The first quarter of 2025 brought a new president and new policies. Despite the uncertain environment, the industrial real estate sector performed fairly well during this time.
Nationwide, the industrial sector posted its best quarter since Q2 2024, with 123.3 million square feet of leasing activity. Mid-sized facilities were the most popular for leasing activity, accounting for 27.3% of total leasing volume.
Increasing lease activity caused net absorption to increase 43.4% from Q1 2024, as 40 million square feet of industrial space was absorbed into the national market.
Conversely, the development pipeline reached its lowest point since 2015, with 79.6 million square feet becoming available in Q1, with an additional 219.5 million square feet due to be delivered in 2025.
In Tyler, the construction pipeline has also slowed, with only 13,600 square feet under construction, 780,000 square feet available, and 43,000 square feet absorbed into the market in Q1. And while Tyler’s industrial vacancy rate has increased slightly to 5.1%, that’s lower than the national average of 7.3%.
Sources: CoStar, Cushman & WakefieldIf your business is in need of industrial space, or you have an industrial property to sell, let me know. My team and I can help with all sectors of commercial real estate in East Texas.
