Which U.S. city has the highest industrial lease rates?

Los Angeles commands the highest industrial rents among major U.S. markets at $16.85/sqft/yr in Q1 2026. The South Bay submarket reaches $19.50/sqft/yr due to severe land constraints and port proximity. By contrast, Dallas-Fort Worth offers rates around $7.15/sqft/yr with far larger available inventory.

What is the industrial vacancy rate in the U.S. in 2026?

The national industrial vacancy rate stands at 5.8% as of Q1 2026. This represents a slight increase from the historic trough of 3.1% reached in mid-2022, driven by a record construction pipeline delivering new supply. Los Angeles remains the tightest major market at 3.8% vacancy.

How have U.S. industrial lease rates changed over the past two years?

U.S. industrial asking rents have risen approximately 18% over the past two years (Q1 2024 to Q1 2026). Growth peaked at 6.4% annually in 2023 before moderating to 4.1% in the latest quarter as new supply deliveries began to balance absorption in several markets.

Which U.S. industrial submarket has the lowest vacancy?

The South Bay submarket of Los Angeles recorded the lowest vacancy among major U.S. industrial submarkets at 2.2% in Q1 2026. Infill Southern California markets consistently outperform national averages due to land scarcity, port access, and deep population density driving last-mile demand.

Updated Q1 2026

U.S. Industrial Lease Rates: Q1 2026 2026

City-level and submarket breakdown of industrial asking rents across United States. Updated quarterly from 4 institutional research sources.

USD 9.82

↑ 4.1% YoY

National avg ($/sqft/yr)

+4.1%

→ vs prior quarter

Year-over-year change

5.8%

National vacancy rate

20.2B sqft

Total industrial inventory

Key findings

U.S. industrial asking rents averaged USD 9.82 per sqft in Q1 2026 2026, reflecting 4.1% growth year-over-year. Los Angeles recorded the lowest rate among tracked markets at USD 16.85/sqft, while Los Angeles led at USD 16.85/sqft.

Vacancy remains tight at 5.8% nationally. Los Angeles is the tightest market at 3.8% vacancy, signalling continued upward rent pressure in that region.

Lease rates by city ($/sqft/yr)

Los Angeles CA

↑+4.0%USD 16.85

Houston TX

↑+4.1%USD 8.35

Chicago IL

↑+4.6%USD 7.45

Atlanta GA

↑+4.7%USD 7.28

Dallas-Fort Worth TX

↑+5.5%USD 7.15

All cities at a glance

United States industrial lease rates by city
Market	Rate (USD)	Prior Qtr	YoY	Vacancy
Los AngelesCA	16.85	16.20	+4.0%	3.8%
HoustonTX	8.35	8.02	+4.1%	6.8%
ChicagoIL	7.45	7.12	+4.6%	5.9%
AtlantaGA	7.28	6.95	+4.7%	6.4%
Dallas-Fort WorthTX	7.15	6.78	+5.5%	7.2%

Dallas-Fort Worth industrial lease rates

Dallas-Fort Worth (TX) averages USD 7.15/sqft, up 5.5% YoY with 7.2% vacancy. Trailing 12-month net absorption: 18.4M sqft.

Dallas-Fort Worth submarket lease rates
Submarket	Rate (USD)	Prior Qtr	YoY	Vacancy
DFW Airport/Freeport	8.20	7.85	+4.5%	5.5%
Alliance/North Fort Worth	6.85	6.50	+5.4%	8.5%
Great Southwest/Arlington	6.45	6.12	+5.4%	6.8%

8-quarter trend:USD 6.22 → USD 7.15

Chicago industrial lease rates

Chicago (IL) averages USD 7.45/sqft, up 4.6% YoY with 5.9% vacancy. Trailing 12-month net absorption: 12.8M sqft.

