Warehouse developers are breaking ground on new buildings, betting that a yearslong slump in industrial real-estate demand is over.
More than 305 million square feet of warehouse space was under construction across the U.S. in the second quarter, up 18% from 2025 and the second consecutive quarter of annual growth, according to real-estate services firm Cushman & Wakefield.
The growing development pipeline is a significant shift from the slow construction activity of the past several years. Weak leasing activity and an overabundance of space combined to push the nationwide vacancy rate up to an 11-year high last year and led many developers to pare back construction plans.
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