U.S. industrial vacancy is projected to rise into early 2027, according to a revised forecast from CoStar Group. The national vacancy rate remains in the mid-7% range entering the second quarter of 2026 and is expected to edge higher into 2027 before beginning a gradual descent.
CoStar said Thursday the forecasted vacancy rate is slightly higher than previous expectations. Demand in 2027, while projected to remain higher than 2026, is estimated to come in lower than the prior forecast.
“While leasing activity for industrial space has held up better than initially expected, the recovery path continues to lengthen as stabilizing demand struggles to fully absorb the new space delivered over the last four years,” said Juan Arias, national director of industrial analytics at CoStar Group.
Average annual rent growth over the 2026-27 period has been lowered. It’s now forecasted at +1.6%, with a slower recovery toward 2% annual growth by late 2027.
The post CoStar: Industrial Vacancy Will Peak in Early 2027 appeared first on Connect CRE.
