The U.S. industrial landscape is undergoing a major reshaping, with logistics users moving large-scale distribution away from coastal gateways and into lower-cost inland hubs, according to new research from Cushman & Wakefield. Port-proximate markets captured just 19% of total U.S. net absorption in 2025, their lowest share in 15 years, marking a significant departure from long-standing coastal-focused strategies.
Overall, industrial net absorption rose 16.3% year-over-year, but inland markets outpaced their coastal counterparts. Inland hubs recorded 21% growth in demand, compared with just 2% for port-adjacent markets.
"Industrial occupiers are redesigning logistics networks around cost, resilience, and flexibility," Jason Price, Americas Head of Logistics & Industrial Research at Cushman & Wakefield.
"Port proximity remains important for speed-to-market and cross-dock functions, but large-scale distribution activity is increasingly shifting inland where occupiers can access lower costs, more land, and modern facilities."
Rising costs in coastal markets are accelerating the shift, the report noted. Industrial rents at port hubs climbed 65% between 2019 and 2023 and remain roughly 33% above the national average. For occupiers seeking facilities larger than 500,000 square feet, inland locations offer a more viable path to scale.
Global trade dynamics are also reshaping industrial demand. Imports from China fell roughly 30% year-over-year in 2025 as companies diversified sourcing to Southeast Asia and Mexico to reduce tariff exposure and supply-chain risk. Mexico, the U.S.'s largest trading partner, exported $534 billion in goods last year, much of it moving through land ports such as Laredo and El Paso, feeding inland logistics corridors tied to major population centers, the report said.
Despite the inland surge, port markets remain relevant. Cargo volumes at the nation's 10 largest maritime ports declined just 0.3% last year, underscoring their continued role in global trade. Cushman & Wakefield expects demand in many port markets to stabilize as development pipelines shrink and supply-chain strategies continue to evolve.
"Port markets remain strategically important, but investors and occupiers are becoming far more selective," Price said.
"Building quality, infrastructure access, and proximity to population centers increasingly matter more than simply being located near a port."
The report concludes that while trade policy uncertainty may create short-term volatility, the long-term fundamentals supporting industrial real estate demand remain intact, particularly for modern logistics facilities that support automation, AI-enabled operations and high-throughput distribution.
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