Market Trends
- Vacancy fell 70 basis points (bps) year over year to 8.1% in Q3 2025. Strong net absorption, topping 2.5 million square feet (msf) for the second time in three quarters, was driven by Anduril and Ryder Logistics.
- A shifting construction pipeline continues to materialize. Of the 4.8 msf currently under way, 67.0% is build-to-suit product. Comparatively, just 24 months ago in Q3 2023, only 35.0% of the underway projects were build-to-suit.
- New industrial deliveries have been relatively muted in 2025, totaling 2.0 msf. With a growing share of build-to-suit projects in the pipeline, near-term vacancy is expected to continue trending downward.