Top Markets for Industrial Development in 2025

Industrial real estate’s next stage of growth will be defined by trade policy decisions and a much bigger need for efficiency across operations. After the speculative surge from 2022 to 2024 resulted in above-average delivery volumes, industrial real estate market trends now point to a more moderate approach. This latest ranking of the top markets for industrial development, based on Yardi Matrix data, illustrates that sentiment across the U.S.

Overall, completions decreased across the nation in 2025, but some hotspots remained, while the structural drivers in each of these markets led to significant activity.

Takeaways:

• These 10 markets combined had more than a third of all U.S. industrial completions in 2025
• Deliveries decreased 26.8 percent year-over-year nationwide
• Philadelphia, Houston, Austin, Texas, and Los Angeles were the only markets on this list where the deliveries increased year-over-year
• Philadelphia completions more than tripled year-over-year

Dallas-Fort Worth

The Metroplex topped the list for industrial development in 2025, with 21.3 million square feet of space coming online across 114 projects. That was nearly 28 percent less than the total amount delivered in 2024.

At the end of last year, a total of 28.6 million square feet was under construction across Dallas-Fort Worth. Developers broke ground on 108 projects, or 24.9 million square feet in 2025, on par with the 24.7 million square feet that started construction a year prior, highlighting the market’s sustained momentum.

One of the largest properties to come online in the metro in 2025 was Alliance Westport 14, part of Hillwood’s AllianceTexas, a 27,000-acre master-planned campus. The 767,000-square-foot facility is owned and operated by Wistron, an electronics manufacturer. In August last year, Wistron closed a $761 million deal with Hillwood to construct two AI supercomputing plants totaling 1.1 million square feet within the campus.

The Alliance global logistics hub is a part of the Dallas-Fort Worth inland port ecosystem, which contributes to the market’s massive industrial sector, attracting a wide variety of tenants, from big-box distribution and e-commerce fulfillment to manufacturing and transportation-oriented warehousing.

Houston

Houston came in at number two among the top markets for industrial development, with a little more than 19 million square feet delivered across 101 projects. The metro was one of four on this list where completions increased since 2024—up 48.6 percent.

Global trade flowing through the Port of Houston, along with investments in energy, petrochemicals, transportation and manufacturing have kept the metro a priority among top commercial development companies last year.

Trammell Crow Co. built the largest property to come online last year—the 752,134-square-foot Carpenters Logistics Center – Building 1, near the port area. TCC is one of the most active industrial developers in Houston. In September last year, it also completed Blue Ridge Commerce Center—a five-building campus totaling 1.4 million square feet—in partnership with Daiwa House Texas.

Developers broke ground on 155 projects encompassing 23.2 million square feet in 2025, a 36.3 percent increase year-over-year. At the beginning of 2026, there were 20.4 million square feet of Houston industrial space under construction.

Phoenix

Phoenix rounded out the top three U.S. markets for industrial development last year, with 17.9 million square feet added to its inventory across 96 projects. The metro had to work through potential oversupply risks, as previous years recorded a surge in speculative construction, followed by the largest year-over-year decline in completions on this list, down 51.4 percent.

Phoenix’s status as a hub for both rapidly growing manufacturing and established regional distribution will continue to drive demand, albeit at a more measured pace. Semiconductors contributed to a new wave of industrial development, spearheaded by TSMC’s $65 billion campus. Last year, the company broke ground on a third facility at the site, aiming to invest another $100 billion.

Construction starts amounted to 13.1 million square feet in 2025, roughly 2.7 million less than 2024’s total—down 17.3 percent. At the start of the year, Phoenix had a total of 17.6 million square feet of industrial space underway.

LG Energy Solution’s $5.5 billion battery plant in Queen Creek, Ariz., was among the largest developments underway at the start of this year. In 2024, the Seoul-based manufacturer entered into a ground lease agreement with U.S. Realty Advisors, which will also provide capital for the build-to-suit project.

Philadelphia

Philadelphia developers added 13.6 million square feet of industrial space to the market’s inventory last year, more than triple the amount delivered in 2024, marking the sharpest increase on this list. Last year was likely a catch-up one for the metro, as it had a significant amount of space underway that broke ground in 2023 and 2024.

In June last year, Portman Holdings completed the first phase of I-76 Trade Center, comprising a 636,121-square-foot facility. The $330 million development is planned to include 1.9 million square feet.

Anchored by infill distribution and last-mile logistics serving the Northeast, Philadelphia’s industrial market hit the tail end of the post-pandemic speculative wave later than other metros.

At the beginning of 2026, the market had 4.3 million square feet of space underway, as new construction is now winding down. New starts dropped dramatically—a total of 2.9 million square feet broke ground in 2025, down 74.5 percent year-over-year.

Austin, Texas

The third Texas metro on this list, Austin, rounded out the top five markets for industrial development last year, with 10.6 million square feet delivered across 90 projects—on par with the 10.3 million square feet that came online in 2024. Last year, the market ranked first in the STEM Job Growth Index published by RCLCO, as more than 11 percent of all jobs were in such fields.

Manufacturing and tech, especially EV and electronics, are partly behind the metro’s industrial sector growth, driving supply chain expansion. Samsung’s $17 billion chip factory in Taylor, Texas, has contributed to a lot of supportive infrastructure and facilities shaping up.

