Manufacturing companies are becoming a larger force in U.S. industrial leasing as businesses rethink supply chains, expand distribution networks and seek greater flexibility amid shifting trade policies and geopolitical uncertainty.
Manufacturers completed more than 327 million square feet of industrial leasing transactions from the beginning of 2025 through the first quarter of 2026, surpassing retailer and wholesaler demand by 38%, according to a new report from Cushman & Wakefield.
The shift marks a notable change in industrial tenant dynamics. Third-party logistics providers (3PLs) have historically been the largest source of industrial demand, accounting for roughly 30% of annual leasing activity, while retailers and wholesalers typically represented 20% to 24%.
Since 2024, manufacturing leasing has accelerated as companies adjust location strategies and build more resilient supply chains. For the first time in recent history, quarterly leasing activity from manufacturers was the highest among all tenant categories, narrowly surpassing 3PL activity.
The increase does not necessarily represent a return to traditional factory demand. Instead, many manufacturers are seeking logistics-oriented industrial space to support inventory strategies, supplier networks and regional distribution.
Consumer goods companies have been the largest source of manufacturing-related demand, accounting for 45.8 million square feet of leasing activity. Automotive and mobility users followed with 27.7 million square feet, while energy and utilities companies accounted for 18.2 million square feet.
Other active users included computers and high-tech companies with 16.8 million square feet, paper and packaging companies with 14.7 million square feet, industrial equipment users with 13.7 million square feet and life sciences and medical device companies with 13.4 million square feet.
Texas has emerged as a major market for advanced manufacturing-related demand, with computers and high-tech users accounting for 5.8 million square feet of leasing activity, automotive and EV users at 5.2 million square feet and data center-related users at 3.4 million square feet. Available land, power infrastructure and technology supply chains have helped attract investment.
The Southeast has seen some of the broadest activity, led by consumer goods users with 10.7 million square feet, automotive and EV companies with five million square feet and packaging users with 3.8 million square feet.
Midwest markets continue to benefit from established industrial ecosystems, with demand spanning consumer goods, automotive, industrial equipment and life sciences users. California's activity has been more concentrated in specialized sectors, including computers and high-tech, aerospace and defense, as well as life sciences.
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