Midwest and East Coast markets dominate the list of top markets for industrial rent growth as of the second quarter of 2025, but the state of Florida is also well represented.
The amount of available industrial space across Long Island’s Nassau and Suffolk counties totals 13.8 million square feet heading into the third quarter of 2025. That’s approximately 500,000 square feet less than the level at the end of March and is the first quarter-over-quarter decline since the end of 2023.
According to the latest preliminary data for May released by the U.S. Bureau of Labor Statistics, Houston employment grew by just 0.9% annually, which is less than half of the 2010 to 2019 annual average of 2%.
According to the latest U.S. Bureau of Labor Statistics data, Lincoln, the state capital of Nebraska, added 2,000 jobs in May, lifting total nonfarm payrolls to 201,200, the highest reading on record.
While Milwaukee’s labor market registered 5,400 jobs gained from April to May, total nonfarm payrolls remain 1,000 positions below year-earlier levels and 1,100 jobs short of their February 2020 benchmark, according to the most recent data from the U.S. Bureau of Labor Statistics.
Twin Cities nonfarm payrolls increased by 32,300 positions from April to May, driving employment growth 15,600 jobs higher than a year earlier. While the annual growth rate of 0.8% outpaces Midwest peers, such as Chicago (0.5%) and Milwaukee (negative 0.1%), it trails the U.S. average of 1.1% and the region's 2015-19 average of 1.5%, confirming a late-cycle deceleration.
Seattle industrial demand has contracted over the past couple of years, and occupancy has remained relatively flat. After a wave of demand early in the decade, leasing volumes have returned to pre-pandemic levels. Meanwhile, speculative construction and an uptick in sublet availability have put a significant amount of space on the market.
Denver’s multifamily construction wave continues to pummel the market. Vacancies remain near record highs, dragging down rent growth as landlords face increased competition for renters.
Though the Phoenix labor market notched modestly positive growth over the past year, hiring in traditionally office-using sectors remained in negative territory.
Falling tenant demand for commercial space drove down property values in May, setting up the second quarter to be an extension of the first as lower tenancy holds back prices even as buyers return to the market.
While Houston’s current multifamily vacancy rate of 11.3% remains near a 20-year high, it now sits below the fourth quarter of 2024 peak of 11.7%, with further downward momentum anticipated. For context, Houston's vacancy rate has averaged 9.9% over the past 10 years.
According to the latest data from the U.S. Bureau of Labor Statistics, the Omaha, Nebraska, metropolitan area added 5,700 jobs in May, bringing non-farm payrolls to 521,300. The region has expanded by 4,800 positions, or 0.9%, over the past year, in line with the 2015-19 average, but slightly below the national average annual growth rate of 1.1%.
The unemployment rate dipped to 4.3% across the Sacramento region in May, according to the latest jobs report released by the federal Bureau of Labor Statistics. That was down from a revised 4.5% in April, although it was up 40 basis points compared to last May. Across the regional counties, the unemployment rate was 4.4% in Sacramento, 4.9% in Yolo, 3.7% in Placer and 4.4% in El Dorado. The statewide unemployment rate for California was 4.9% in May.
Leander, Texas, a city of over 87,500 people in the northwest corner of the Austin metropolitan area, was the region’s fastest-growing city between July 2023 and July 2024. Its high growth has been propelled by its desirability among families seeking lower-priced homes and access to quality schools.