Top 10 Emerging Industrial Markets

Industrial growth across emerging U.S. markets is diverging, with each area charting its own trajectory. Performance is splitting across three distinct paths: markets benefiting from supply discipline, those undergoing pricing recalibration and those expanding through targeted development. Some are capitalizing on tight pipelines that continue to push values higher. Others are adjusting after recent volatility, creating more attractive entry points. A third group is building aggressively, with new supply tied to port activity, manufacturing investment and expanding logistics corridors.

Using year-end 2025 data, Commercial Property Executive identified 10 markets where construction trends, pricing shifts and sustained sales activity signal rising relevance beyond traditional industrial gateways. Wilmington, N.C., stands out for the scale of its expansion, with development equal to more than 21 percent of existing inventory. Columbia, S.C., posted one of the strongest annual pricing gains in the ranking, with values more than doubling year-over-year.

El Paso, Texas, and Mobile, Ala., continue to benefit from cross-border trade and Gulf Coast logistics flows, while value-oriented Youngstown, Ohio, offers low entry pricing coupled with steady liquidity and disciplined supply additions.

Employment growth across the group remains moderate but supportive of tenant demand. Together, these hubs demonstrate how an emerging industrial market can gain prominence through strategic positioning, measured growth and disciplined capital deployment. Drawing on the most recent data from Yardi Matrix, we examined how these regions are reshaping the U.S. industrial landscape. Here are this year’s 10 emerging industrial markets:

El Paso, Texas

El Paso’s industrial sector continued to show steady value growth throughout 2025, supported by strong fundamentals and consistent tenant activity. By the end of 2025, 5.4 million square feet of industrial space was under construction across 17 projects—about 6.8 percent of existing stock—signaling confidence in long-term demand without oversupply risk. Notable developments included last-mile logistics centers near the border and large-scale manufacturing facilities.

Investment pricing also continued to trend upward. Industrial assets averaged $127.44 per square foot in 2025, up 8.8 percent year-over-year. While growth is middling nationally, it reflects heightened investor interest, particularly given El Paso’s lower entry pricing compared with other Texas markets. El Paso’s positioning along key trade routes reinforces its role as a competitive emerging industrial market with long-term upside.

Sales volume reached $191.5 million in 2025, as per Yardi Matrix, highlighting active transaction flow. Labor conditions further bolstered demand; Employment in industrial sectors rose 2 percent year-over-year through December 2025, outpacing many competing hubs. Robust cross-border trade, logistics operations and manufacturing activity—especially warehousing for maquiladoras and regional distribution centers—continue to drive tenant demand and support overall market resilience.

Little Rock, Ark.

Strong pricing momentum, rather than large-scale development, is what sets Little Rock’s industrial market apart among secondary metros. The market encompasses some 61.7 million square feet of industrial space, yet only 1.1 million square feet was under construction as of December 2025—just 1.8 percent of total inventory. This restrained pipeline supported rapid asset appreciation while keeping oversupply risk in check.

Pricing growth has been the standout story. Industrial properties traded at an average of $56.96 per square foot in 2025, a figure that reflects a sharp 38.8 percent year-over-year increase—one of the strongest jumps among comparable markets. Although values remain below national norms in absolute terms, the rate of appreciation points to a clear repricing phase driven by tighter availability and heightened investor interest. This acceleration underscores Little Rock’s evolution into an emerging industrial market attracting renewed capital attention.

Investment activity kept pace. Total industrial sales volume reached $176.6 million in 2025, placing the market in the upper tier for transaction activity relative to its size. Labor trends provide further stability: Industrial employment rose 1.9 percent year-over-year through December 2025, supporting continued demand for logistics, manufacturing and warehouse space.

Columbia, S.C.

Columbia’s industrial market is undergoing a pronounced valuation reset, driven by active development and rapid price acceleration. The metro contains roughly 44 million square feet of industrial space—smaller than many peer markets—but is supported by a notably robust construction pipeline.

As of December 2025, 3.9 million square feet of industrial space was underway across eight projects, representing 8.8 percent of existing inventory—one of the highest development ratios among secondary markets. Current projects range from logistics hubs along key regional corridors to large-scale manufacturing facilities.

This supply-side expansion aligned with exceptional pricing gains. Industrial assets averaged $65.98 per square foot in 2025, marking a 114 percent year-over-year increase. While transaction volume remained modest at about $54.8 million, pricing growth places Columbia among the top-performing markets nationally. The surge reflects heightened investor interest and a swift reassessment of asset values rather than broad liquidity.

