The U.S. industrial real estate market is showing signs of stabilization after several years of rapid growth, according to Colliers’ new Markets That Move America report, which tracks the country’s top 25 largest industrial markets by inventory.
The report found that construction pipelines are shrinking, vacancy rates are rising more gradually, and net absorption is leveling off. On average, quarterly net absorption increased by just 200,000 square feet over the past year, a sign that demand is returning to more balanced levels.
The table below looks at the 25 largest U.S. industrial markets, ranked by inventory, along with key data on vacancy, rents, and construction activity.
Rank
Market
Inventory (SF)
Vacancy Rate
Rent
Net Absorption YTD
Under Construction
1
Greater Los Angeles
1.74B
4.9%
$15.75
5.0M SF
17.8M SF
2
Chicago
1.55B
4.8%
$8.03
872K SF
10.4M SF
3
Dallas-Fort Worth
1.11B
9.3%
$9.88
6.9M SF
25.4M SF
4
Atlanta
917M
8.8%
$8.70
811K SF
13.6M SF
5
New York City Metro
891M
6.4%
$17.00
-5.9M SF
4.4M SF
6
Houston
783M
6.8%
$9.95
1.0M SF
16.7M SF
7
Detroit
647M
4.7%
$7.14
-2.2M SF
2.2M SF
8
West-Central Florida
586M
7.6%
$10.89
350K SF
10.0M SF
9
San Francisco Bay Area
579M
7.8%
$14.74
79K SF
4.2M SF
10
Philadelphia
551M
7.7%
$11.14
-1.0M SF
12.6M SF
11
Phoenix
449M
13.2%
$12.65
4.1M SF
12.6M SF
12
South Florida
442M
6.4%
$16.77
-1.3M SF
7.0M SF
13
Minneapolis-St. Paul
409M
4.3%
$7.89
779K SF
3.3M SF
14
Charlotte
395M
8.0%
$9.06
1.6M SF
5.6M SF
15
Cleveland
365M
3.1%
$4.60
145K SF
3.2M SF
16
Columbus
363M
8.4%
$7.19
3.5M SF
4.2M SF
17
Indianapolis
353M
10.8%
$5.99
571K SF
2.6M SF
18
Seattle/Puget Sound
340M
7.9%
$12.64
-40K SF
5.4M SF
19
Memphis
306M
9.4%
$4.14
-1.2M SF
3.3M SF
20
Kansas City
302M
5.0%
$5.37
3.2M SF
7.4M SF
21
Cincinnati
293M
5.2%
$5.88
468K SF
2.7M SF
22
Denver
290M
8.5%
$10.80
834K SF
5.1M SF
23
Milwaukee
290M
8.3%
$6.01
-735K SF
3.1M SF
24
St. Louis, MO
277M
4.8%
$5.96
943K SF
3.3M SF
25
Portland
271M
6.3%
$10.86
-576K SF
1.9M SF
Colliers expects vacancy rates to peak later this year, as new construction continues to slow and demand remains steady. While rent growth has eased after a period of double-digit increases, the nation’s top 25 industrial markets remain critical hubs for U.S. logistics activity in 2025 and beyond.
