Q1 2025 Industrial Market Reports

"The vacancy rate increased to 9.2% in Q2 2025, up from 6.5% a year earlier. Net absorption has been the primary driver of vacancy increases, with this quarter marking the sixth consecutive period of occupancy losses."

"Vacancy continues to climb, reaching 13.6% in Q1 2025. This increase in vacancy is due to the significant amount of new supply coming online, with the market seeing 4.9 million square feet (msf) delivered in Q1 2025. Given the construction pipeline of over 13.0 msf, vacancy is expected to remain elevated in the near term."

"The majority of Boston’s robust construction pipeline has now delivered, with product under construction down 7.1 million square feet (msf) year over year."

"Net absorption reached 1.0 million square feet (msf) in Q1 2025, marking a strong start to the year and a sharp increase from 0.2 msf in Q1 2024. The East submarket led activity, supported by larger tenant renewals and steady Class A demand."

"Currently, 0.9 million square feet (msf) of space is under construction, reflecting a decline from 1.3 msf in the previous quarter. Additionally, 0.4 msf was completed and delivered this quarter."

"Asking rental rates climbed 10.7% year over year despite vacancy creeping higher. New product with higher face rates are a major contributor to this trend."

"Nashville's vacancy rate rose to 6.2% in Q1 2025, an increase of 90 basis points (bps) year over year. However, a shrinking construction pipeline of 5.2 million square feet (msf), 50.0% below the five-year quarterly average, is expected to support vacancy stabilization over time."

"Vacancy increased by 20 basis points (bps) in the first quarter to 7.3%. Following six consecutive quarters of negative absorption, the market recorded a positive shift, with North County recording 463,516 square foot (sf) of positive movement."

"Raleigh’s vacancy rate has risen by 220 basis points (bps) year over year to 6.6%, driven by weak net absorption over the past four quarters, totaling just 561,930 square feet (sf). The last quarter to record 1.0 million square feet (msf) of absorption was Q2 2023."

"Salt Lake City’s vacancy dipped to 7.8% in Q1 2025, down from 8.1% in Q1 2024. With construction slowing and only 199,680 square feet (sf) delivered, supply pressures are beginning to ease despite 2.7 million square feet (msf) still underway."