# CBRE: U.S. Industrial Absorbed 104.6 Million Square Feet in Q3 2026, Highest Since 2022 > Demand outpaced deliveries for a second straight quarter as completions ran 17% below last year's pace. Dallas-Fort Worth led year-to-date absorption at 23.6 million square feet but also held the largest construction pipeline at 34.4 million square feet. - URL: https://www.yourcaio.co/news/cbre-q3-2026-industrial-104-6-million-sf-absorption-november-2026 - Published: 2026-11-10 - Author: David Cartolano (https://www.yourcaio.co/about) - Category: Market Trends - Property type: Industrial - Tags: CBRE, Industrial Absorption, Vacancy, Dallas-Fort Worth, Industrial Rents - Source: [CBRE Research](https://www.cbre.com/insights/figures/q3-2026-us-industrial-and-logistics-market-report) ## Key Takeaways - CBRE reported October 23, 2026 that U.S. industrial net absorption totaled 104.6 million square feet in Q3 2026, the highest quarterly total since Q4 2022 and above the 10-year quarterly average of 82.9 million square feet. - National industrial vacancy fell 20 basis points year over year to 6.4%, and availability fell 30 basis points to 8.9%, per CBRE Research. - Average net asking rent rose 3.6% year over year to $11.16 per square foot, while Q3 leasing increased 27.1% to 276.8 million square feet. - Year-to-date net absorption reached 237.8 million square feet, up from 97.7 million square feet in the same period last year, with Dallas-Fort Worth leading at 23.6 million square feet. - Q3 completions were 79.4 million square feet and year-to-date deliveries of 182.7 million square feet ran 17% below last year, even as space under construction rose 9.3% year over year to 278 million square feet. **U.S. industrial net absorption reached 104.6 million square feet in Q3 2026**, the **highest quarterly total since Q4 2022**, **CBRE Research reported October 23, 2026**, with **vacancy down 20 basis points year over year to 6.4%** and **average net asking rent up 3.6% to $11.16 per square foot**. **Leasing** ran **276.8 million square feet**, **up 27.1% year over year**. **Year-to-date absorption** hit **237.8 million square feet**, versus **97.7 million** in the same stretch last year. **Dallas-Fort Worth** led that YTD list at **23.6 million square feet**. The recovery is **real** and **uneven**. **Properties built from 2000 to 2019** took **13.9 million square feet** of **positive net absorption** in Q3. **Older stock** still has a **vacancy problem**. **First-generation space** is **tight in some markets** and **overhanging in others**. --- ## How Strong Was Q3 Absorption Versus History? CBRE's own benchmarks leave little room to shrug. **104.6 million square feet** of Q3 net absorption sits well above the **10-year quarterly average of 82.9 million**. Completions in the quarter were **79.4 million square feet**, so **demand beat new supply** by about **25 million square feet**. **NorthPeak Commercial Advisors**, summarizing the same CBRE report (as seen in **GlobeSt**), said demand exceeded new supply for a **second consecutive quarter**. **Year-to-date absorption of 237.8 million square feet** is more than **double** last year's **97.7 million**. That is the number allocators will paste into **investment committee** decks. It is also why CBRE now expects **annual industrial investment volume to rise 15% year over year to $130.7 billion**, with **average loan-to-value** on permanent loans up to **60.5%** in Q3 from **57.5%** in Q2 and **59.6%** a year earlier. Debt is **following occupancy**, not leading it. **Connect CRE** placed CBRE in a pack with **JLL, Colliers, Cushman & Wakefield, and Plante Moran Realpoint**: most of the major shops described **stronger occupier demand** and **easing vacancy** in Q3. **Cushman** said **inland markets** accounted for roughly **80% of year-to-date absorption**. Port markets moved too, but the **interior** did the **heavy lifting**. That is the map behind