Employment fundamentals were steady but measured, with industrial jobs rising just over 1 percent through December 2025. Combined with Columbia’s strategic positioning along major logistics routes and its expanding industrial footprint, these factors support a transition from lower-cost status to a more competitively priced regional hub, making it one of the most closely watched emerging industrial markets in the Southeast.

Wilmington, N.C.

Industrial growth in Wilmington ranks among the strongest in emerging U.S. markets, propelled by aggressive development activity and sharp pricing gains. The metro contains just under 18 million square feet of industrial space—relatively small, but expanding quickly. As of December 2025, nearly 3.8 million square feet was underway across four projects, equal to 21.6 percent of existing inventory—the highest construction-to-stock ratio among peer markets. Key projects include port-adjacent distribution centers and regional logistics hubs, reflecting robust forward-looking demand and a rapidly evolving industrial profile.

Pricing trends reinforce this momentum. Industrial assets averaged $123.67 per square foot in 2025, representing a 101 percent year-over-year increase. Although total sales volume was modest at $16.5 million, the pricing surge points to an accelerated repricing phase, with investors positioning early to capture Wilmington’s expanding role in regional logistics and port-linked distribution.

Labor fundamentals added further support. Industrial employment rose 1.9 percent year-over-year through December 2025, ranking among the strongest performers in comparable markets and underpinning steady tenant demand. Wilmington’s combination of an aggressive development pipeline and rapid value appreciation firmly positions it as a fast-growing emerging industrial market tied to port-driven demand.

Mobile, Ala.

Industrial activity in Mobile continues to gain traction as a value-driven Southern port market, where pricing growth and development are increasingly aligned. The market’s industrial inventory totals roughly 40 million square feet, supported by a pipeline of nearly 3.7 million square feet across three projects as of the end of 2025, according to Yardi Matrix. At 9.2 percent of existing stock, development is elevated for a market of this size, reflecting rising confidence tied to port throughput, manufacturing expansion and broader Gulf Coast logistics activity.

Asset values also climbed sharply. Industrial properties averaged $55.95 per square foot in 2025, an increase of 44.6 percent year-over-year. Although pricing remains below national benchmarks in absolute terms, the speed of appreciation signals a market in transition, with investors repricing assets around strengthening fundamentals and longer-term growth prospects.

Sales activity further supports this momentum. Total volume reached $114.6 million in 2025, placing Mobile in the upper tier of emerging markets for deal flow and indicating healthy liquidity. Employment trends, however, were more moderate; Industrial jobs were largely flat over the same period. The market’s appeal lies less in immediate labor expansion and more in its strategic coastal position, transportation linkages and scalable industrial footprint—all drivers of sustained regional demand.

Southwest Florida Coast

The Southwest Florida Coast industrial market stands out for its scale, liquidity and premium pricing rather than rapid expansion. The region contains roughly 65 million square feet of industrial space—among the largest inventories in the ranking—while development has remained measured in 2025. As of December 2025, only 1.8 million square feet was under construction across 11 projects, equal to 2.8 percent of existing stock. This restrained pipeline reflects disciplined growth in a market that has already undergone significant buildout.

Pricing underwent a reset in 2025 but remains elevated. Industrial assets averaged $160.67 per square foot, a 6.7 percent year-over-year decline that signals normalization after several years of outsized gains rather than weakening fundamentals. Investment activity stayed strong as well; Total sales volume reached $324.9 million in 2025, ranking third among peer markets and highlighting the depth and liquidity of the region’s investor base.

Employment trends continue to support tenant demand. Industrial jobs rose 1.3 percent year-over-year through December 2025, boosted by ongoing population growth and a strong regional distribution network. Together, these dynamics reinforce the Southwest Florida Coast’s position as a mature and resilient industrial hub—one that continues to attract investors seeking stability, liquidity and long-term growth potential. This adds to Florida’s strong array of industrial markets, with Miami, Tampa, Jacksonville and Orlando industrial space also solid.

Charleston, S.C.

Charleston’s industrial market stands out for its scale and tightening supply, positioning the metro as one of the more established yet still upward-moving players among its peers. The metro contains roughly 85 million square feet of industrial space—one of the largest inventories in the ranking—yet new development has nearly stalled. As of December 2025, only 27,000 square feet was underway across a single project, representing one of the lowest pipeline ratios nationally and underscoring a distinctly constrained supply environment.

