U.S. industrial vacancy held steady at 6.8% in Q1 2026 — the first non-rising quarter since mid-2023 — according to Cushman & Wakefield. New construction starts have fallen sharply, allowing demand to catch up to supply.
Last-mile logistics (under 200,000 sf, infill locations) remains the tightest segment at 4.1% vacancy. Bulk distribution (500,000+ sf) is materially softer at 8.9%.
For DST sponsors and 1031 buyers, industrial remains an attractive replacement category — particularly smaller last-mile assets with long-term creditworthy tenants.