Industrial net absorption for the second half of 2024 is expected to reach approximately 114 million square feet, up from 67.1 million square feet absorbed during the first half of the year.

First-quarter absorption was down substantially from its historic peak in 2021 when it totaled 749.3 million square feet for the year, according to CoStar data. It also lagged absorption recorded in the same period last year of 172.2 million square feet.

Absorption in 2025 is expected to be around 249 million square feet, and the figure in the first half of 2026 could be about 154 million square feet, according to the NAIOP Industrial Space Demand Forecast. The forecast assumes a soft landing of interest rates. If a hard landing materializes, net absorption could significantly underperform the forecast, said NAIOP.