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.
The economy might still be growing, but the manufacturing industry is not. It contracted again this month—this time with some of the worst indicators we’ve seen all year.
Michael Loccisano/Getty Images for Food Bank For New York City
Many businesses bulked up on warehouse space early in the pandemic. Now, storing extra inventory isn’t as important, and surplus warehouse space is being put to alternative uses.