2025 Industrial Construction Cost Guide

period. Outside of U.S. markets, Toronto leads Canada’s industrial markets with nearly 46 msf of new industrial inventory added since 2022. Sao Paolo, Brazil, tops South America, with over 35 msf added during this time. Monterrey, Mexico, benefitting from its proximity to the U.S. border, has emerged as a hub for nearshoring in the last few years, adding over 22 msf of new space since 2022. Currently, Texas has nearly 48 msf of industrial inventory under construction, with the largest projects in the Dallas-Fort Worth (20 msf) and Houston (13 msf) markets. Construction activity remains elevated in Phoenix, with over 14 msf under construction, accounting for 3% of its existing inventory. Toronto continues to drive Canada’s construction pipeline with nearly 10 msf of industrial space under construction, though this is less than half its peak two years ago. The construction pipeline in Mexico City and Monterrey remain robust, with nearly 9 msf and 8 msf under construction, respectively. These are peak construction levels in Mexico; however, recent tariff policies could impact the construction pipeline in these markets going forward.

Absolute Basis: Completions Q1 2022 – Q1 2025

Central Valley CA Monterrey, Mexico Salt Lake City SanAntonio Charleston Nashville Austin NewJersey - Central

EasternUS Southeast US Southwest US WesternUS Northeast US Midwest US

Kansas City Philadelphia Las Vegas Sao Paulo, Brazil

Canada LATAM

Greenville Charlotte Columbus Toronto PA I-81/I-78 Corridor Indianapolis Savannah Chicago Inland Empire Houston Atlanta Phoenix Dallas/Ft. Worth

0 20

40 60 80 100 120 140 MSF

Source: Cushman & Wakefield Research

Currently Under Construction Markets with largest amount of square footage under construction (as of Q1 2025)

25

15%

20

12%

15

9%

10

6%

MSF

5

3%

0

0%

Boise

Austin

Seattle

El Paso

Denver

Atlanta

Omaha

Toronto

Phoenix

Chicago

Madison

Houston

Santiago

Nashville

Louisville

Savannah

Cleveland

Las Vegas

Monterrey

Richmond

Vancouver

MexicoCity

Kansas City

Jacksonville

Los Angeles

Philadelphia

InlandEmpire

HamptonRoads

Dallas/Ft.Worth

Raleigh/Durham

PA I-81/I-78Corridor

Under Construction UC as %of Inventory

Source: Cushman & Wakefield Research

*Latin America and Canada as of Q4 2024

2025 Industrial Construction Cost Guide 13