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U.S. Industrial Market Starts Leaning Back Toward Landlords

U.S. Industrial Market Starts Leaning Back Toward Landlords

New supply is finally being absorbed, vacancy is stabilizing, and rent growth is returning across much of the U.S. industrial market.

Nina Dale
June 02, 2026

In partnership with

Good morning. For the first time in several years, the industrial market is showing signs of a landlord comeback. Strong leasing and moderating supply are helping shift momentum away from tenants and back toward property owners.

🎙️This Week on No Cap: RREAF Holdings’ Kip Sowden and Doug McKnight share how they built a $4.8B Sun Belt platform out of post-GFC distress, and why middle-market housing and extended stay hotels are their highest-conviction bets as a new real estate cycle begins. (This season is sponsored by Henry)

CRE Trivia 🧠

Frank Lloyd Wright designed hundreds of buildings—but only one skyscraper was ever built. Where is it located?

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Market Snapshot

S&P 500

GSPC

7,599.96

Pct Chg:
+0.26%

FTSE NAREIT

FNER

826.11

Pct Chg:
-1.83%

10Y Treasury

TNX

4.457%

Pct Chg:
+0.004

SOFR

30-DAY AVERAGE

3.59%

Pct Chg:
-0.00

*Data as of 06/01/2026 market close.

Pricing Power

U.S. Industrial Market Starts Leaning Back Toward Landlords

After years of tenant leverage and pandemic-era supply deliveries, the U.S. industrial market is showing early signs of shifting back in landlords' favor.

By the numbers: Cushman & Wakefield's Waypoint: Global Industrial Dynamics report found conditions improved for landlords in 16 of 35 major U.S. industrial markets, with many shifting from tenant-friendly to neutral or landlord-favorable. Globally, just 8% of markets are moving in landlords' favor, underscoring the relative strength of the U.S. industrial sector.

Global uncertainty reshapes logistics: Industrial occupiers are operating in an environment where uncertainty has become a constant. Ongoing conflict in the Middle East is increasing fuel and transportation costs while disrupting shipping routes, creating new challenges for logistics operators and supply chains worldwide.

Rents poised to rise: Despite elevated vacancies in some markets, rent growth is expected in 55% of markets across the Americas. Key logistics hubs such as the Inland Empire and Atlanta are among the markets positioned for rental gains, while several Southern U.S. markets are already seeing rents move higher.

Vacancy outlook improving: The U.S. industrial sector appears to be emerging from its recent slowdown. First-quarter vacancy fell 10 basis points from its late-2025 peak, while annual absorption increased 35% year-over-year. Leasing activity also surpassed 170 million square feet for the fourth consecutive quarter, signaling sustained occupier demand.

Headwinds remain: Tariffs continue to cloud decision-making, with more than 60% of U.S. respondents reporting delayed leasing activity. The U.S. also recorded the highest share of respondents saying tariffs have postponed leasing indefinitely. Rising energy costs and broader geopolitical volatility are adding further pressure to occupier strategies.

➥ THE TAKEAWAY

Power shifts back: The massive wave of pandemic-era industrial construction is finally being absorbed, helping restore equilibrium across many logistics markets. As vacancy levels stabilize and leasing activity remains healthy, fundamentals increasingly favor owners over tenants.

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✍️ Editor’s Picks

Free AI underwriting template: Underwrite CRE deals in minutes with an institutional-grade AI underwriting model built for faster analysis, smarter assumptions, and rapid scenario modeling. (sponsored)
Delinquency dip: Agency loan delinquencies fell to 0.49% in April 2026, dropping below the range seen since mid-2025 as overall credit performance remained strong.
Recovery pause: CRE prices declined in April, ending a recent streak of gains as office losses outweighed strength in multifamily, retail, and industrial sales.
AI in action: Hear how Levin Management’s CFO cut lease abstraction from days to minutes using Kolena's AI in this the 1-minute clip. (sponsored)
Inflation warning: Federal Reserve officials signaled that rate hikes remain a possibility as persistent inflation and rising energy prices complicate the path toward lower interest rates.
Capital crossover: As institutional capital returns to CRE, investors are increasingly partnering with family offices to access deal flow, market expertise, and off-market opportunities.
Island standoff: A proposed luxury condo project on Fisher Island has sparked a high-stakes battle over a key fuel terminal that supports PortMiami’s cruise industry.
Campus selloff: Bankrupt St. Augustine’s University is exploring the sale of real estate valued at up to $200M as it works through Chapter 11 proceedings and mounting debt.

