U.S. industrial leasing 226.7M sq ft

Savills said on May 6 that U.S. industrial leasing reached 226.7 million square feet in the first quarter of 2026, the strongest first quarter since 2022. The total was up 20.8% from 191.2 million square feet a year earlier, according to the brokerage’s quarterly industrial report. The report added to a run of first-quarter market updates from major real estate firms that showed steadier demand, slower new supply and a still-elevated vacancy rate. Cushman & Wakefield said first-quarter net absorption rose 52% from a year earlier, while JLL said leasing activity increased 17.8% year over year. ### Where did the 226.7 million-square-foot figure come from? Savills published the figure in its “State of the U.S. Industrial Market - Q1 2026” report dated May 6. The firm said leasing “hit 226.7 million square feet,” driven by stronger demand for large-format space. Commercial Property Executive reported on May 13 that the Savills tally represented the strongest first quarter for industrial leasing since 2022. (savills.us) The publication said the year-over-year increase was 20.8% and cited Savills research throughout its account. ### What else changed in the industrial market during the quarter? (savills.us) Cushman & Wakefield said first-quarter net absorption totaled 40 million square feet, up 52% from a year earlier, while new quarterly completions fell to 54 million square feet, down 27% year over year and the lowest level since mid-2017. The firm said the national vacancy rate declined 10 basis points from its late-2025 peak to 7.0%. (commercialsearch.com) Savills reported a higher national vacancy measure of 8.2% for the first quarter, unchanged from the prior quarter and up from 7.8% a year earlier. The firm also said sublease availability fell to 214.5 million square feet, the first decline since 2021, and total space under construction dropped to 273.7 million square feet from 305.9 million a year earlier. The different vacancy figures reflect differing methodologies across brokerages’ national datasets. (cw-prod-gblgws-a-cm.cushwake.com) ### Which buildings and markets are getting the demand? JLL said big-box leasing for spaces of at least 500,000 square feet rose 80.7% from a year earlier in the first quarter. The firm said 71.6% of the 145.2 million square feet of leases it tracked were new leases rather than renewals. Cushman & Wakefield said properties delivered since 2020 accounted for 68 million square feet of quarterly absorption, with nearly half of that in facilities larger than 500,000 square feet. (savills.us) The firm said Dallas-Fort Worth, Indianapolis, Phoenix, Atlanta and Charlotte led absorption gains, while several West Coast markets posted occupancy declines tied to consolidations and relocations. (jll.com) Savills said the rebound was not uniform. The firm reported that Inland Empire vacancy was approaching 10% and West Coast rents were down 17.2% from their peak, while Dallas and Atlanta continued to record vacancy declines and positive absorption. ### What are brokers and researchers saying about the drivers? Mark Russo, Savills’ vice president and head of industrial research, told Commercial Property Executive that demand in early 2026 was notable given “a continued challenging macro environment including higher oil prices.” Russo also said landlords and tenants were in “strikingly different negotiating positions depending on portfolio composition, region and space size.” (savills.us) (cw-prod-gblgws-a-cm.cushwake.com) Cushman & Wakefield said occupiers were still favoring newer buildings with higher power capacity and layouts suited to automation. JLL said tenant consolidation into more efficient facilities helped support first-quarter absorption. Both firms tied a large share of activity to modern warehouse product rather than older stock. (commercialsearch.com) ### What could change next? Savills said vacancy could decline over the next 12 months as completions slow and net absorption improves. The firm also said rising oil prices were a risk to future demand, citing a historical link between energy shocks and softer industrial absorption. April 10 and April 23 brought separate first-quarter industrial updates from Colliers and JLL, and Savills followed on May 6 with its national report. (cw-prod-gblgws-a-cm.cushwake.com) Those firms, along with Cushman & Wakefield, are expected to publish second-quarter market data later in 2026, providing the next broad read on leasing, vacancy and construction. (colliers.com) (savills.us)