The industrial market has stopped weakening and is beginning a slow, uneven transition toward recovery.
- Vacancy finally stabilizes
Vacancy held steady at 8.2% in late 2025 after a 13-quarter climb, while sublease availability also stabilized following a prolonged increase. - Leasing rebounds from 2024
Leasing volumes rose in 2025 despite unresolved trade policy, as lease expirations forced decisions while tenants continue to prioritize flexibility. - Defense emerges as growth driver
Aerospace and defense are emerging new growth drivers, representing nearly half of recent manufacturing announcements and rising venture capital investment. - Data center boom impacts industrial
Rising data center construction is rippling through the industrial market, creating competition for power and land while generating downstream demand. - Measured recovery expected in 2026
A measured recovery is expected in 2026, with vacancy and sublease availability beginning to contract as rents stabilize and decision paralysis eases.