CSGP · News · 20260806N

Market Demand Trends

COSTAR GROUP, INC. · 2026-08-06 · Importance 22 · Surprise 32

CoStar expects U.S. industrial vacancy to rise slightly through early 2027 before declining as construction slows and demand improves, with industrial demand projected to outpace new supply by late 2027. Average annual industrial rent growth for 2026-2027 was revised upward to 1.9%, although a near-term supply overhang is expected to limit pricing. Separately, U.S. apartment vacancy declined to 8.2% in the second quarter of 2026 as absorption exceeded deliveries by more than 45,000 units, while office vacancy fell below 14% and is expected to decline gradually after remaining steady through 2026.

Key facts

• CoStar said absorption exceeded new supply by over 45,000 units in Q2 2026 (Apartments.com/CoStar multifamily update). source