Q4 2025 Industrial Market Reports

"Average rental rates saw modest downward pressure this quarter, declining 2.5% year over year as elevated vacancy persists amid ongoing absorption of recently delivered product."

"The East Bay/Oakland industrial market returned to negative absorption, totaling -67,292 square feet (sf) in Q4 2025. San Leandro led negative absorption, totaling -157,506 sf."

"Edmonton continues to post positive absorption, with Q4 seeing a mix driven from leases and buildto-suit deliveries. "

"Net absorption softened in the second half of the year, reaching about 0.5 million square feet (msf) across Q3 and Q4 combined, compared with 1.7 msf in the first half of the year."

"Austin leasing activity was primarily led by Compal USA Technology’s two new leases in the Georgetown/Round Rock submarket, which account for nearly 0.6 million square feet (msf) in the manufacturing industry. "

"Vacancy continued to tick down as 2025 ended, declining 170 basis points year over year. Annual net absorption totaling 8.3 million square feet (msf) fueled the decline as new leases from prior quarters, such as Bleckmann Group, commenced."

"Vacancy increased by 10 basis points (bps) in the fourth quarter to 9.1%. The Orange County industrial market recorded positive absorption, totaling 405,644 square feet (sf). "

"Nashville’s vacancy rate held steady throughout 2025, rising just 20 basis points quarter over quarter to 6.4% in Q4, as supply and demand remained closely aligned throughout the year. "

"The market’s vacancy rate increased 90 basis points year over year from 7.7% in Q4 2024 to 8.6% in Q4 2025. Deliveries outpaced net absorption year to date, keeping vacancy rates elevated."

"Vacancy averaged 9.1% in Q4 2025, up year over year but down slightly from Q3. Net absorption reached 0.6 million square feet (msf) year to date, led by large leases in Northwest and Mountain View Corridor West submarkets."