into the fourth quarter, 2026 will go down in recent market history as one of the most remarkable years for industrial development. The volume of groundbreakings reinforces that the period of restraint appears to have passed and that the US industrial real estate market is once again expanding with considerable vigour.

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Michael Freitag
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