Older industrial buildings are falling out of favor as businesses double down on amenities, functionality, and efficiency. According to a new report from CBRE, tenants in properties developed between 2000 and 2022 are increasingly moving into newer facilities, preferring features like higher ceilings, more power, and enhanced distribution amenities.

This trend in industrial leasing is evident in the net absorption figures for properties built in the last three years compared to those delivered in the 22 years before 2022. On one hand, the absorption of industrial space built between 2023 and 2024 has reached 395 million square feet since Q1 2023, while properties constructed in the previous 22 years have experienced 17 million square feet of negative net absorption.

The starkest effect of this trend is reflected in the leasing statistics for industrial spaces older than 25 years. That subgroup, according to CBRE, has seen negative net absorption reach 139 million square feet during the same period.