U.S. Industrial Markets Tilt to Landlords as Q1 Leasing Tops 170 Million SF

2 articles · Updated · Bisnow · May 29

16 of 35 major U.S. industrial markets shifted toward more neutral or landlord-favorable conditions, with Cushman & Wakefield saying the sector is absorbing the last wave of pandemic-era supply.
Vacancy fell 10 basis points from its late-2025 peak of 7.0%, annual absorption rose 35%, and first-quarter leasing topped 170 million square feet for a fourth straight quarter.
55% of markets in the Americas are expected to post rent gains, while 23% are seen with declining vacancy and 68% with stable vacancy; some Southern U.S. markets are already raising rents.
More than 60% of U.S. respondents said tariffs or tariff threats have delayed leasing, and more than half cited geopolitical shocks such as higher energy costs and shipping disruptions.
Globally, the picture is softer: 52% of industrial markets remain tenant-favorable today, but by 2029 that share is projected to fall to 33% as landlords regain pricing power.

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