09/16/2026
Industrial construction has pulled back significantly from the levels reached earlier in this cycle. According to Affinius research reported by GlobeSt, U.S. industrial space under construction declined from 710 million to 318 million square feet, while Q1 2026 construction starts totaled just 53 million square feet, the lowest quarterly level since 2014.
The result could be a more favorable supply environment for certain existing properties as fewer new buildings are delivered. The research points particularly to modern, functional industrial facilities, while also emphasizing that the outlook will vary by market, building size and property type.
That supply dynamic is relevant to how we evaluate both existing industrial assets and future development. Kingsbarn acquired Tangent Logistics Center in Oregon in December 2021, a roughly 500,000-square-foot, nine-building industrial park with 50 acres of adjacent land. A new 160,000-square-foot concrete-panel industrial building is planned to break ground on the adjacent land in Q3 2027.
Less construction alone does not determine performance. Local supply and absorption, tenant demand, building functionality, location and development timing will continue to shape which properties and projects are better positioned as the industrial market adjusts.
Source: GlobeSt, “Industrial Construction Drought Sets Up New Rent Growth Cycle,” August 3, 2026, citing Affinius research. https://www.globest.com/2026/08/03/industrial-construction-drought-sets-up-new-rent-growth-cycle
