CoStar updates outlook for U.S. industrial demand and vacancy
CoStar forecast U.S. industrial vacancy rising slightly into early 2027, then easing as demand strengthens.
National vacancy in the mid-7% range entering Q3 2026; revised outlook reflects stronger recent net absorption.
Industrial deliveries are projected to exceed demand into 2027; demand is expected to outpace new supply by late 2027.
Average annual rent growth forecast for 2026-27 was lifted to 1.9%, constrained near term by elevated availability.
Downside risks cited include trade and tariff uncertainty, higher operating costs, and weaker goods spending; stronger confidence could speed absorption.
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