TAG Industrial Watch: January 3, 2026
• “overall industrial demand could contract into negative territory…” Net absorption managed to remain in positive territory for the year. However, industrial demand failed to rebound as most experts predicted, slipping to a 15-year low and experiencing its first quarter of negative absorption since the days of the Great Recession in Q2.
• “ annual rent growth, which has been in freefall since its historical peak in 2022, is on pace to contract for the first time since 2010.” While rents did not contract as TAG predicted, rent growth did not make the U-turn that the general consensus expected (CoStar forecasted a 4.2% increase in rents across the top 50 metros in the nation). Instead, rent growth decelerated to 1.4%, matching the lowest level since Q2 2012, and the average market rent plateaued in Q4 at about $11.60 per square foot.
I N D U S T R I A L N E W S
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