CoStar Projects Steady U.S. Industrial Vacancy Through 2027
Key Highlights
- ➤Industrial vacancy 7.3% in Q3, expected steady through 2027
- ➤Demand expected to outpace new supply through the remainder of 2026
- ➤2027 absorption forecast at roughly 204 million square feet
- ➤2027 completions projected at approximately 243 million square feet
- ➤CoStar (CSGP) warns risks remain weighted toward the downside
Expert Statements
Juan Arias, National director of industrial analytics at CoStar Group
“The updated forecast reflects improved leasing and signs of recovering occupancy from the weaker performance seen earlier in the year.”
Juan Arias, National director of industrial analytics at CoStar Group
“The tide began to turn in Q3 as demand for industrial space finally outpaced supply, helping to avoid a further increase in available space.”
Juan Arias, National director of industrial analytics at CoStar Group
“Risks to the forecast remain weighted toward the downside.”
Juan Arias, National director of industrial analytics at CoStar Group
“A slower recovery is expected if construction fails to moderate after 2027 or if there is a pullback in tenant demand.”
Juan Arias, National director of industrial analytics at CoStar Group
“Groundbreakings for new industrial facilities have recently risen from recent lows, and a sustained increase in speculative development could prolong elevated vacancy, particularly among mid-sized logistics properties.”
Juan Arias, National director of industrial analytics at CoStar Group
“Trade uncertainty, volatile imports, higher transportation costs, margin pressures and a sluggish housing market pose additional demand risks.”
U.S. industrial vacancy is expected to hold steady through 2027, according to a revised forecast from CoStar , a leading global provider of online real estate marketplaces, information and analytics in the property markets.
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