Industrial Real Estate Market Report 2026

The industrial real estate market size has grown strongly in recent years. It will grow from $279.43 billion in 2025 to $294.12 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to increasing industrial expansion driven by e-commerce, early investment in large-scale warehousing, growth in manufacturing modernization, rising demand for logistics infrastructure, expansion of industrial business parks.

The industrial real estate market size is expected to see strong growth in the next few years. It will grow to $359.68 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to growing integration of smart industrial systems, increased demand for energy-efficient warehouses, expansion of automated logistics hubs, rising investment in regional manufacturing, development of sustainable industrial buildings. Major trends in the forecast period include growing adoption of automated warehousing designs, expansion of high-capacity distribution infrastructure, increased demand for flexible industrial space, rising use of energy-efficient building materials, growth in smart industrial park developments.

The rise in construction activity is expected to drive the growth of the industrial real estate market in the coming years. Construction activities involve the physical development of buildings, infrastructure, and other structural projects. The increase in construction and real estate activities is driven by rapid urbanization, infrastructure expansion, and a growing emphasis on efficiency and precision in building processes. Industrial real estate supports construction by providing essential infrastructure, facilities, and logistical resources that streamline operations, improve efficiency, and facilitate the construction process from planning through completion. For example, in July 2023, according to the Australian Bureau of Statistics, an Australian government agency, there were 240,813 dwellings under construction in the March quarter of 2023, up from 240,065 in 2022. Therefore, the rise in construction activity is contributing to the growth of the industrial real estate market.

Key players in the industrial real estate market are investing in real estate projects to expand their property portfolios, improve logistics capabilities, and meet the growing demand for modern industrial spaces. These investments reflect a strategic focus on capitalizing on the rapidly growing industrial real estate sector through large-scale, sustainable developments. For instance, in December 2023, Panattoni Development Company, a US-based industrial real estate firm, invested over USD 101.4 million (€100 million) in India to significantly boost its presence there. The company plans to invest $100 million annually in India for several years to develop industrial warehouses in major markets such as Delhi NCR, Mumbai, Bengaluru, Chennai, and Pune.

In June 2023, Prologis, a U.S.-based provider of logistics real estate investment trust (REIT) services, acquired nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for $3.1 billion. Through this acquisition, Prologis aimed to strengthen its presence in key U.S. markets, expand its customer base by adding 77 new customers and deepening relationships with 50 existing clients, and enhance its Strategic Essentials platform by scaling its portfolio with high-quality warehouse assets. Blackstone is a U.S.-based real estate investor that manages opportunistic real estate funds offering high-quality warehouse and industrial properties across multiple markets in North America and globally.

Major companies operating in the industrial real estate market are CBRE Group Inc., Jones Lang LaSalle Incorporated, Cushman & Wakefield, Prologis Inc., Colliers International, Sealy & Company LLC, Exeter Property Group, Duke Realty Corporation, Hillwood Development Company, Stag Industrial Inc., Rexford Industrial Realty Inc., First Industrial Realty Trust, EastGroup Properties Inc., Trammell Crow Company, Rockefeller Group, Terreno Realty Corporation, Panattoni Development Company, Dermody Properties LLC, Bridge Development Partners LLC, Conor Commercial Real Estate, Avison Young, CenterPoint Properties, Lincoln Property Company, Clarion Partners.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the industrial real estate market by increasing costs for steel, aluminum, mechanical systems, and imported construction materials used in warehouses, logistics centers, and manufacturing facilities. North America and Europe face higher development and renovation costs due to reliance on foreign metal inputs. Yet tariffs stimulate regional material production and support domestic industrial infrastructure expansion.

The industrial real estate market research report is one of a series of new reports that provides industrial real estate market statistics, including industrial real estate industry global market size, regional shares, competitors with an industrial real estate market share, detailed industrial real estate market segments, market trends, and opportunities, and any further data you may need to thrive in the industrial real estate industry. This industrial real estate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Industrial real estate pertains refers to commercial properties designated for industrial use, such as manufacturing, warehousing, distribution, research and development (R&D), and logistics. These properties are specifically designed and equipped to support various industrial functions and generally include features such as high ceilings, expansive floor areas, heavy-duty flooring, loading docks, and access to transportation infrastructure.

The primary types of industrial real estate include industrial, retail, office, and warehousing properties. Retail real estate covers properties used for commercial purposes, such as shopping centers, stores, and other retail venues. These properties come in various sizes including small, medium, and large, and serve different functions including manufacturing, distribution, logistics, research and development, data centers, and more.North America was the largest region in the industrial real estate market in 2025. The regions covered in the industrial real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The industrial real estate market includes revenues earned by entities through the leasing, development, management, and sale of industrial properties such as warehouses, distribution centers, manufacturing facilities, and industrial parks. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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