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Industrial Real Estate Demand Moves Inland

[ March 25, 2026   //   ]

U.S. industrial real estate demand is increasingly moving away from coastal ports toward inland logistics hubs, according to new research from Cushman & Wakefield, as trade patterns, tariffs and rising coastal costs reshape supply chains.

Port-proximate markets accounted for just 19 percent of U.S. industrial net absorption in 2025 – the lowest share in 15 years – despite relatively stable cargo volumes at major ports, which fell only 0.3 percent. Overall industrial demand grew 16.3 percent year over year, with inland markets capturing most of the growth at 21 percent, compared with just 2 percent in port markets.

The report points to higher coastal costs as a key driver. Industrial rents in port markets are about 33 percent above the national average after rising 65 percent since 2019, prompting occupiers – especially those requiring large distribution facilities – to shift inland where land and operating costs are lower.

Trade flows are also evolving. Imports from China declined roughly 30 percent in 2025 as companies diversified sourcing toward Southeast Asia and Mexico, the latter now the largest U.S. trading partner with $534 billion in exports to the United States. Much of that cargo moves through land ports such as Laredo and El Paso, supporting inland distribution corridors.

Cushman & Wakefield said port markets remain important for international trade but are playing a more specialized role focused on cross-docking and regional distribution, while large-scale warehousing and fulfillment operations increasingly cluster inland near population centers and cross-border gateways.

Looking ahead, the firm expects port markets to stabilize, but anticipates continued selective demand as occupiers prioritize cost, infrastructure quality and network flexibility in their logistics strategies.

The report is available at https://tinyurl.com/3uf9kchn.

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