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In Q1 2026, the U.S. industrial real estate market is cooling, with rising vacancy rates driven by excess new supply and slowing rent growth, though fundamentals remain stable as construction activity declines. The broader commercial sector—especially office—continues to struggle, with high vacancies and falling property values due to hybrid work trends and elevated interest rates. Based on past cycles, these conditions suggest the market is nearing a stabilization point, with recovery likely once supply tightens and demand strengthens.

