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US industrial vacancy rate forecast to peak in 2026

Tenancy shifts from older to newer properties with some low pre-leasing
Twin Star Home, a maker and distributor of electric fireplaces that expanded to carry a broader collection of home furnishings and indoor/outdoor products, put its distribution center spanning more than 1 million square feet up for sublease at the Charleston Trade Center in Summerville, South Carolina. (CoStar)
Twin Star Home, a maker and distributor of electric fireplaces that expanded to carry a broader collection of home furnishings and indoor/outdoor products, put its distribution center spanning more than 1 million square feet up for sublease at the Charleston Trade Center in Summerville, South Carolina. (CoStar)
CoStar Analytics
February 4, 2026 | 12:13 AM

The latest CoStar forecast for the U.S. industrial real estate market projects a further rise in the vacancy rate, even as demand remains at levels similar to those seen over the past two years.

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