The national industrial sector continues to cool as the record supply of recent years works its way through the market. According to CommercialEdge’s industrial report for April, the national vacancy rate rose to 8.8% — up 30 basis points from March and more than double pre-2022 levels.

While oversupply is still exerting upward pressure on vacancy, the pace of new deliveries has been slowing. If this trend holds, vacancy is expected to level off later this year.

Specifically, national in-place rents averaged $8.49 per square foot in April for a $.05 increase from the prior month and 6.7% climb year-over-year. Meanwhile, as vacancies rise, rent premiums on new leases are narrowing: The premium fell to $1.80 per square foot, down from $2.35 a year earlier. Still, spreads remained wide in select high-demand markets, including Bridgeport, Conn. ($5.90); Boston ($4.79); and Miami ($3.72).

However, New Jersey posted the fastest year-over-year rent growth among major markets at 10.5%, followed by Nashville, Tenn., (10.3%) and Miami (9.7%). Notably, six of the seven slowest-growing markets were in the Midwest, including Memphis, Tenn. (3.7%); Kansas City, Mo. (3.8%); and Chicago (4.4%). The region’s abundant land and slower population growth continue to temper rent gains.

DFW Claims More Than 11% of National Industrial Pipeline

Roughly 359 million square feet of industrial space was under construction nationwide in April, which equates to 1.7% of the total inventory.

Even so, activity remains concentrated in high-growth markets. For instance, Dallas-Fort Worth led the nation with 25 million square feet underway, representing more than 11% of the national pipeline. Houston followed at 15.8 million square feet, which is more than double its year-ago total. And, Phoenix had 15.4 million square feet under construction, down from its leading position in 2023.

At the same time, Memphis, Tenn., reported 12.5 million square feet underway. Inland Empire, Calif.; Atlanta; and Kansas City, Mo., also had more than 8 million square feet in development.

Coastal Markets Lead Pricing, New Jersey Tops Investment Volume at $1.1B

Industrial investment reached $15.5 billion through the first four months of 2025 with properties trading at an average of $129 per square foot. For context, total Q1 volume stood at $11.7 billion.

Once again, New Jersey led all markets in transaction volume at $1.1 billion, followed by Dallas-Fort Worth ($944 million), Chicago ($790 million), Phoenix ($709 million) and Los Angeles ($671 million).

But, coastal markets continued to command the highest pricing: Los Angeles averaged $300 per square foot, followed by Orange County in California ($293) and New Jersey ($281). Lastly, Phoenix traded at $184 per square foot, while Chicago and Dallas posted more moderate averages of $96 and $98, respectively.

For additional insights into all key industrial markets in the U.S., see the original report.