Negative net absorption for industrial assets has been more prominent in many of the port markets as imports reverted to pre-pandemic levels and inventory strategies shifted away from a "just in case" approach, according to Cushman & Wakefield, which notes that there have been occupiers within port-proximate markets that have placed excess space back on the market.

"Despite expectations that West Coast ports would regain market share from East and Gulf ports due to the ongoing Red Sea crisis, Panama Canal drought, and the upcoming East Coast port negotiations, this shift has yet to materialize consistently," said Jason Price, Senior Director, Americas Head of Logistics & Industrial Research. "Having learned from previous supply chain challenges, shippers continue to diversify ports of entry, resulting in modest growth at most major ports nationwide."

This report dovetails a recent CoStar Group analysis that found record numbers of large industrial properties near major US seaports. In the current market, large tenants seeking industrial space near the busiest US seaports have more options than at any point in at least 20 years, it said.