TAG Industrial Watch: October 10, 2026

Across the top 50 metros, net absorption among industrial properties of at least 10,000 square feet jumped to 76.5 million SF in Q3, marking the highest level of demand since Q4 2022. While net deliveries added 59.2 million SF to the inventory, demand outpaced supply for the first time since Q2 2022, allowing the national vacancy rate to retract 10 basis points to 7.6%. Despite the rebound in demand, annual rent growth continued to decelerate, falling to a 14-year low of 1.4%. Accounting for three-quarters of demand, big-box warehouses over 200,000 SF experienced a 30-basis-point reversal in vacancies down to 8.5%. After two consecutive quarters of negative absorption, demand for mid-sized properties between 50,000-200,000 SF rose to 16.3 million SF as the vacancy rate remained constant at 8.4%. Small Industrial properties between 10,000-50,000 SF recorded positive demand of 3.0 million SF for just the second time since the market turned in 2023, allowing the vacancy rate to stand pat at 5.3%. With about 3,100 transactions, sales activity matched year-over-year levels; however, property values set a new record high as the median sales price hit $148/SF, up 16.5% annually (CoStar). Next week, check out how TAG’s major markets stack up against national trends.By acquiring specialized properties used in the production of goods that can outpace inflation, investors can position themselves for unprecedented returns in the years to come.