Source: CBRE Research, U.S. Industrial & Logistics Figures (Q4 2025)
Industrial and logistics leasing activity accelerated in the fourth quarter, helping 2025 finish as the second-strongest year on record for annual leasing volume, according to new research from CBRE.
Net absorption totaled 58.2 million square feet in Q4, bringing the annual total to 149.2 million square feet. More than half of the year’s absorption occurred in the second half as numerous build-to-suit projects were delivered and quickly occupied.
While demand remained healthy, elevated construction deliveries continued to outpace absorption. The national vacancy rate rose modestly by 10 basis points to 6.7% in the fourth quarter, while availability held steady at 9.2% as many occupiers continued to rightsize their footprints.
Encouragingly, the development pipeline is beginning to moderate. Space under construction declined nearly 13% year over year to 220.6 million square feet, suggesting that supply pressures may ease moving forward.
Leasing momentum was driven in part by mega big-box facilities, with properties larger than 1.2 million square feet recording the strongest year-over-year growth. The trend highlights continued demand for modern, large-scale distribution and logistics facilities near major population centers.