Key Takeaways
- • Industry Collaboration Framework: Prologis, JLL, Cushman & Wakefield, and Colliers released a unified 4Q25 U.S. logistics real estate market snapshot, combining proprietary Prologis Research methodology with real-time brokerage data across 34 leading U.S. logistics markets to improve consistency and transparency in market reporting.
- • Real-Time Data Integration: The report represents a first-of-its-kind brokerage average derived from real-time data, marking a structural improvement in how the logistics real estate sector tracks and disseminates market information to institutional investors and decision-makers.
- • Investment Volume Growth: Industrial investment volume increased 12% year-over-year to $104 billion, with transaction activity concentrated in newer and larger property assets, signaling renewed institutional capital deployment in the sector.
- • Vacancy and Rental Dynamics: The national vacancy rate stood at 7.5%, up 64 basis points year-over-year, while average asking rents reached $10.43 per square foot, reflecting evolving supply-demand dynamics in the logistics real estate market.
- • Construction Momentum: Industrial development showed recovery with construction activity up 9.2% year-over-year to 276 million square feet under construction, indicating renewed development confidence entering 2026.
Summary
Prologis has released its fourth-quarter 2025 U.S. logistics real estate market snapshot in collaboration with major commercial real estate advisors JLL, Cushman & Wakefield, and Colliers. The report applies Prologis Research's established proprietary methodology to available brokerage data while introducing a first-of-its-kind brokerage average constructed from real-time data spanning 34 leading U.S. logistics markets. This coordinated approach represents a notable advancement in industry data standardization, aiming to enhance consistency, transparency, and timeliness for institutional investors and capital allocators making informed deployment decisions.
Industrial investment volume demonstrated meaningful momentum in 4Q25, rising 12% year-over-year to $104 billion. This growth was supported by increased transaction activity centered on newer and larger property assets, reflecting institutional capital's preference for modern, scale-appropriate logistics facilities that meet contemporary supply-chain requirements. The composition of dealmaking underscores a market shift toward assets with competitive operational advantages and enhanced tenant credit profiles.
Market fundamentals reflected mixed pressures as the quarter concluded. The national vacancy rate reached 7.5%, representing a 64-basis-point increase year-over-year, suggesting ongoing supply additions outpacing normalized absorption. Simultaneously, average asking rents advanced to $10.43 per square foot, demonstrating that despite vacancy expansion, rental rates remained supported by underlying demand drivers and inflation indexation in lease structures.
Development activity rebounded markedly, with construction volumes increasing 9.2% year-over-year to 276 million square feet under construction. This expansion signals developer and lender confidence in the sector's trajectory as 2026 begins, with improved fundamentals, returning capital liquidity, and growing institutional conviction supporting new supply commitments. The coordinated market snapshot from Prologis, JLL, Cushman & Wakefield, and Colliers provides institutional investors with enhanced visibility into capital flows and sector dynamics as a new real estate cycle takes shape.
Industrial investment volume demonstrated meaningful momentum in 4Q25, rising 12% year-over-year to $104 billion. This growth was supported by increased transaction activity centered on newer and larger property assets, reflecting institutional capital's preference for modern, scale-appropriate logistics facilities that meet contemporary supply-chain requirements. The composition of dealmaking underscores a market shift toward assets with competitive operational advantages and enhanced tenant credit profiles.
Market fundamentals reflected mixed pressures as the quarter concluded. The national vacancy rate reached 7.5%, representing a 64-basis-point increase year-over-year, suggesting ongoing supply additions outpacing normalized absorption. Simultaneously, average asking rents advanced to $10.43 per square foot, demonstrating that despite vacancy expansion, rental rates remained supported by underlying demand drivers and inflation indexation in lease structures.
Development activity rebounded markedly, with construction volumes increasing 9.2% year-over-year to 276 million square feet under construction. This expansion signals developer and lender confidence in the sector's trajectory as 2026 begins, with improved fundamentals, returning capital liquidity, and growing institutional conviction supporting new supply commitments. The coordinated market snapshot from Prologis, JLL, Cushman & Wakefield, and Colliers provides institutional investors with enhanced visibility into capital flows and sector dynamics as a new real estate cycle takes shape.
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