CBRE’s latest U.S. Industrial & Logistics Occupier Survey highlights a clear shift in priorities for industrial users, with occupiers emphasizing cost control and higher-quality space while expanding domestic manufacturing footprints.
Survey responses show that occupancy-related expenses have moved to the forefront of decision-making, influencing business operations and location strategies. In response, industrial owners and landlords are offering richer incentives and initiating renewal discussions earlier in lease terms to retain tenants. CBRE reports that renewal lease terms rose by 15.2% in 2025, and the firm expects further increases in 2026 as landlords concentrate on sustaining occupancy.
Lease rollover is a notable issue in the near term. Two-thirds of respondents indicated that more than a quarter of their leases will expire within the next 36 months, representing more than 1.7 billion square feet. This wave of expirations is expected to give occupiers an opportunity to reassess location, building quality, and operational efficiency while landlords compete more actively for renewals.
The survey also challenges some prevailing narratives about power and artificial intelligence as dominant concerns. Half of respondents reported being somewhat concerned about power availability and grid reliability, yet fewer than 3% ranked power among their top challenges or site-selection factors. James Breeze, CBRE’s vice president and head of industrial research for the Americas, noted that this outcome ran counter to the firm’s initial thesis that power would be a leading priority for expanding occupiers.
Manufacturing emerged as a major growth theme. More than 50% of companies with U.S. manufacturing operations said they are actively expanding or intend to do so over the next 36 months. Protecting domestic inventory to serve American consumers, rather than tariff avoidance, was highlighted as a key motivation. Respondents also cited the mounting fragility of global supply chains, with Breeze describing increased domestic manufacturing as a way to mitigate that risk.
Location strategy remains central, and the survey points to the Southeast as a favored expansion region, targeted by 36% of respondents planning to grow their operations. Breeze attributed this interest to population growth that deepens the labor pool, lower land costs, pro-business state governments, available incentives, and access to seaports that facilitate raw material flows. He identified markets near logistics hubs such as Greenville, South Carolina, and Savannah, Georgia, as likely expansion targets, and noted that markets in Virginia could see further manufacturing growth where industrial expansion aligns with rising data center demand.
Overall, the report concludes that survey findings align with CBRE’s broader industrial outlook, underscoring continued flight to quality, rising use of third-party logistics and further domestic manufacturing expansion. Despite current cost pressures, Breeze described the industrial real estate outlook as cautiously optimistic.