🏘️ MULTIFAMILY

Housing lifeline: States and cities are increasing subsidies, tax abatements, and local funding programs to support affordable housing development as federal support faces potential cuts.
Housing hurdles: North Texas cities are limiting the impact of a state law meant to boost multifamily housing by imposing local requirements that developers say make projects difficult to build.
Pricing divide: Constrained supply and high homeownership costs are boosting apartment pricing power in markets like San Francisco and Chicago, while oversupplied Sun Belt metros continue to face rent pressure.
Luxury cracks: A growing number of Miami luxury condo owners are suing developers over alleged construction defects, adding pressure to an already strained insurance environment.

🏭 Industrial

Portfolio payoff: PGIM and Miramar Capital sold a $300M portfolio of six fully leased FedEx logistics facilities across the Southeast to a confidential buyer.
Vacancy surge: NYC industrial vacancy rose for a fifth consecutive quarter as new supply outpaced demand, putting downward pressure on rents despite steady leasing activity.
Warehouse overhang: A pandemic-era construction boom has left the industrial market oversupplied with mid-sized warehouses, creating leasing pressure even as demand remains solid for smaller and larger facilities.

🏬 RETAIL

Retail breakthrough: Chicago’s Trump Tower signed its first retail tenant in 17 years, with Prasino leasing space at the property for a new café opening in 2027.
Retail windfall: Connolly and Coro Realty sold Sandy Springs’ fully leased Chastain Market for $71M, a 75% gain from its 2022 purchase price.
Retail reach: AmCap Properties acquired an eight-property grocery-anchored retail portfolio spanning seven states for more than $170M, expanding its national footprint.

🏢 OFFICE

Mandate plateau: Office attendance has slipped from its 2025 peak despite modestly stricter RTO policies, as most large employers remain committed to long-term hybrid work models.
Discounted headquarters: Prime Finance is set to buy Cushman & Wakefield’s Chicago HQ tower for about $120M, one of the city’s largest recent office sales at a steep discount.
Conversion setback: A downtown D.C. office building sold for $12.5M after its owners abandoned plans to convert the property into apartments due to challenging financing conditions.

🏨 HOSPITALITY

Casino takeover: Barry Diller has offered to acquire the remaining stake in MGM Resorts he does not own in a deal valuing the casino and hospitality giant at nearly $19B.
Global expansion: Japan’s APA Hotels is accelerating its North American growth strategy through acquisitions and new properties as it seeks to diversify revenue beyond its home market.
Beyond hotels: Skyscanner has rebranded its Hotels platform as Stays to reflect its 3.5M accommodation options and growing demand for experience-driven travel.
Resort refresh: South Street Partners acquired the 249-room Solé Miami hotel in Sunny Isles Beach and plans to enhance the property through guest room and amenity upgrades.

📈 CHART OF THE DAY

Multifamily development remains concentrated in large Sun Belt markets, with Los Angeles, Houston, and Dallas leading Q1 2026 permit activity, while smaller metros like Columbus and Boise continue to emerge as notable growth markets.

CRE Trivia (Answer)🧠

Bartlesville, Oklahoma, home to the 19-story Price Tower, Frank Lloyd Wright’s only realized skyscraper.

U.S. Industrial Market Starts Leaning Back Toward Landlords

New supply is finally being absorbed, vacancy is stabilizing, and rent growth is returning across much of the U.S. industrial market.

CRE Trivia 🧠