Link Logistics Highlights Sustained Industrial Real Estate Demand in Q2 2026
The key drivers underpinning industrial real estate demand—including AI-related infrastructure development, e-commerce and manufacturing investment—remained firmly in place during the second quarter of 2026, according to Link Logistics chief executive officer Luke J. Petherbridge.
AI Infrastructure Drives Need for Warehouse Space
In a recent interview on Bloomberg Television, Petherbridge said that as investment in digital infrastructure accelerates, suppliers, contractors and service providers often require nearby warehouse space to support construction, operations and maintenance activities, creating additional demand for industrial real estate.
“This transformational investment happening across the country is flowing into not just the data centers but into all of the component parts—cooling towers, generators, manufacturing, servers and racks,” Petherbridge said.
Approximately 15 percent of Link Logistics’ new leasing over the past year has come from data center or data-center-adjacent demand. Additionally, Link Logistics estimates that every gigawatt of data center construction creates 2 million square feet of industrial real estate demand.
E-Commerce Continues to Fuel Industrial Real Estate Growth
As fast delivery becomes increasingly commonplace to meet increased consumer expectations, businesses continue to seek strategically located infill industrial properties that enable them to store inventory closer to customers and move goods more efficiently through their supply chains.
“E-commerce is an underappreciated growth engine,” Petherbridge told Bloomberg. “In the next decade, 50 percent of the U.S. workforce will have grown up with Amazon Prime with 24-hour delivery expectations.”
Manufacturing Investment Supports Long-Term Leasing Activity
Manufacturing investment, driven by continued company onshoring and reshoring activities, remains another important factor supporting industrial real estate, Petherbridge said. As companies continue to strengthen supply chains and expand production capabilities across North America, demand for warehouse and distribution facilities that support those operations continues to grow.
New Industrial Real Estate Development Moderates
Market fundamentals continue to move in a favorable direction. New industrial development activity has moderated, while demand for industrial space remains supported by the enduring forces noted above, contributing to a more balanced supply-demand environment across the sector.
“There is reasonable availability in the market, but that is coming down,” Petherbridge said. “New supply is off 50 percent from the high.”
