In 1Q26, the industrial sector’s vacancy rate held steady at 7.5%, the same rate as the previous quarter and .5% higher than a year earlier.1 Consistent with recent history, vacancy was lower in the small bay segment (less than 6%) than for properties between 100,000 sf and 500,000 sf (approximately 10%). There was also little change to asking rents as they declined just slightly from $12.12 psf in 4Q25 to $12.11 psf in 1Q26. While rents were largely unchanged QoQ, they did increase by 1.25% YoY. Pandemic-era rent growth is still generating meaningful rent increases for some property owners as units are renewed or turnover; however, rent data also indicates that tenants—particularly those in larger warehouses—have gained negotiating leverage from the new supply wave that peaked in 2023.

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Research contact:
Debo Ayeni

Research sponsored by ABR Capital Partners