Industrial Construction Starts Remain Uneven in 2026

Industrial construction starts have posted uneven monthly results over the past 12 months ending in August, reflecting continued volatility in development activity, according to the latest Yardi Matrix data.

In August, developers broke ground on roughly 16 million square feet—a 48 percent drop from a year ago, when construction starts totaled 30.7 million square feet.

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The first three months of 2026 also showed mixed activity. January saw 24.4 million square feet of new space underway, up 23.1 percent from the 19.8 million square feet that started construction in December, while February recorded 23.5 million square feet in construction starts.

March topped the first-quarter ranking at 33.4 million square feet of new industrial starts. The figure, 42.2 percent higher than the one of February, was also 33 percent higher year-over-year.

The sector’s development activity reached its 2026 peak in June, when 40 million square feet broke ground, marking a 23 percent year-over-year increase. Starts then fell to 22.2 million square feet in July, down 43 percent month-over-month and 25 percent year-over-year. The remaining months of 2026 could still shift the full-year picture.

Last year’s industrial construction also fluctuated

Last year also witnessed uneven construction activity. February recorded 22.1 million square feet in industrial groundbreakings, down 17.2 percent from the same month of 2024. Then construction starts kept increasing monthly until falling again to 26.1 million square feet in May and declining again by year-end.

The development activity of 2025 peaked in October, when 40.7 million square feet broke ground. At the time, that amount represented a 41 percent improvement year-over-year.

—Posted on Sept. 28, 2026