The Southeast United States has successfully attracted industrial occupiers and investors, driven by ongoing population growth, low costs, strategic infrastructure access, and a favorable business operation environment. Industrial vacancy rates remain below pre-pandemic averages, and rental rates continue to rise in key markets, according to Cushman & Wakefield’s Southeast regional industrial labor report for the first quarter.

The population of the Southeast’s 17 major metropolitan areas has grown to 44.9 million residents, which is expected to increase by 4% over the next five years, nearly double the national growth rate. This population growth has helped fuel an industrial boom, including a surge in e-commerce, third-party logistics, and manufacturing companies moving into the region.

Cushman & Wakefield said nearly 545.1 million square feet of industrial space has been absorbed across key Southeast industrial markets since the start of 2019. Demand normalized in 2024 with 50 million square feet of net occupancy gains. Industrial developers built nearly 695 million square feet of new product in response to the region’s population growth and consumer demand. However, construction starts have now eased after new industrial supply peaked in 2023, which should balance the market throughout the coming year, the report said.