News · Commercial Real Estate
Industrial Real Estate 2026: Data Center Spillover Demand and Sub-1% Data Center Vacancy
Short answer: Industrial rents are rising modestly as vacancy stabilizes, while data center-adjacent tenants grab a growing share of logistics leasing. Cushman & Wakefield reported U.S. industrial asking rents of $10.20 per square foot in Q1 2026, up 2.1% year over year, with 60% of its 83 tracked markets showing positive annual rent growth. Sources: [1] [2] [3]
How is the industrial market performing?
Cushman & Wakefield reported U.S. industrial asking rents of $10.20 per square foot in Q1 2026, up 2.1% year over year, with 60% of its 83 tracked markets showing positive annual rent growth. It expects vacancy to gradually recompress in 2026, led by newer logistics product.
How are data centers affecting industrial demand?
CoStar says data center-adjacent occupiers (construction firms, power and cooling suppliers, IT infrastructure) accounted for more than 6% of logistics leasing within five miles of data centers in 2026, up from under 3% in 2020. Dallas-Fort Worth leads with about 10 million square feet leased by such industries since 2025.
How tight is the data center market?
Avison Young reports national data center vacancy fell below 1.0% for the first time in Q2 2026, with 3.7 GW absorbed in the quarter, the third-highest on record. Power availability is acting as a governor on new supply.
Frequently asked questions
How is the industrial real estate market performing?
Cushman & Wakefield reported U.S. industrial asking rents of $10.20 per square foot in Q1 2026, up 2.1% year over year, with 60% of its 83 tracked markets showing positive annual rent growth. It expects vacancy to gradually recompress in 2026, led by newer logistics product.
Are data centers driving industrial demand?
CoStar says data center-adjacent occupiers (construction firms, power and cooling suppliers, IT infrastructure) accounted for more than 6% of logistics leasing within five miles of data centers in 2026, up from under 3% in 2020. Dallas-Fort Worth leads with about 10 million square feet leased by such industries since 2025.
How tight is the data center market?
Avison Young reports national data center vacancy fell below 1.0% for the first time in Q2 2026, with 3.7 GW absorbed in the quarter, the third-highest on record. Power availability is acting as a governor on new supply.
Where do these figures come from?
Every figure is attributed in the text and linked in the numbered Sources list (3 sources, with publication dates where available). Vendor figures are labeled vendor-reported.