- Cleveland ranked as the top US market for industrial investment due to its strategic infrastructure and low 2.6% vacancy rate.
- Jacksonville, benefiting from port expansions and population growth, experienced strong industrial demand despite a 6.1% vacancy rate.
- Houston and California’s Inland Empire showed healthy leasing activity, supported by port access and logistics demand.
- Eco-friendly properties are increasingly appealing to investors across the nation.
A new Crexi report highlights the top 10 US industrial markets for CRE investment in 2025, pointing out Cleveland, Jacksonville, and Houston as prime markets with strong fundamentals despite mixed national vacancy trends.
1. Cleveland, OH
Cleveland led the nation’s industrial investment markets due to its strategic infrastructure that attracts logistics and manufacturing businesses, as reported by GlobeSt.
Cleveland presents attractive fundamentals, with a low 2.6% vacancy rate and asking rents averaging $4 PSF. The median sale price for industrial space stood at $50 PSF, indicating affordability relative to other key markets.
2. Jacksonville, FL
Jacksonville ranked second, supported by population growth, expanding infrastructure, and private-sector employment gains. The city’s SSA port terminal expansion, set to double its capacity by mid-2025, further positions the market for logistics-driven demand.
Despite a 6.1% vacancy rate, asking rents have remained stable at $13 PSF, with a median sale price of $111 PSF.
3. Houston, TX
Houston claimed the third spot, driven by strong port activity and logistics demand. In Q3 alone, the metro saw a net absorption of 6.2 MSF, contributing to a 2024 total of 16.3 MSF.
New construction totaling 11.1 MSF signals continued development momentum. Asking rents average $11 PSF, with a median sale price of $141 PSF.
4. Inland Empire, CA
The Inland Empire remains a pivotal market for industrial investment, with its proximity to major ports bolstering logistics demand. In Q3, the market saw 70% more new leasing activity for spaces between 250 KSF and nearly 500 KSF.
Despite a 7.9% vacancy rate, asking rents remained competitive at just $1 PSF monthly due to historically high supply (even for sublease space). By contrast, median sale prices reached $302 PSF.
5. Orlando, FL
Economic growth and population expansion fueled demand for industrial space, with 30% of the city’s 4.3 MSF of new construction pre-leased. Vacancies stood at 8.1%, with annual asking rents averaging $16 PSF and a median sale price of $222 PSF.
6. Richmond, VA
Positioned as an emerging industrial hub, Richmond benefits from its proximity to 75% of the US population within a 48-hour drive. The local vacancy rate dropped to 3.4%, while annual asking rents averaged $8 PSF, with a median sale price of $189.
7. Las Vegas, NV
With nearly 4 MSF delivered in Q1, Las Vegas is set to surpass 16 MSF of new space by year-end. Despite a 4.9% vacancy rate, tenant demand remained strong, with 2.8 MSF leased. Asking rents reached $15 PSF, with a median sale price of $277 PSF.
8. Denver, CO
Leasing activity surged in Q3, rising 38% QoQ and 60% YoY. Vacancies dipped slightly to 7.7%, while annual asking rents averaged $19 PSF, with a median sale price of $263 PSF.
9. Louisville, KY
Leveraging its location as a logistics hub, the market absorbed 1.8 MSF in Q3, lowering the vacancy rate to 3.4%. Asking rents averaged $8 PSF, while median sale prices were $70 PSF.
10. Philadelphia, PA
Benefiting from its strategic position along the I-95 corridor, the market saw a 60-bp drop in vacancy to 8.6%. Asking rents held steady at $12 PSF, while the median sale price was $106 PSF.
What’s Driving Interest?
Crexi’s report suggests that despite regional variations, industrial investment opportunities remain strong in markets with strategic infrastructure, port access, and logistics capacity.
Additionally, growing investor preference for eco-friendly and energy-efficient properties is shaping long-term development trends.
The continued expansion of port infrastructure, population growth, and balanced supply-demand dynamics across several regions suggest that industrial markets will remain a top target for CRE investors in 2025.
