TAG Industrial Watch: November 8, 2025

Continuing with the Q3 industrial report, the vacancy rate among small industrial properties posted 4.8%, the availability of midsize properties hit 7.8%, and vacancies for big-box warehouses stood at 9.5%. Moving on to TAG’s top markets, Chicago’s vacancy rate rose slightly to 6.0% as annual rent growth steadied at 3.6%. Between Kansas City and Saint Louis, vacancies rose to 5.5% as net absorption contracted by the most in 23 years. Rents in America’s Heartland rose by 2.6% year-over-year. Down in the Dallas-Fort Worth market, the vacancy rate ticked lower to 9.4% and annual rent growth steadied at 4.9%. Houston’s availability climbed to 7.3%, but upon revisions, annual rent growth continued to rebound to 4.2%. The industrial vacancy rate in San Antonio and Austin pushed to a new 20-year high of 12.7%. Annual rent growth between the two metros decelerated to 0.5%, matching the slowest pace since Q4 2011. Net absorption in El Paso hit a two-year high, allowing the vacancy rate to pull back from a 15-year high to 13.2%. However, year-over-year rent growth slipped to a 13-year low of 1.2%. Out in Denver, the vacancy rate fell from a 20-year high to 8.8% as demand rebounded. Nonetheless, rents fell by -0.3%, marking the first annual contraction since the last quarter of 2010. The contraction in net absorption slowed down in Los Angeles, yet vacancies extended their record high to 6.6%. The annual change in rents matched its record low from Q4 2009 at -4.2% (CoStar, minimum 10,000 square feet, classes A, B, and C).