What Do Warehouse Occupiers Want in 2026?  

This article is based on a conversation between Brandon Page, Link Logistics’ executive vice president and head of Leasing and Customer Solutions; Stephanie Rodriguez, Colliers’ national director of Industrial Services for the U.S. and executive managing director for Florida; and host Kevin Lawton on a recent episode of “The New Warehouse” podcast. 

The U.S. industrial real estate market has moved past the pandemic-era leasing frenzy and into a more balanced phase where vacancy rates have stabilized, demand remains durable and the conditions for rent growth are beginning to reemerge. Beneath the surface, significant shifts are underway in what occupiers need from their warehouse facilities and how they make real estate decisions. 

Here's a closer look at the dynamics shaping the industrial real estate landscape in 2026, from market fundamentals and power requirements to last-mile strategy, data center demand and the role of AI in real estate decision-making. 

How Healthy Is the Industrial Real Estate Market in 2026? 

National industrial vacancy rates are averaging in the 7 to 8% range—a level that reflects a functional market, Page said on the podcast. Customers have options, landlords have activity on their vacancies and retention is tracking near historical averages. 

"It's a healthy market that is balanced," Page said. 

But that balance, Page added, doesn't mean uniform conditions. The Sun Belt—particularly Dallas, Atlanta and Phoenix—is seeing outsized demand fueled by onshoring, nearshoring and population growth. Meanwhile, leasing activity has varied significantly by size. Spaces under 100,000 square feet have remained resilient, while bulk leasing above 250,000 square feet slowed through much of 2025. 

The tide appears to be turning. Link Logistics' fourth quarter of 2025 was among the strongest the firm has seen since 2021, a sign that industrial users who had been on the sidelines are beginning to move forward with decisions. 

Why Did Large Warehouse Leasing Slow Down? 

Several factors converged to stall bulk leasing activity in 2025. Uncertainty across the broader economic environment caused many occupiers to pause on large commitments, particularly deals involving 1 million square feet or more of warehouse space, which can require 12 months or longer to stand up and represent significant capital expenditures. 

At the same time, C-suite leaders have become more deeply involved in real estate decisions, Page said, adding layers of internal approval that have lengthened timelines. Decision-making has become more thorough and data-driven, with companies carefully evaluating risk before committing to large warehouse leases. 

Page views the Q4 rebound as a catalyst heading into 2026. "The customers have to make decisions. Businesses have to make decisions. They can no longer pause," he said, noting that excess capacity within occupier networks—sometimes referred to as "shadow space"—has been shrinking steadily, pushing occupiers back into the market. 

What Is Shadow Space in Industrial Real Estate? 

Shadow space refers to underutilized capacity within a tenant's existing warehouse network. It's not a formal vacancy metric, but it has a meaningful impact on leasing demand. During the pandemic, many companies leased aggressively, often securing more space than they immediately needed with the intention of figuring out utilization later. Several years removed from that leasing surge, those excess buffers have been steadily absorbed, intensifying pressure to secure new space. 

This dynamic is especially relevant for 3PLs, which need available capacity to onboard new clients and grow existing accounts. As their internal slack disappears, they're among the most active occupier segments re-entering the market. 

Why Is Power Availability a Top Priority for Warehouse Occupiers? 

One of the most notable shifts in tenant requirements is the rapid rise of power availability as a facility priority. Page said it now ranks alongside transportation access and labor availability—and in some cases surpasses them as a priority. This aligns with broader trends reshaping industrial real estate, where power capacity has emerged as a defining feature of modern warehouse facilities. 

"There was always transportation one, availability of labor two, and rent three," Page said. But now, “power availability is probably number one or number two.” 

The shift has been driven by a combination of factors: fleet electrification, solar installations, the growing adoption of warehouse automation and robotics, and power requirements for data centers. 

Does Warehouse Location Still Matter More Than Building Quality? 

In short, yes. While modern Class-A warehouse space with state-of-the-art specs is in high demand, Page emphasized that location remains the dominant factor for most industrial occupiers, particularly those focused on last-mile distribution. 

The push toward faster delivery times has made proximity to population centers more critical than ever. Delivery expectations have compressed dramatically. Page noted that same-day and even 30-minute delivery windows are being tested in some markets, and that data consistently shows faster delivery drives higher sales. For occupiers serving end consumers, an irreplaceable infill location often outweighs a perfect building spec. 

That said, the answer varies by use case. A retailer's returns operation, which is more cost-sensitive, may have different location and building requirements than its last-mile fulfillment arm, which prioritizes speed. Even within the same organization, Page noted, different business lines have distinct real estate needs, making industrial a diverse and bifurcated market. 

Link Logistics' development pipeline reflects this thesis. The firm currently has approximately 3 million square feet under development, all in premier infill locations planned as spec, multi-tenant, state-of-the-art facilities.  

How Will AI and Data Shape Industrial Real Estate Decisions? 

While industrial real estate is only beginning to see the impact of AI and data analytics, Page said Link Logistics uses its Research & Analytics capabilities to inform acquisition, leasing and operational strategies.  

"We are leveraging AI to help us try to spot demand—where it's coming from, where we should be buying buildings," Page said. "I don't think we've even scratched the surface on how AI is going to impact our business." 

Page sees these capabilities as a key differentiator that will help the firm stay ahead of where demand is heading. 

What Are the Secular Tailwinds for Industrial Real Estate? 

Looking ahead, three structural demand drivers position industrial real estate for continued growth: 

"We've got really great secular tailwinds," Page said. "E-commerce continues. We talk about onshoring and nearshoring. And then we've got this data center demand." 

Combined with construction of new industrial space having tapered significantly, these demand drivers create favorable conditions for owners of well-located last-mile industrial real estate. 

Frequently Asked Questions About Industrial Real Estate in 2026 

Why is power availability important for warehouse tenants? Power has risen to the top of tenant priority lists due to fleet electrification, warehouse automation, solar installations and data center and AI-related requirements. Many tenants now rank power availability alongside or above transportation access and labor availability when evaluating warehouse facilities. Learn more about how power capacity is reshaping modern warehouses. 

How important is warehouse location compared to building quality? For most industrial occupiers, proximity to population centers is especially critical for last-mile distribution, where faster delivery windows, including same-day and 30-minute delivery in some markets, drive higher sales. An irreplaceable infill location often outweighs newer building specifications. 

How is AI changing industrial real estate? Industrial real estate firms are beginning to leverage AI and data analytics to forecast demand, predict rent trends and inform investment decisions. Link Logistics uses AI and data from its position as a Blackstone portfolio company to identify emerging opportunities across its approximately 3,000-building portfolio. 

What are the main demand drivers for industrial real estate? Three structural tailwinds are driving demand: continued e-commerce growth and the speed expectations it creates, onshoring and nearshoring of manufacturing operations, and emerging data center-related spillover space demand as contractors and service providers seek nearby warehouse space to support data center builds and AI infrastructure.  

Why did bulk warehouse leasing slow in 2025? Economic uncertainty, increased C-suite involvement in real estate decisions and significant capital requirements for large facilities caused many occupiers to delay commitments on spaces above 250,000 square feet. Activity rebounded in Q4 2025 as tenants' internal capacity buffers shrank and the need to make decisions became more urgent.  

What is shadow space in industrial real estate? Shadow space refers to industrial space that is leased but not fully in use within a tenant’s existing warehouse network. During the pandemic, many companies leased more warehouse space than they immediately needed. As that extra capacity has been absorbed over time, occupiers are re-entering the market to secure new space, driving renewed leasing demand.