Which industrial market has the lowest vacancy rate?

Tauranga, New Zealand has the lowest industrial vacancy at 2.0% as of Q1 2026, followed by Sydney, Australia at 2.1% and Auckland, New Zealand at 2.2%. Among U.S. markets, Los Angeles is tightest at 3.8%. The Asia-Pacific markets consistently outperform the U.S. on vacancy due to tighter land supply and less speculative development.

Is industrial vacancy rising or falling globally?

The answer depends on the market. U.S. industrial vacancy is rising modestly (up 0.4pts YoY) as new construction deliveries exceed absorption. Australian and New Zealand markets are still tightening, with 9 of 10 tracked cities showing declining vacancy. The divergence reflects different construction pipeline volumes and planning regimes.

What vacancy rate signals opportunity for industrial brokers?

Markets with 5-8% vacancy and rising represent the best opportunity for tenant-rep brokers, as tenants have more options and are more likely to relocate. Markets below 3% vacancy favor lessor-rep brokers, as landlords hold pricing power and tenants have limited alternatives. The U.S. Sun Belt and Dallas-Fort Worth are currently in the tenant-favorable zone.

Updated Q1 2026

Industrial Vacancy Rates by City: Q1 2026 Tracker

5.8%

↑ +0.4pts YoY

U.S. national vacancy

3.2%

↓ -0.2pts YoY

AU national vacancy

2.8%

↓ -0.1pts YoY

NZ national vacancy

Auckland (2.2%)

Tightest market

Key findings

Asia-Pacific industrial markets (AU + NZ) continue to tighten, with 9 of 10 tracked markets showing declining vacancy. Auckland (2.2%) and Sydney (2.1%) are the tightest major markets globally in this comparison.

U.S. vacancy has risen modestly to 5.8% nationally as record construction deliveries outpace absorption. Dallas-Fort Worth saw the sharpest increase (+0.8pts YoY) as 18.4M sqft of new supply hit the market.

The AU/NZ vacancy gap against the U.S. has widened to 2.8 percentage points (3.0% AU/NZ avg vs 5.8% US), reflecting tighter planning restrictions and lower speculative construction in Australasian markets.

Vacancy rates ranked (tightest first)

Tauranga NZ

↓-0.2pts2%

Sydney AU

↓-0.3pts2.1%

Auckland NZ

↓-0.2pts2.2%

Hamilton NZ

↓-0.3pts2.5%

Wellington NZ

↓-0.1pts3%

Brisbane AU

↓-0.2pts3%

Melbourne AU

↑+0.2pts3.5%

Christchurch NZ

↓-0.3pts3.5%

Los Angeles US

↑+0.3pts3.8%

Perth AU

↓-0.2pts3.8%

Adelaide AU

↓-0.1pts4.2%

Chicago US

↑+0.5pts5.9%

Atlanta US

↑+0.6pts6.4%

Houston US

↑+0.5pts6.8%

Dallas-Fort Worth US

↑+0.8pts7.2%

All markets

Industrial vacancy rates by city
Market	Vacancy	Prior Qtr	YoY	Trend
TaurangaNZ	2%	2.1%	-0.2pts	tightening
SydneyAU	2.1%	2.2%	-0.3pts	tightening
AucklandNZ	2.2%	2.3%	-0.2pts	tightening
HamiltonNZ	2.5%	2.6%	-0.3pts	tightening
WellingtonNZ	3%	3.1%	-0.1pts	tightening
BrisbaneAU	3%	3.1%	-0.2pts	tightening
MelbourneAU	3.5%	3.4%	+0.2pts	loosening
ChristchurchNZ	3.5%	3.6%	-0.3pts	tightening
Los AngelesUS	3.8%	3.6%	+0.3pts	loosening
PerthAU	3.8%	3.9%	-0.2pts	tightening
AdelaideAU	4.2%	4.3%	-0.1pts	tightening
ChicagoUS	5.9%	5.7%	+0.5pts	loosening
AtlantaUS	6.4%	6.1%	+0.6pts	loosening
HoustonUS	6.8%	6.5%	+0.5pts	loosening
Dallas-Fort WorthUS	7.2%	6.9%	+0.8pts	loosening

Methodology

Vacancy rates represent total available industrial space (direct + sublease) as a percentage of total inventory, sourced from JLL, CBRE, and Colliers quarterly reports.

Year-over-year change is calculated against Q1 2025. Direction (tightening/loosening/stable) reflects the trend over the prior 4 quarters, not just the most recent change.

Markets are ranked by current vacancy rate. U.S., Australian, and New Zealand markets are compared on the same basis, though underlying market sizes differ significantly.

Sources

JLL, Industrial Outlook Q1 2026 (US, AU) Accessed 2026-05-20.
CBRE, Industrial & Logistics MarketView Q1 2026 (US, AU, NZ) Accessed 2026-05-20.
Colliers, Industrial Market Report Q1 2026 (NZ, AU) Accessed 2026-05-20.

Cite this report

SCAYLED (2026). Industrial Vacancy Rates by City: Q1 2026 Tracker. Retrieved from https://scayled.com/data/industrial-vacancy-rates-2026

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

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Frequently asked questions

The U.S. national industrial vacancy rate is 5.8% as of Q1 2026, up from 5.4% a year ago. This represents a continued normalization from the historic trough of 3.1% in mid-2022. The increase is driven by elevated construction completions rather than weakening demand; net absorption remains positive in most markets.

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