PLD Developers Are Back to Building U.S. Warehouses -- WSJ Warehouse developers are breaking ground on new buildings, betting that a yearslo
PLD Developers Are Back to Building U.S. Warehouses -- WSJ Warehouse developers are breaking ground on new buildings, betting that a yearslong slump in industrial real-estate demand is over. More than 305M square feet of Warehouse space was under construction across the U.S. in the second quarter, up 18% from 2025 and the second consecutive quarter of annual growth, according to real-estate services firm Cushman & Wakefield. "Developers hit pause for two years and now they're hitting play again, but this time they're following demand, not chasing it," said Jason Tolliver, head of Logistics and industrial real estate at Cushman. The growing development pipeline is a significant shift from the slow construction activity of the past several years. Weak leasing activity and an overabundance of space combined to push the nationwide vacancy rate up to an 11-year high last year and led many developers to pare back construction plans. New construction slowed down in 2024 and 2025 as developers focused on completing projects already in the works and leasing empty space. Tenants that had snatched up excess space during the pandemic dialed back their leasing amid uncertain consumer demand..
PLD Developers Are Back to Building U.S.
Warehouses -- WSJ Warehouse developers are breaking ground on new buildings, betting that a yearslong slump in industrial real-estate demand is over.
More than 305M square feet of Warehouse space was under construction across the U.S. in the second quarter, up 18% from 2025 and the second consecutive quarter of annual growth, according to real-estate services firm Cushman & Wakefield. "Developers hit pause for two years and now they're hitting play again, but this time they're following demand, not chasing it," said Jason Tolliver, head of Logistics and industrial real estate at Cushman.
The growing development pipeline is a significant shift from the slow construction activity of the past several years.
Weak leasing activity and an overabundance of space combined to push the nationwide vacancy rate up to an 11-year high last year and led many developers to pare back construction plans.
New construction slowed down in 2024 and 2025 as developers focused on completing projects already in the works and leasing empty space.
Tenants that had snatched up excess space during the pandemic dialed back their leasing amid uncertain consumer demand.
Demand for new space is now bouncing back.
Companies leased more space in the second quarter than in any period since mid-2022, according to Cushman, giving developers confidence to start projects.