Demand to lease industrial spaces — meaning warehouses that store everything from car parts to construction materials — shrank by 11.3 million square feet in the second quarter of 2025.

Storage prices are soaring, especially in locations near big ports and major metro areas.

The U.S. may need an additional 330 million square feet of distribution space by 2025 to handle the expected expansion of online sales.

The ports of Los Angeles and Long Beach handled record amounts of imports in August. Meanwhile, warehouse rents increased by 10% from this time last year.