Overview
- Newmark's market report Thursday said vacancies reached a two-decade high after record 2025 deliveries, even as net absorption totaled about 3.5 million square feet.
- Modern facilities gained about 8.2 million square feet of tenants in 2025 while legacy buildings lost about 3.9 million, leaving roughly 73% of empty space in older sites.
- Legacy vacancy stood near 7.6% in the fourth quarter and newer, high-spec facilities stayed tighter as users favored automation, energy savings, and faster throughput.
- The development pipeline fell to about 5.9 million square feet, yet projects under way are set to keep supply ahead of leasing in the near term.
- Rents have more than doubled since 2020, which is pushing some occupiers to build or buy specialized space as e-grocery and pharmaceutical cold chains expand long-run demand.