- Industrial MSA markets show occupancies above 92%, with some reporting 100% full.
- CMBS delinquency rates for industrial assets average just 0.37% across top 25 MSAs.
- Q4 2025 industrial loan originations reached $3.8B in top 25 MSAs.
- Capital flows and consolidation activity remain strong across major US metros.
Near-Full Occupancy Nationwide
According to Trepp, major US industrial MSAs continue to demonstrate exceptionally tight market conditions. Weighted average occupancy for the sector exceeds 92% across the top 25 MSAs, with Charlotte, Pittsburgh, and St. Louis posting 100% occupancy rates. Several other large metros, including Riverside-San Bernardino, Phoenix, and New York, are also nearing full capacity. This widespread demand highlights ongoing strength in industrial space across the country.
Minimal CMBS Delinquency
Industrial MSA loan performance remains resilient. As of February 2026, the average CMBS delinquency rate stands at just 0.67%, with many major markets effectively reporting zero delinquencies. Even in the highest case, Chicago, the delinquency rate is 2.45%. This compares favorably with multifamily CMBS delinquencies, reinforcing the sector’s stability. The low default rates underscore the ongoing strength of industrial assets relative to other property types.
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Capital Market Momentum
Capital continues to move into the industrial sector, with Q4 2025 origination volume across top industrial MSAs reaching approximately $3.8B. Riverside-San Bernardino led with $593M in new loans, followed by markets such as Atlanta, New York, Los Angeles, and Dallas-Fort Worth. Activity is widely distributed rather than limited to select coastal hubs. Major institutional players remain active, pursuing portfolio deals and leveraging consolidation strategies to achieve scale and efficiency. At the same time, regional performance gaps are emerging across the country, with some Sun Belt markets commanding significantly higher industrial rents while many Midwest metros continue to trail national averages.
Why It Matters
The fundamentals for industrial MSAs remain exceptionally strong as other commercial real estate sectors face headwinds. With near-full occupancy, stable rents, minimal CMBS delinquency, and robust lending activity, industrial remains a bright spot for CRE investors. The data underline industrial’s ongoing resilience and appeal in a shifting market landscape.
