Key Takeaways
- • Industrial vacancy compressed to 6.5% in Q2 2026, down 20 basis points quarter-over-quarter, reflecting tightening market conditions across the 34 leading U.S. logistics markets tracked by Prologis Research and major brokerages.
- • Net absorption accelerated 21% quarter-over-quarter to 62.1 million square feet, signaling robust demand recovery and momentum in logistics real estate leasing activity.
- • Big-box leasing (500,000+ sq. ft. spaces) surged 58.3% year-over-year, demonstrating renewed occupier confidence in large-format strategic expansion and e-commerce infrastructure deployment.
- • Leasing activity increased 11% year-over-year in Q2, outpacing the prior year period and indicating sustained institutional appetite for logistics assets across major U.S. markets.
- • Industrial cap rates stabilized at 5.2%, maintaining competitive valuations relative to other major commercial real estate sectors while reflecting balanced supply-demand dynamics.
Summary
Prologis, in collaboration with tier-one research firms Colliers, CBRE, Cushman & Wakefield, and JLL, released a comprehensive Q2 2026 U.S. logistics real estate market snapshot covering 34 leading logistics markets. The collaborative report applies Prologis Research's proprietary methodology alongside real-time brokerage data, establishing standardized metrics designed to enhance transparency and consistency across the institutional real estate market.
Market tightening accelerated in the second quarter, with the industrial vacancy rate declining 20 basis points quarter-over-quarter to 6.5%, demonstrating supply-demand convergence. Net absorption momentum increased sharply, climbing 21% quarter-over-quarter to 62.1 million square feet, according to Cushman & Wakefield data. This acceleration reflects renewed institutional and occupier confidence in logistics expansion following moderation in construction activity and elevated supply conditions that characterized earlier 2026.
Leasing velocity strengthened across the institutional market, with year-over-year leasing activity increasing 11%. Most significantly, big-box leasing—transactions for spaces of at least 500,000 square feet—increased 58.3% year-over-year, signaling strategic expansion by major e-commerce and third-party logistics operators. This surge in large-format demand underscores the continued structural importance of modern logistics infrastructure to supply chain operations.
Cap rate stabilization at 5.2% for industrial assets reflects balanced market conditions, with pricing anchored between depressed 2023-2024 valuations and normalized pre-pandemic metrics. While active inventory remains elevated at 10% above year-ago levels, total listings remain 16–17% below pre-2020 baseline levels, indicating ongoing supply recovery rather than market saturation. The collaborative report framework signals the industry's commitment to consistent, real-time transparency for institutional market participants navigating capital allocation decisions across the logistics sector.
Market tightening accelerated in the second quarter, with the industrial vacancy rate declining 20 basis points quarter-over-quarter to 6.5%, demonstrating supply-demand convergence. Net absorption momentum increased sharply, climbing 21% quarter-over-quarter to 62.1 million square feet, according to Cushman & Wakefield data. This acceleration reflects renewed institutional and occupier confidence in logistics expansion following moderation in construction activity and elevated supply conditions that characterized earlier 2026.
Leasing velocity strengthened across the institutional market, with year-over-year leasing activity increasing 11%. Most significantly, big-box leasing—transactions for spaces of at least 500,000 square feet—increased 58.3% year-over-year, signaling strategic expansion by major e-commerce and third-party logistics operators. This surge in large-format demand underscores the continued structural importance of modern logistics infrastructure to supply chain operations.
Cap rate stabilization at 5.2% for industrial assets reflects balanced market conditions, with pricing anchored between depressed 2023-2024 valuations and normalized pre-pandemic metrics. While active inventory remains elevated at 10% above year-ago levels, total listings remain 16–17% below pre-2020 baseline levels, indicating ongoing supply recovery rather than market saturation. The collaborative report framework signals the industry's commitment to consistent, real-time transparency for institutional market participants navigating capital allocation decisions across the logistics sector.
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