The latest CommercialSearch report on industrial real estate trends shows that currently, 346.2 million square feet of industrial space is under construction nationwide—1.7% of the national stock—but development has slowed, down 25% from last year and 33% from 2023.
“Industrial is still a bright spot in commercial real estate, even as pressures from market uncertainties and stubbornly high interest rates drive down new starts. As vacancies reach equilibrium and begin to tick down – potentially at the end of 2025 or early 2026 – significant investments in reshoring and the need to expand supply line logistics should provide a boost in development in the latter end of the decade,” says Peter Kolaczynski, director, CommercialEdge.
Denver takeaways:
- With more than 6.7 million square feet of industrial space currently under construction, Denver ranks as the 14th most active market for industrial development in 2025.
- The ongoing construction will expand Denver’s industrial stock by more than 2.4%, marking the 9th-largest expansion within the ranking.
- The 3.5 million-square-foot Amazon facility at 6425 Byrd Drive in Loveland in metro Denver is slated to be this year’s 5th-largest industrial completion.
General key takeaways:
- Savannah’s 17-million-square-foot Hyundai EV Manufacturing Plant tops the list of largest industrial deliveries slated for completion in 2025.
- Consequently, Savannah also claimed the top spot for industrial space, with 24.7 million square feet of space currently under development.
- Nationwide, industrial space under construction has dropped 25% year-over-year, reflecting a continued decline in development pipelines across most markets.
- At the start of 2025, half of the 10 markets with the largest pipelines had less industrial space under construction than they did at the beginning of 2024.
- Among the largest industrial projects set for completion this year, five are EV plants or EV battery facilities, along with a chip plant and a data center.
- The 10 largest industrial completions of 2024 were all logistics facilities, with eight being multi-building expansions within industrial parks.
Explore the complete findings in the CommercialSearch report here: https://www.commercialsearch.com/blog/national-industrial-construction-report/
