Top 10 Markets for Industrial Deliveries

The U.S. industrial sector experienced changes in both the number of projects coming online and the asset types being built. Over the previous years, more than 90 percent of industrial starts were from warehouses and distribution facilities, but the focus is now shifting towards manufacturing and data centers. The top 10 markets for industrial deliveries all feature a mix of diverse space that was brought online.

In terms of completions, only 358 million square feet of industrial space came online in 2024, a significant drop from the past three years, yet still higher than any year before 2020, according to CommercialEdge data. This year, deliveries are expected to decrease further, with only 236 million square feet starting construction in 2024.

Here are last year’s top 10 markets for industrial deliveries in the U.S., based on CommercialEdge data. These metros accounted for almost half of total completions nationally.

1. Phoenix

Phoenix led the nation in completions, contributing more than 9 percent of the total U.S deliveries last year. The metro saw 162 projects come online, amounting to 32.6 million square feet.

This figure is slightly lower than the 34 million square feet delivered in 2023. However, the market had the second-largest under-construction pipeline as of December, with 22.4 million square feet in the works.

In August, IndiCap and Invesco Real Estate completed the first phase of Virgin Industrial Park, consisting of three buildings totaling about 1 million square feet in Glendale, Ariz. Upon full build-out, the campus will include two more facilities, bringing the industrial park to 1.5 million square feet.

2. Dallas

Despite ranking second nationally among the top markets for industrial deliveries, Dallas' completions dropped by 58 percent year-over-year as of December. The metro saw 29.1 million square feet delivered across 114 projects, making up 8 percent of national deliveries.

However, Dallas-Fort Worth continues to thrive as the national leader of cold storage development. Between 2019 and 2024, eight such facilities totaling 2.9 million square feet came online. At the end of the year, The Metroplex also had the third-largest under-construction pipeline, with 19.1 million square feet underway.

One of the largest projects completed in the metro last year was Transwestern Development Co.’s Mid-Cities Logistics, a five-building, 908,300-square-foot logistics hub in southeast Fort Worth, Texas. These facilities are designed for storage, distribution and light manufacturing purposes.

3. Inland Empire

With 70 projects totaling 20.8 million square feet coming online last year, the Inland Empire rounded out the top three markets for industrial deliveries. This figure accounts for almost 6 percent of the U.S. total.

The metro’s completions pipeline mirrored national industrial trends, shrinking from the 26.5 million square feet registered in 2023. One of the largest facilities delivered last year is Affinius Capital’s Building 1 at Beaumont Crossroads Logistics Park II in Beaumont Capital, Calif., spanning almost 1.9 million square feet.

In terms of under-construction pipeline, the metro holds steady. As of December, the Inland Empire had 9.1 million square feet underway across 21 projects.

4. Chicago

Chicago’s industrial deliveries in 2024 amounted to roughly 13.7 million square feet. The metro saw 40 developments coming online, a steep decline from the 83 projects totaling 29.3 million square feet completed in 2023.

Last year, Bridge Industrial completed two buildings within Bridge Point Melrose Park, measuring almost 1.4 million square feet. Upon full build-out, the Melrose Park, Ill., campus will span more than 1.5 million square feet.

Additionally, the metro had 20 projects under construction, which will add about 7.6 million square feet upon delivery. Trammell Crow Co. is currently working on one of the largest developments in the market. The firm broke ground on the first building at Plainfield Business Center in Plainfield, Ill., which is expected to encompass more than 8 million square feet when completed.

5. Houston

Houston’s industrial deliveries in 2024 comprised 67 projects totaling 12.2 million square feet. This represents only 3.4 percent of the national completions and marked a significant decrease from the 29.5 million square feet that came online in 2023 across 121 developments. The metro also had 12.9 million square feet under construction as of December.

Last summer, Capital Development Partners completed Cedar Point Logistics Center Building II, an 800,405-square-foot facility in Baytown, Texas. The building is part of a 90-acre campus that also encompasses an 800,500-square-foot warehouse completed in 2022.

6. Savannah-Hilton Head

Savannah-Hilton Head’s industrial deliveries last year were nearly half of those registered in 2023. The metro saw only 24 projects spanning 11.8 million square feet come online, about 3.3 percent of the national total.

However, the market has a silver lining. As of December, the metro had 14 developments underway totaling 23.9 million square feet, the largest under-construction pipeline in the U.S.

That number is expected to increase as more projects break ground. This month, Trinity Capital and Barings started construction on the second phase of Horizon 16 Industrial Park in Savannah, which will add 1.5 million square feet across six buildings.

7. Las Vegas

Last year, Las Vegas saw more than 11.2 million square feet of industrial space completed across 43 projects. As a result, it was one of the top 10 industrial markets for deliveries. The metro had slightly larger facilities delivered compared to 2023, when 49 developments totaling 10.9 million square feet came online.

The largest warehouse completed last year is NorthPoint Development’s Building 2 within North Vegas Logistics Center, according to CommercialEdge. The facility spans 1 million square feet and is part of a two-building campus totaling more than 2 million square feet.

8. Charlotte

Charlotte’s industrial deliveries dropped by more than 25 percent year-over-year as of December. Last year, the metro saw 37 projects spanning 11.1 million square feet come online. Additionally, the market’s under-construction pipeline at the end of the year clocked in at 5.7 million square feet.

One of the most notable deliveries in the area is The Silverman Group’s 1.4 million-square-foot 1305 Liberty Ridge Road in China Grove, N.C. The Class A fulfillment center was a build-to-suit project for Macy’s.

9. New Jersey

Last year, New Jersey saw more than 10 million square feet of industrial space delivered across 49 projects. This represents a nearly 25 percent decrease from 2023, when 59 logistics hubs totaling 14.2 million square feet were completed.

Following a period of robust construction and leasing activity, the metro is now experiencing a slower pace due to rising vacancy rates and increasing local opposition to new developments. As of December, the market had 5.5 million square feet under construction across 28 projects, the smallest pipeline among these metros.

In June, Bridge Industrial completed Bridge Point 999, a 291,758-square-foot building in South Brunswick, N.J. The developer financed the construction with a $53.5 million loan originated by Mesa West Capital.

10. Austin

In the last decade, Austin has emerged as a prime location for both commercial and residential development. Last year, the metro maintained its status as one of the top markets for industrial deliveries, with 10 million square feet across 88 projects completed, with no single facility exceeding 400,000 square feet.

These numbers are consistent with those in 2023, when 10.6 million square feet came online across 82 developments. Additionally, the market had 13.5 million square feet under construction across 63 projects as of December.