September 2026 Industrial Report: E-Commerce Boosts Demand, Projects Larger Than 1 Million Square Feet Gain Ground in Construction Pipeline

Industrial Sector Moves Toward Balance From Oversupply

While market performance remains uneven geographically, the industrial real estate sector as a whole continues its transitional trend from the supply excess of the start of the pandemic to a more balanced phase.

Despite the various headwinds of recent years — such as the tariffs situation, economic uncertainty and the spike in energy prices — demand for industrial space has remained relatively solid, largely due to investment in supply chain resiliency and distribution networks...

Key Takeaways:

• The construction pipeline grew 32% year-over-year (Y-o-Y) from more than 338 million square feet in August 2025 to nearly 447 million square feet in August 2026.
• Year-to-date industrial sales reached nearly $60.5 billion, a 40% increase Y-o-Y
• The average leasing rate across top markets was up 5.4% year-over-year in August.
• Inland Empire, Calif., industrial rents grew by nearly 7% in a 12-month period.
• Columbus, Ohio, vacancies reach 7.5% following 600-basis-point (bps) year-over-year decrease.
• Year-to-date industrial sales volume in Tampa, Fla., doubles in August, hitting $1 billion.

Regional Highlights:

• Sale prices in Los Angeles went up 9% Y-o-Y to approach $300 per square foot.
• Indianapolis commands the highest regional premiums on new leases.
• Construction activity more than doubled year-over-year in Charlotte, N.C., and Baltimore.
• New Jersey topped year-to-date sales in the Northeast, while Boston commanded the highest average sale price per square foot in the region.