Wedoany.com Report on Jan 31st, Despite ongoing macroeconomic pressures, a latest report from JLL indicates that U.S. industrial leasing activity remained robust by the end of 2025. The report notes that leasing momentum in the second half of the year drove annual leasing volume to 533.2 million square feet, with third-party logistics (3PL) serving as the primary driver for the fourth consecutive quarter, accounting for 15.8% of total leasing activity.
Elizabeth Holder, Senior Analyst of Industrial Research at JLL, stated that the growth in leasing activity during the second half of 2025 stemmed from pent-up demand, as tenants had previously adopted a wait-and-see approach toward new leasing decisions. "Ultimately, many could no longer postpone these decisions, which contributed to the upward trend," she said. "3PL users continued to dominate leasing activity, accounting for 12.7% in the fourth quarter and 15.8% for the full year. As 3PLs expand their service offerings, they will remain key tenants as companies continue to outsource logistics operations to focus on core competencies."
Report data shows that the building materials and construction accessories industry accounted for 10.7% of annual leasing volume, while logistics and distribution users accounted for 10.1%. Leasing in building materials and construction accessories grew by 66.8% over the past five years, while logistics and distribution tenants saw the largest quarter-over-quarter increase, with leasing activity rising by 53.8%.
Net absorption in the fourth quarter reached 58.7 million square feet, marking the highest quarterly figure since the second quarter of 2023. Total net absorption for 2025 reached 161.1 million square feet, representing an 18% annual increase. This growth was primarily driven by build-to-suit occupancy and owner-occupier sales, with companies actively leasing customized facilities or those in strategic locations.
Despite strong leasing activity and net absorption, the development pipeline further moderated, reaching 259 million square feet in 2025—the lowest annual figure since 2019. The total volume of industrial buildings under construction was 253.7 million square feet, showing a slight sequential increase from the third to the fourth quarter.
Holder noted that development activity shows signs of a cautious recovery, but the rebound may be limited and market-specific. "Speculative construction is expected to selectively resume in markets with strong fundamentals and limited available inventory, while certain markets facing absorption challenges from existing product deliveries will restrain near-term speculative development," she said. "Build-to-suit and owner-occupier projects are expected to maintain a significant presence in the development pipeline."
The report also mentioned that supply constraints may emerge for mega-sized buildings due to growing demand in this segment and a lack of new construction. Currently, 11 such buildings are under construction, primarily in Pennsylvania and Texas. In the second half of 2025, 10 new speculative leases exceeding 1 million square feet were signed, indicating steady demand for this size segment, with some of this leasing activity gradually being driven by third-party logistics firms.
