After a period of rising vacancies and subdued rent growth, the world’s largest warehouse owner and developer expects to ramp up property acquisitions in the coming months in a bet that industrial real estate demand will accelerate next year.
The 7.3% year-over-year increase is good news for landlords that have been coping with a supply surge, but the overall industrial market is still down from its record highs in 2022.
According to the NAIOP Industrial Space Demand Forecast, absorption in 2025 is expected to be around 249 million square feet, and the figure in the first half of 2026 could be about 154 million square feet, assuming there is a soft landing of interest rates. If a hard landing materializes, net absorption could significantly underperform.
The flood of warehouse space in Miami has been met by steady demand for new facilities fueled by positive demographic growth and robust port activity, long-term trends that bode well for future growth.