- Richmond, VA ranked as the top small-bay industrial market, driven by limited new inventory and one of the lowest vacancy rates among major US markets.
- Oklahoma City led the big-box industrial sector, buoyed by strong owner-user activity and tight availability in newer properties.
- Other standout markets include Tampa and Nashville, which have seen notable rent growth and leasing activity across both sectors.
Small-Bay Market Leaders
Richmond, VA topped CoStar’s small-bay industrial rankings due to limited inventory growth and minimal vacancy expansion, reports CoStar. Demolition of aging small-bay space helped balance the impact of new supply, keeping overall availability tight. Richmond maintains one of the lowest vacancy rates among markets with more than 100M SF of industrial inventory.
Other notable small-bay markets include:
- Tampa, FL, which recorded the highest rent gains in this sector among the top 54 US markets.
- Nashville, TN, where leasing activity has surged, outpacing pre-pandemic levels.
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Big-Box Market Standouts
Oklahoma City topped big-box rankings thanks to strong leasing by large tenants and low availability in recently built properties. CoStar credits the city’s dominance by owner-users, who occupy nearly half of the big-box inventory. This ownership dynamic helps maintain tight vacancy levels despite new construction.
Other high-performing big-box markets include:
- Nashville, where strong tenant demand has kept vacancy rates stable amid significant new supply.
- Richmond, again notable for its restrained supply growth, resulting in low availability in modern facilities.
Why It Matters
The industrial market continues to bifurcate based on supply dynamics and occupier demand. Markets like Richmond and Oklahoma City show how limited new development and strong leasing fundamentals can insulate vacancy rates. This makes them more resilient amid broader economic shifts.
What’s Next
As industrial developers assess market entry and expansion strategies, areas with healthy fundamentals are likely to remain favored. These include low availability, consistent demand, and disciplined construction. Both small-bay and big-box segments are seeing differentiated performance based on local ownership patterns and inventory control. This suggests continued market segmentation heading into 2026.
