CBRE: industrial leasing up 14%

CBRE said U.S. industrial leasing rose 14% from a year earlier in the first quarter of 2026, a sign that tenant demand recovered after a period of softer absorption and rising vacancy. The brokerage’s quarterly figures showed 249.8 million square feet of leasing volume in the quarter, while national asking rents increased to $11.08 per square foot. Vacancy held at 6.7%, according to the report. CBRE said rent growth returned for the first time since 2024. ### Where did the rebound show up most clearly? CBRE said the clearest shift came in large-format distribution space. The firm said big-box demand was three times recent levels, while small- and mid-sized formats saw less activity in the quarter. That split suggests the leasing recovery is being led by larger occupiers rather than the broader tenant base. (cbre.com) CBRE’s 2026 industrial outlook had pointed to that possibility earlier this year. The firm said mega big-box occupiers were expected to move quickly to upgrade into first-generation buildings in markets including Phoenix, Chicago, Louisville, Kansas City, Columbus, Greenville and the Inland Empire. ### What does $11.08 a square foot tell landlords and investors? (cbre.com) CBRE said national asking rents reached $11.08 per square foot in Q1 2026, up year over year, even with vacancy at 6.7%. That combination matters because industrial landlords spent much of 2024 and 2025 working through a wave of new supply that pushed availability higher in many markets. CBRE’s figures now show leasing volume improving at the same time rent growth has resumed. (cbre.com) CBRE’s capital-markets data also showed industrial remained a favored property type for investors. Net-lease industrial investment rose 15% year over year to $7.1 billion in Q1, and the sector accounted for 58% of total net-lease investment, up from 49% a year earlier, according to the firm. ### Is the recovery broad-based across markets? Los Angeles showed a more mixed picture than the national numbers. (cbre.com) CBRE said Los Angeles posted 934,025 square feet of positive absorption in Q1 2026, the first positive reading since 2022, but vacancy still rose to 5.4% and availability climbed to 8.1%. Asking lease rates in Los Angeles declined to $1.21 per square foot per month on a triple-net basis. (cbre.com) CBRE’s local and regional reports point to the same pattern in other markets: demand has improved, but the rebound is uneven and still working through supply delivered in the previous cycle. In the Midwest, CBRE said leasing activity reached 44.0 million square feet in Q1 and average asking rents rose to $7.46 per square foot as vacancy edged down to 5.1%. (cbre.com) ### Why are big users moving first? CBRE said occupiers are renewing space earlier, expanding domestic manufacturing capacity, upgrading into newer distribution buildings and outsourcing more logistics work to third-party providers. The firm also said available first-generation blocks of 500,000 square feet or more are limited in several major markets, which could draw large tenants into the market faster. (cbre.com) CBRE also flagged risks to the outlook. The Q1 industrial figures said rising geopolitical tensions remain a downside risk even as leasing fundamentals improved. CBRE’s next data points will come through its second-quarter industrial figures and updated market-level reports, which the firm posts on its research pages. Los Angeles, the Inland Empire and other major logistics markets are among the local reports investors and landlords will be watching. (cbre.com 1) (cbre.com 2) (cbre.com 3)