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Lower outlook for industrial demand pushes vacancy forecast higher

Tenants grow more cautious about leasing amid trade uncertainty
The entire 500,403-square-foot warehouse at 13160 Napa St. in the Speedway Commerce Center remains available for lease after completing construction in early 2024 amid a general pullback in tenant demand. (CoStar)
The entire 500,403-square-foot warehouse at 13160 Napa St. in the Speedway Commerce Center remains available for lease after completing construction in early 2024 amid a general pullback in tenant demand. (CoStar)
CoStar Analytics
August 2, 2025 | 12:18 AM

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The U.S. industrial real estate market began 2025 with momentum, but recent data reveals a softening trajectory as tenant demand moderates and macroeconomic risks intensify.

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News | Lower outlook for industrial demand pushes vacancy forecast higher