Last year, iMarketAmerica started work on its first project in the Texas capital, Gradient Technology Park. The 2.2 million-square-foot campus will include heavy industrial and mixed-use space serving the semiconductor industry.

However, developers are winding down in Austin as well, as the market is still absorbing the last batch of space. In 2025, slightly more than 6 million square feet broke ground across the metro, nearly half of the 11 million square feet that started construction in 2024. At the beginning of this year, Austin had 10.4 million square feet underway.

Charlotte, N.C.

A total of 40 projects came online in Charlotte last year, totaling 9.9 million square feet of industrial space, down just 5.6 percent from the 10.5 million square feet and 42 developments that were completed in 2024.

Tenants’ interest in the metro remains solid. Charlotte’s connectivity to East Coast ports and expanding air cargo capacity provide support for a mix of distribution, light manufacturing and supply chain demands across the region. Last year, IDI Logistics broke ground on a new facility in the Airport submarket, slated to come online later this year.

Bucking nationwide trends, Charlotte developers increased their activity year-over-year. In 2025, a total of 10 million square feet broke ground, nearly double the 5.2 million square feet that started construction a year prior. At the beginning of this year, the metro had 8.2 million square feet under construction across 28 projects.

Chicago

Chicago ranked seventh among the top markets for industrial development in 2025, with just under 8 million square feet of space coming online across 30 projects. Completions were down to half of the total recorded in 2024—15.9 million square feet across 45 properties.

Chicago’s industrial market remains essential for the U.S. economy through its status as the largest intermodal hub in the nation. Speculative development has greatly diminished in the past two years across the nation, but Chicago is one of the exceptions, partly driven by solid bulk leasing activity.

One of the largest industrial properties underway in the metro is a 970,123-square-foot facility developed by Hillwood Investment Properties and Clarius Partners. The speculative project is slated to come online in the third quarter of this year.

New starts amounted to 11.7 million square feet in 2025, up 61.9 percent year-over-year, as demand in the market was still strong despite economic uncertainty. At the beginning of this year, Chicago had 12.3 million square feet of industrial space under construction.

Las Vegas

Las Vegas came in at rank eight, with developers adding 5.8 million square feet of industrial space across 43 projects last year, down to less than half the 12.9 million square feet and 52 properties delivered in 2024.

Connectivity to Western U.S. logistics networks is a main driver for Las Vegas’ industrial market. This continues to attract tenants, from e-commerce fulfillment to last-mile and regional distributors that spill over from high-cost West Coast markets. In an interview with Commercial Property Executive, CapRock Partners’ Taylor Arnett, senior vice president of acquisitions, said that Las Vegas shifted in recent years from an undersupplied to an oversupplied market, prompting a flight to quality from tenants.

In September last year, Lincoln Property Co. completed Windsor Commerce Park, its first ground-up industrial project in Nevada. The eight-building campus totals 1.6 million square feet and features a mix of regional and global tenants.

A total of 13 projects, encompassing 4.9 million square feet, broke ground across the metro last year. Las Vegas developers favored larger footprints on average, as highlighted by the 4.6 million square feet and 35 projects that started construction in 2024. At the beginning of this year, there were 4.8 million square feet underway in the metro.

Los Angeles

Los Angeles developers added 5.8 million square feet of industrial space across 34 projects last year, on par with the 5.7 million square feet and 36 properties completed in 2024.

Anchored by the Ports of Los Angeles and Long Beach, industrial market dynamics across the region are heavily impacted by trade policy uncertainty, as well as a scarcity of infill space. This has pushed some major development efforts toward the northern end of Los Angeles County, in Lancaster, Calif., San Fernando Valley and Thousand Oaks in Ventura County.

The two largest assets completed last year are both in the Antelope Valley submarket, near Lancaster. One of them is a Trader Joe’s food assembly and distribution facility measuring 827,000 square feet, while the second one is NorthPoint Development’s 647,757-square-foot facility within its Fox Field Commerce Center.

A total of 2.9 million square feet broke ground in 2025 across the metro, encompassed in just 20 projects. This was a significant decline from the 5.3 million square feet and 28 developments that started work a year prior.

Stream Realty Partners broke ground on 101 Logistics Center in June last year, a four-building campus set to measure 738,000 square feet upon completion. At the beginning of this year, Los Angeles had just under 4 million square feet underway.

Orlando, Fla.

Orlando closed off the top 10 markets for industrial development in 2025, with 4.6 million square feet delivered across 36 projects. That was 1 million less than the total recorded in 2024, which saw 35 industrial developments come online.

Rapid population and job growth sustain Florida’s economic expansion in recent years, in turn creating a surge in demand for logistics. The I-4 corridor is evolving as a statewide hub to meet these demands, partly through Orlando’s growing industrial footprint.

Constellation Real Estate Partners completed the largest asset to come online in 2025, a 456,000-square-foot building that is part of the developer’s Constellation Air Commerce Park near the Orlando International Airport. In the eastern part of the metro, Stonemont Financial Group delivered 429 Business Center, a 259,255-square-foot campus that comprises seven buildings.

Construction starts greatly diminished across Orlando as well. Only 1.4 million square feet in 17 projects broke ground last year, down to roughly a third from the 4.1 million square feet and 25 developments that started construction in 2024. At the beginning of this year, Orlando had 2 million square feet of industrial space underway, across 13 assets.