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Warehouse development slows as construction costs outpace rent growth

Pressure expected to intensify later this year
Amazon is building a 1.7 million-square-foot facility at 1221 W Industrial Blvd in Cleburne, Texas. (CoStar)
Amazon is building a 1.7 million-square-foot facility at 1221 W Industrial Blvd in Cleburne, Texas. (CoStar)
CoStar Analytics
August 12, 2026 | 6:25 P.M.

Rising warehouse construction costs are beginning to restrain development as the logistics sector works through a supply overhang from the pandemic-era building boom.

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