Key Takeaways
- • Industrial vacancy declined 20 basis points quarter-over-quarter in Q2 2026 to 6.5%, marking the first decline since Q2 2022 and signaling a shift in market dynamics after sustained softness in the post-COVID cycle.
- • Net absorption accelerated sharply in Q2 2026, climbing 21% quarter-over-quarter to 62.1 million square feet, demonstrating renewed occupier confidence and demand momentum across the U.S. logistics real estate market.
- • Big-box leasing surged 58.3% year-over-year, with spaces of at least 500,000 square feet showing significant strength and indicating strategic expansion by major tenants.
- • Core industrial cap rates remained stable at 5.2% in Q2 2026, consistent with multifamily pricing and reflecting investor confidence in the sector's income-generating potential.
- • Prologis, in collaboration with Cushman & Wakefield, Colliers, JLL, and CBRE, released the 2Q26 snapshot covering 34 leading U.S. logistics markets, applying proprietary research methodology alongside real-time brokerage data to enhance market transparency and consistency.
Summary
The U.S. logistics real estate market entered the second half of 2026 with renewed momentum, as evidenced by Prologis's comprehensive 2Q26 Flash Report released in collaboration with five leading commercial real estate firms. The collaborative effort—involving Cushman & Wakefield, Colliers, JLL, CBRE, and Prologis Research—combines proprietary methodology with real-time brokerage data covering 34 leading U.S. logistics markets, establishing greater consistency and transparency across industry reporting.
The most significant indicator of market stabilization is the reversal of vacancy trends. The industrial vacancy rate fell 20 basis points quarter-over-quarter in Q2 to 6.5%, representing the first decline since Q2 2022. This marks a critical inflection point in the post-COVID cycle, as sustained demand finally overtook net supply additions. Concurrently, net absorption accelerated substantially, climbing 21% quarter-over-quarter to 62.1 million square feet, demonstrating robust occupier demand and confidence in strategic expansion decisions.
Demand strength is particularly evident in the big-box segment, where leasing of spaces of at least 500,000 square feet increased 58.3% year-over-year. This pronounced surge signals that major logistics operators and e-commerce players are actively pursuing large-format facilities to support distribution and fulfillment operations. Pricing remained resilient, with core industrial cap rates holding steady at 5.2%, matching multifamily pricing and reflecting investor appetite for logistics assets on a stabilizing operational foundation.
The collaborative reporting framework underscores the industry's commitment to delivering timely, consistent data to market participants. Contact information for research inquiries has been provided by each participating firm: Cushman & Wakefield (Jason S. Price), Colliers (Craig Hurvitz), JLL (Elizabeth Holder), and CBRE (James Breeze). The report serves institutional investors, REITs, and alternative investment professionals with actionable market intelligence as the sector transitions from a period of elevated vacancy and absorption challenges to renewed demand momentum.
The most significant indicator of market stabilization is the reversal of vacancy trends. The industrial vacancy rate fell 20 basis points quarter-over-quarter in Q2 to 6.5%, representing the first decline since Q2 2022. This marks a critical inflection point in the post-COVID cycle, as sustained demand finally overtook net supply additions. Concurrently, net absorption accelerated substantially, climbing 21% quarter-over-quarter to 62.1 million square feet, demonstrating robust occupier demand and confidence in strategic expansion decisions.
Demand strength is particularly evident in the big-box segment, where leasing of spaces of at least 500,000 square feet increased 58.3% year-over-year. This pronounced surge signals that major logistics operators and e-commerce players are actively pursuing large-format facilities to support distribution and fulfillment operations. Pricing remained resilient, with core industrial cap rates holding steady at 5.2%, matching multifamily pricing and reflecting investor appetite for logistics assets on a stabilizing operational foundation.
The collaborative reporting framework underscores the industry's commitment to delivering timely, consistent data to market participants. Contact information for research inquiries has been provided by each participating firm: Cushman & Wakefield (Jason S. Price), Colliers (Craig Hurvitz), JLL (Elizabeth Holder), and CBRE (James Breeze). The report serves institutional investors, REITs, and alternative investment professionals with actionable market intelligence as the sector transitions from a period of elevated vacancy and absorption challenges to renewed demand momentum.
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