This imbalance translated into notable pricing strength. Industrial assets averaged $123.56 per square foot in 2025, up 43.9 percent year-over-year. While not the most dramatic increase in the ranking, the combination of limited new supply and consistent tenant demand continues to exert upward pressure on values. Total sales volume reached $185.8 million last year, highlighting sustained investor interest and liquidity.

Labor fundamentals reinforce the market’s momentum. Industrial employment rose 2.2 percent year-over-year through December 2025—among the strongest gains in the group. The blend of large-scale inventory, minimal construction and above-average job growth continues to support Charleston’s appeal within the evolving industrial landscape. With tightening supply and rising values, the metro is steadily strengthening its profile as an emerging industrial market with durable long-term fundamentals.

Central East Texas

Central East Texas reflects a cyclical industrial story, where strong job growth and low entry costs contrast with a sharp pricing reset. The region contains 63.7 million square feet of industrial space, placing it among the larger emerging markets. Development remains measured: about 1.7 million square feet was underway across eight projects as of December 2025, equal to 2.7 percent of existing stock. New supply is centered on mid-sized distribution facilities along highway corridors and manufacturing expansions tied to regional supply chains, rather than large speculative megaprojects.

Pricing adjusted significantly. Industrial assets averaged $35.02 per square foot in 2025, a 48.4 percent year-over-year decline—one of the steepest drops among peer markets. However, the decline signals a recalibration following earlier volatility rather than a deterioration in underlying fundamentals.

At the same time, liquidity has held firm. Sales volume reached $132.9 million in 2025, ranking in the upper tier for transaction activity. Employment growth was notably strong, rising 2.8 percent year-over-year through December 2025—one of the highest rates in the group—and supporting tenant demand across manufacturing, assembly and regional distribution. Affordable pricing and expanding payrolls position Central East Texas for a more balanced and sustainable next phase.

Madison, Wis.

Steady value gains and a contained development pipeline continue to shape industrial growth in Madison. The market contains roughly 52 million square feet of industrial space, placing it in the middle tier among emerging markets.

Just over 3.4 million square feet was under construction as of late December 2025—6.5 percent of existing stock—driven largely by a single major project: an Amazon fulfillment facility in Cottage Grove. This modern bulk warehouse significantly boosted overall construction activity and helped the market log its strongest quarterly absorption levels in several periods during 2025, underscoring persistent demand from regional distribution and advanced manufacturing users.

Pricing advanced at a measured but healthy pace. Industrial assets averaged $74.20 per square foot in 2025, up 30.8 percent year-over-year. Transaction activity remained steady, with $82.5 million in total sales—appropriate for a market of this size and indicative of consistent investor engagement. Employment growth was largely flat in 2025, suggesting that tenant expansion has stabilized even as leasing fundamentals and pricing remain supportive.

Youngstown, Ohio

Youngstown’s industrial sector is defined by affordability, steady liquidity and disciplined supply. The market encompasses roughly 74.3 million square feet of industrial space, with 1.47 million square feet under construction as of December 2025—about 2 percent of existing stock. This measured pipeline consists primarily of mid-sized warehouse and distribution projects serving regional manufacturing and logistics users, signaling continued tenant demand without speculative oversupply.

In 2025, pricing underwent a sharp reset. Industrial assets averaged $16.36 per square foot in 2025, reflecting a 70 percent year-over-year decline. While the correction is substantial, it positions Youngstown as one of the most affordable industrial hubs in the ranking, creating a lower cost basis for investors seeking yield and long-term upside.

Total sales volume reached $157.2 million in 2025—comparable to figures seen in larger peer markets and indicative of steady transaction activity. Employment trends also supported demand, with industrial jobs rising 1.4 percent year-over-year, reinforcing stable tenant requirements tied to advanced manufacturing, warehousing and regional distribution. Youngstown’s combination of low pricing and consistent liquidity underscores how an emerging industrial market can attract buyers focused on long-term value creation.

Methodology

The methodology behind the Top 10 Emerging Industrial Markets ranking leverages data from Yardi Matrix, complemented by an analysis of the U.S. Census Bureau’s annual employment growth rate. Our rankings are determined based on metrics recorded up until December 2025.

Factors considered in our methodology encompass the volume of industrial construction underway, industrial sales volume for the year 2025, pricing per square foot, the annual change in price per square foot and job growth specific to the industry. We believe this ranking methodically balances the considerations of growth potential and the overall size of the market.