DFW, Houston, and Atlanta topping CBRE's absorption table. --- ## Who Is Signing the Leases? CBRE said **Q3 leasing rose 27.1% to 276.8 million square feet**, and **year-to-date leasing rose 17.9% to 842.3 million**. **Leases of 700,000 square feet or more nearly doubled**. Activity in **smaller size ranges** rose by an **average of 9.7%**. This is not a **one-size rebound**. **NorthPeak's** read of the CBRE report named the **700,000-plus** crowd: **third-party logistics providers, manufacturers, and data center-related occupiers**. **Manufacturing** accounted for about **14% of total leasing** and **jumped 69% year over year** in that write-up. That occupier mix matches what [Prologis heard in its Harris Poll](https://www.yourcaio.co/news/prologis-harris-poll-decentralized-fulfillment-91-percent-november-2026): **networks, power, and inventory positioning**, not just **cheap bulk**. **Connect CRE** added that **Cushman & Wakefield** put **manufacturers at more than one-quarter of its year-to-date leasing volume**, up from just under one-quarter over the prior three years, and that **JLL** saw more tenants **expanding in place** because **large blocks are scarce**. The **big-box** bid is back. So is the **in-place expansion** bid. Relocations are harder when the **block you want is already taken**. That is why [CTP just agreed to pay about $500 million for Ares's SLP Vietnam platform](https://www.yourcaio.co/news/ctp-vietnam-slp-500-million-november-2026). **China Plus One** manufacturing and **express logistics** are leasing **Grade A** wherever the **factory and the parcel network** go. The U.S. tape is the **domestic half** of the same occupier. --- ## Why Is Vacancy Falling If the Pipeline Is Growing? **Vacancy 6.4%**, **-20 bps year over year**. **Availability 8.9%**, **-30 bps**. CBRE's explanation is blunt: **stronger demand and fewer new deliveries**, even as **some markets still digest speculative completions**. **Q3 completions of 79.4 million square feet** were **down slightly year over year** but **up sharply from 47.3 million in Q2**. **Year-to-date deliveries of 182.7 million square feet** were **17% below** the same point last year. That gap is how **absorption outran supply**. The next sentence is the warning. **Space under construction rose 9.3% year over year to 278 million square feet.** The pipeline is **turning back up** while **current deliveries** are still **below last year**. **Dallas-Fort Worth** holds **34.4 million square feet** of that pipeline. **Phoenix** holds **20.5 million**. **Houston** holds **18.4 million**. Those three metros will decide whether **Q3's 104.6 million** was a **clearing event** or a **head start** before the next wave. CBRE also split **vintages**. **Limited first-generation availability** and **increased renewal incentives** are supporting **existing facilities**. **Vacancies in older properties remain a challenge**. Yet **2000-2019 buildings** still posted **13.9 million square feet of positive net absorption**. The market is **not** treating every warehouse as equivalent. **Functional 15-to-25-year-old product** is participating. **Obsolete shells** are not. --- ## Which Markets Are Doing the Heavy Lifting? CBRE's YTD absorption leaders: | Market | YTD net absorption | Under construction | |--------|--------------------|--------------------| | Dallas-Fort Worth | 23.6 million SF | 34.4 million SF | | Houston | 18.1 million SF | 18.4 million SF | | Atlanta | 13.6 million SF | n/a in national top-3 pipeline | | Phoenix (pipeline) | n/a in national top-3 absorption | 20.5 million SF | **Growth rate** (YTD absorption divided by existing inventory) tells a different story. **El Paso (3.3%)** and **California's Central Valley (3.1%)** led. **Cincinnati, Houston, and Savannah** followed at **2.9%** each. CBRE tied that list to **logistics hubs** plus **manufacturing and cross-border trade**. **Laura Hyde**, managing director