Chicago submarket lease rates
Submarket	Rate (USD)	Prior Qtr	YoY	Vacancy
O'Hare	9.10	8.72	+4.4%	4.1%
I-55 Corridor	7.20	6.88	+4.7%	5.5%
I-80/Joliet Corridor	6.75	6.42	+5.1%	7.2%

8-quarter trend:USD 6.52 → USD 7.45

Atlanta industrial lease rates

Atlanta (GA) averages USD 7.28/sqft, up 4.7% YoY with 6.4% vacancy. Trailing 12-month net absorption: 14.2M sqft.

Atlanta submarket lease rates
Submarket	Rate (USD)	Prior Qtr	YoY	Vacancy
Northeast Atlanta/I-85 North	7.85	7.48	+4.9%	5.2%
West Atlanta/I-20 West	7.10	6.78	+4.7%	6.1%
South Atlanta/Airport	6.55	6.22	+5.3%	7.8%

8-quarter trend:USD 6.35 → USD 7.28

Houston industrial lease rates

Houston (TX) averages USD 8.35/sqft, up 4.1% YoY with 6.8% vacancy. Trailing 12-month net absorption: 10.5M sqft.

Houston submarket lease rates
Submarket	Rate (USD)	Prior Qtr	YoY	Vacancy
Southeast/Port Area	8.75	8.40	+4.2%	5.5%
Southwest/Sugar Land	8.50	8.15	+4.3%	6.2%
Northwest/Highway 290	7.90	7.58	+4.2%	7.5%

8-quarter trend:USD 7.42 → USD 8.35

Los Angeles industrial lease rates

Los Angeles (CA) averages USD 16.85/sqft, up 4% YoY with 3.8% vacancy. Trailing 12-month net absorption: 6.2M sqft.

Los Angeles submarket lease rates
Submarket	Rate (USD)	Prior Qtr	YoY	Vacancy
South Bay	19.50	18.78	+3.8%	2.2%
Mid-Counties	15.40	14.82	+3.9%	3.5%
Inland Empire West	11.20	10.75	+4.2%	5.8%

8-quarter trend:USD 15.10 → USD 16.85

Methodology

Rates represent average asking rents for Class A and B industrial properties with over 20,000 sqft of leasable area. All figures are quoted as triple-net (NNN) rates in USD per square foot per annum.

City-level rates are weighted averages across surveyed submarkets, drawn from quarterly reports published by JLL, CBRE, and Cushman & Wakefield. Where sources differ, we report the midpoint of the available range.

Year-over-year change is calculated against the same quarter of the prior year. Historical trend data covers the most recent 8 quarters (Q2 2024 through Q1 2026).

Vacancy rates include available sublease space. Net absorption reflects the change in occupied industrial space over the trailing 12 months.

Sources

JLL U.S. Industrial Outlook Q1 2026 Link Accessed 2026-05-20.
CBRE U.S. Industrial & Logistics Figures Q1 2026 Link Accessed 2026-05-20.
Cushman & Wakefield U.S. Industrial MarketBeat Q1 2026 Link Accessed 2026-05-20.
CommercialCafe National Industrial Report 2026 Link Accessed 2026-05-20.

Cite this report

SCAYLED (2026). U.S. Industrial Lease Rates: Q1 2026 2026. Retrieved from https://scayled.com/data/industrial-lease-rates/us

Free to quote with attribution. Creative Commons CC BY 4.0.

Related data

Q1 2026

Australia Lease Rates

AUD 148.00/sqm avg, 5.2% YoY

Q1 2026

New Zealand Lease Rates

NZD 155.00/sqm avg, 4.8% YoY

Data

Cross-Market Comparison

US vs AU vs NZ industrial lease rates ranked side by side

Report

Signal Snapshot

903 occupier movement signals across AU and NZ

Frequently asked questions

The national average asking rent for U.S. industrial space reached $9.82 per square foot per year (net) in Q1 2026, up 4.1% year-over-year. This reflects continued demand from e-commerce fulfilment, third-party logistics, and cold-chain expansion, though the pace of rent growth has moderated from the 6%+ seen in 2023 and 2024.

See who operates in these buildings

Scayled scans every occupier around a commercial listing. Verified decision-makers, drafted outreach, built-in CRM.

Try free with 50 credits