The report argues that U.S. industrial real estate may be approaching the early stages of a cyclical recovery.
- Market rents have fallen below replacement-cost rents, while construction costs remain elevated due to labor, materials and financing pressures.
- New supply has dropped sharply, which should gradually tighten the market and support a recovery in rents and asset values.
- Buildings with stronger power infrastructure and automation-ready features may benefit disproportionately as tenant requirements evolve.
If supply remains constrained while demand stabilizes, the sector could be entering a more favorable phase for rental growth and value recovery.
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![Oil refinery Finland. Credits: Carlos "Grury" Santos / Unsplash](https://images.investmentofficer.com/cdn/ff/z7gfGi--hLqn6M3c-mcg3sluahSkctIkN_0H1WYFlfo/1774357697/public/styles/thumbnail/public/2026-03/carlos-grury-santos-Me4Vgoi9Gd8-unsplash.jpg?itok=Ojyen-Qi "Oil refinery Finland. Credits: Carlos "Grury" Santos / Unsplash")