of investments at **Link Logistics**, said the quiet part about two of those demand markets when Link bought Oxford's Gateway assets in September: > Dallas-Fort Worth and Atlanta continue to see strong logistics demand as population growth and business investment support durable industrial fundamentals. That quote is why DFW can **lead absorption and lead the pipeline at the same time**. Builders are not **blind**. They are **chasing the same rooftops**. [Oxford recycling $400 million out of Atlanta and Dallas into Phoenix infill](https://www.yourcaio.co/news/oxford-sycamore-phoenix-460000-sf-industrial-november-2026) is the **capital-markets twin**: **sell where the business plan is done**, **buy where the team can still mark rents**, and ignore **Phoenix's 20.5 million-square-foot pipeline** only if you are buying **leased airport product**, not **spec**. Coastal contrast sits in [BKM and Kayne's $1.8 billion Southern California light industrial purchase](https://www.yourcaio.co/news/bkm-kayne-blackstone-1-8-billion-socal-industrial-november-2026). **Darla Longo**, CBRE vice chair, told Bisnow: > Capital's belief is that Southern California is on sale, and candidly, it is. **Inland absorption** and **coastal basis resets** can run in the **same quarter**. CBRE's national **6.4% vacancy** averages those two tapes. Do not underwrite **Los Angeles** as if it were **Alliance**. --- ## What Does Modest Rent Growth Mean for Owners? **$11.16 per square foot**, **+3.6% year over year**, is **positive** and **not a boom**. CBRE said **vacancy in some markets continued to limit pricing power**. **Connect CRE** noted **JLL** calling rent growth the **fastest since 2024**, **Cushman** seeing a **third straight quarter of acceleration**, **double-digit** gains in **Dallas-Fort Worth and several Southern and Midwestern markets**, and **softer** growth in **California, New Jersey, and Miami**. National asking rent is a **blend**. For owners, **+3.6%** plus **104.6 million square feet of absorption** is permission to **stop cutting as a default**. It is not permission to **forget concessions on older product**. CBRE's **renewal-incentive** comment is the tell: **first-generation scarcity** is keeping **existing buildings in play**, but landlords are **paying to keep them**. **Capital** is already treating the print as a **green light**. CBRE's **$130.7 billion** full-year investment forecast (**+15%**) and **60.5% LTV** sit next to [Oxford's matched $400 million recycle](https://www.yourcaio.co/news/oxford-sycamore-phoenix-460000-sf-industrial-november-2026) and [BKM-Kayne's $1.8 billion SoCal bid](https://www.yourcaio.co/news/bkm-kayne-blackstone-1-8-billion-socal-industrial-november-2026). Occupancy healed first. **Checks** are following. **Prologis** is still [building infill where power and rooftops align](https://www.yourcaio.co/news/prologis-glpi-hollywood-casino-joliet-3-8-million-sf-november-2026) rather than waiting for **national rent** to look like **2022**. --- ## The Numbers Worth Writing Down - **Q3 net absorption:** **104.6 million SF** (highest since **Q4 2022**) - **10-year quarterly average:** **82.9 million SF** - **YTD absorption:** **237.8 million SF** (vs **97.7 million** last year) - **Q3 leasing:** **276.8 million SF** (**+27.1%** YoY); YTD **842.3 million** (**+17.9%**) - **Vacancy / availability:** **6.4%** (**-20 bps** YoY) / **8.9%** (**-30 bps**) - **Asking rent:** **$11.16/SF** (**+3.6%** YoY) - **Q3 completions:** **79.4 million SF**; YTD **182.7 million** (**-17%**) - **Under construction:** **278 million SF** (**+9.3%** YoY) - **DFW YTD absorption / pipeline:** **23.6 million / 34.4 million SF** - **Investment volume forecast:** **$130.7 billion** (**+15%**) --- ## Demand Is Back. Selection Is the Job. **104.6 million square feet** is the **headline** that ends the **2025 hangover** narrative. **6.4% vacancy** and **$11.16 rents** are the **fine print**: the sector is **healing**, not **scarcity-pricing**. **278 million square feet under construction**, led by **DFW, Phoenix, and Houston**, is the **test** for 2027. Buy **functional infill** with **in-place income**, the way [Oxford just did in Tempe and Airport](https://www.yourcaio.co/news/oxford-sycamore-phoenix-460000-sf-industrial-november-2026). Buy **corrected coastal basis** if the **fund clock** is real, the way [BKM and Kayne did](https://www.yourcaio.co/news/bkm-kayne-blackstone-1-8-billion-socal-industrial-november-2026). Build where **occupiers and electrons** already exist, the way [Prologis is doing in Joliet](https://www.yourcaio.co/news/prologis-glpi-hollywood-casino-joliet-3-8-million-sf-november-2026). Do not **average** those three strategies into one **national cap rate**. CBRE just told you **demand returned**. The **pipeline** will tell you **whether it stays**. --- ## Sources - [Q3 2026 U.S. Industrial & Logistics Market Report](https://www.cbre.com/insights/figures/q3-2026-us-industrial-and-logistics-market-report), CBRE Research, October 23, 2026 - [Industrial Demand Hits Strongest Quarter Since 2022 as Large Leases Surge](https://northpeakcre.com/news/industrial-demand-hits-strongest-quarter-since-2022-as-large-leases-surge/), NorthPeak Commercial Advisors (as seen in GlobeSt) - [Industrial Demand Accelerates in Q3](https://www.mhlnews.com/warehousing/news/55415003/industrial-demand-accelerates-in-q3), MHL News, October 30, 2026 - [Q3 2026 Industrial Market: Demand Hits Highs as Vacancy Eases](https://www.connectcre.com/stories/q3-2026-industrial-market-demand-hits-highs-as-vacancy-eases/), Connect CRE - [Link Logistics Acquires Infill Industrial Portfolio in Dallas-Fort Worth and Atlanta](https://www.linklogistics.com/news-insights/company-news/link-logistics-acquires-infill-industrial-portfolio-in-dallas-fort-worth-and-atlanta/), Link Logistics, September 17, 2026 ## Frequently Asked Questions ### How much U.S. industrial space was absorbed in Q3 2026? CBRE's Q3 2026 U.S. Industrial & Logistics Market Report, published October 23, 2026, recorded 104.6 million square feet of net absorption, the highest quarterly total since Q4 2022. That beat the 10-year quarterly average of 82.9 million square feet and lifted year-to-date absorption to 237.8 million square feet. ### What was the U.S. industrial vacancy rate in Q3 2026? CBRE reported a 6.4% industrial vacancy rate, down 20 basis points year over year, with availability at 8.9%, down 30 basis points. The firm attributed the declines to stronger demand and fewer new deliveries, even as some markets still worked through speculative completions. ### How much did industrial rents rise in Q3 2026? Average net asking rent increased 3.6% year over year to $11.16 per square foot, CBRE said. Stronger leasing supported that gain, but vacancy in some markets continued to limit pricing power, which is why CBRE still labeled rent growth modest. ### Which U.S. industrial market led absorption in 2026? Dallas-Fort Worth led the nation with 23.6 million square feet of year-to-date net absorption, followed by Houston at 18.1 million and Atlanta at 13.6 million. DFW also held the largest construction pipeline at 34.4 million square feet, ahead of Phoenix at 20.5 million and Houston at 18.4 million. ### Is industrial supply still catching up with demand? Q3 demand outpaced deliveries: 104.6 million square feet of absorption versus 79.4 million square feet of completions. Year-to-date deliveries of 182.7 million square feet were 17% below last year, but the under-construction pipeline grew 9.3% year over year to 278 million square feet, so the next wave of supply is already visible. --- Cite as: David Cartolano, "CBRE: U.S. Industrial Absorbed 104.6 Million Square Feet in Q3 2026, Highest Since 2022," YourCAIO.co, 2026-11-10, https://www.yourcaio.co/news/cbre-q3-2026-industrial-104-6-million-sf-absorption-november-2026