Analysts point to new tariffs imposed by the Trump administration as a key factor weighing on industrial development. This slowdown could undermine earlier expectations of a strong rebound in 2026.
As evidenced by Prologis Research’s U.S. Industrial Business Indicator, a post-pandemic building boom is coming to an end, with only 46 million square feet of speculative projects breaking ground in Q2. This will leave customers with dwindling options in many locations and size categories.
Industrial prices are being driven by a boom that began with COVID-19 and a market that has remained strong despite normalizing demand and muted transaction volume due to elevated interest rates.