Industrial Market Remained Relatively Stable Prior to Imposition of Tariffs | Q1 2025 U.S. Industrial & Logistics Figures

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CBRE
Figures
  | 
Industrial & Logistics | Q1 2025
Industrial Market Remained Relatively Stable Prior to Imposition of Tariffs
CBRE RESEARCH
 | 
APRIL 2025
8.8%
Availability Rate
6.3%
Vacancy Rate
$10.91
Net Asking Rent
23.3 M
YTD Net Absorption (SF)
64.6 M
YTD Completions
(SF)
Arrows indicate year-over-year change.

Executive Summary

  • The overall industrial vacancy rate rose by 20 basis points to 6.3% in Q1, the highest since Q2 2014. This was fueled by negative absorption in 20 of the 60 markets tracked by CBRE.
     
  • Despite solid leasing activity, net absorption was relatively low at 23.3 million sq. ft. as a growing number of occupiers consolidated out of older facilities.
     
  • Construction completions fell to their lowest quarterly level since Q2 2018 at 64.6 million sq. ft. Plummeting construction starts will lead to fewer completions in coming quarters.
     
  • Many occupiers are taking a wait-and-see approach before making real estate decisions. The imposition of widespread tariffs on imports likely will have a significant impact on market activity, especially if increased costs are passed on to consumers.
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