2025 Industrial Construction Cost Guide

Industrial Market Update

Industrial Demandand Construction

Industrial Deliveries Last 3 Years by Quarter

Absorption of industrial space in the Americas has been strong over the past five years, reaching a cyclical high of 653 million square feet (msf) in 2021. However, as demand slowed, absorption fell to 194 msf in the Americas by year-end 2024, turning negative in Canada. In response to slower demand, the global industrial construction pipeline waned from its recent highs. The slowdown also impacted construction in the Americas. By year-end 2024, the industrial construction pipeline in the Americas totaled 340 msf, a 34% decline from year-end 2023. Despite this slowdown, the pipeline remains above the five-year pre-pandemic (2015-2019) average of close to 290 msf per year. The construction pipeline slowdown has already led to reduced completion totals over the past six quarters. Completions peaked at 192 msf in the third quarter of 2023 but fell to 85 msf in the first quarter of 2025, nearly half the earlier level of new industrial space delivered. Despite the lower level of completions, the Americas accounts for just over 70% of total global industrial completions, continuing to lead the way in new construction.

300

250

200

150

MSF

100

50

0

2022Q1

2023Q1

2025Q1

2024Q1

2022Q3 United States Greater China 2022Q4

2023Q3 EMEA LATAM

2022Q2

2023Q2

2024Q3

2024Q2 Canada

2023Q4

2024Q4

APAC

Source: Cushman & Wakefield Research

Construction inKeyMarkets New industrial construction activity remains strong in Southern and Western U.S. markets. Southern markets have been particularly favored, with Atlanta, Houston and Dallas-Fort Worth adding a combined 323 msf of new industrial inventory between 2022 and 2025. In the West, Phoenix alone contributed 108 msf of new industrial inventory over the same three-year

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Cushman & Wakefield