1、Page 1U.S.industrial market report|Q1 2025U.S.industrial market reportQ1 2025Page 2U.S.industrial market report|Q1 2025Industrial net absorption remained positive in 2024 but continued to decline as a whole due to global economic,political,and financial headwinds,coupled with record levels of new co

2、nstruction completions.Peak deliveries have passed in every market nationally,showcased by flattening vacancy rates throughout the country.The decline in deliveries is allowing markets to digest the excess space that flooded the sector for five quarters.Demand headwinds ramped up to start 2025,as tr

3、ade negotiations have fueled uncertainty,and severely limited trade with China.Resolutions are expected by the second half of the year and could lead to a drastic increase in industrial demand as supply chains revamp their near/reshoring efforts.National vacancy rate flat at highest point since 2012

4、8.7%U.S.industrial market trendsOverall leasing volume to start 2025 was slightly lower compared to historical levels.However,pre-leasing activity such as touring and expansion requirements for industrial demand picked up following the U.S.national election.Sudden and unexpected disruptions in trade

5、 negotiations have briefly paused decision-making,but once this uncertainty is resolved,industrial demand is expected to drive an increased need for companies to secure space to accommodate expanded manufacturing in the U.S.We are expecting an uptick in leasing in the second half of this year.Gross

6、leasing below pre-COVID 10-year average to start year-4.3%With improved policy clarity,advancing project pipelines,and growing confidence in long-term domestic production needs,manufacturing construction is expected to experience a significant resurgence in the second half of 2025 and after.The supp