# Industrial Benchmarks Research

## Purpose

- Supports `knowledge/industrial-benchmarks.md`
- Intended to justify reusable U.S. industrial benchmark guidance used across industrial skills

## U.S.-Only Assumptions

- Benchmarks are U.S.-centric and directional
- They are designed for acquisitions and underwriting, not appraisal or formal valuation reports
- Benchmarks should vary by subtype, market position, and building quality

## Source Table

| Source | Publisher | URL | Publish Date | Access Date | Source Type | Notes |
|--------|-----------|-----|--------------|-------------|-------------|-------|
| Industrial Space Demand Forecast, First Quarter 2026 | NAIOP | https://www.naiop.org/research-and-publications/research-reports/reports/industrial-space-demand-forecast-first-quarter-2026/ | 2026-03 | 2026-04-22 | Institutional research | Absorption, vacancy, and rent-pressure backdrop |
| U.S. Industrial Real Estate Market Indicators | JLL | https://www.jll.com/en-us/insights/market-dynamics/industrial-market-statistics-trends | 2026-01 | 2026-04-22 | Institutional research | National stats reference |
| U.S. Industrial MarketBeat | Cushman & Wakefield | https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/us-industrial-marketbeat | 2026-04 | 2026-04-22 | Institutional research | Newer-space demand and activity |
| U.S. Real Estate Market Outlook 2025 - Industrial & Logistics | CBRE | https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025/industrial | 2025-01 | 2026-04-22 | Institutional research | Structural demand drivers |
| Applied Automation in the Warehouse Boosts Value Across Stakeholders | Prologis Research | https://www.prologis.com/insights-news/research/applied-automation-warehouse-boosts-value-across-stakeholders | 2026-04 | 2026-04-22 | Quasi-primary market participant research | Functional benchmarking for modern buildings |
| The Industrial Spec Sweet Spot - What Tenants Want | Cushman & Wakefield | https://www.cushmanwakefield.com/en/united-states/insights/the-industrial-spec-sweet-spot-what-tenants-want | 2021-05-07 | 2026-04-22 | Institutional research | Occupier preference context |
| New & Noteworthy | NAIOP | https://www.naiop.org/research-and-publications/magazine/2023/Spring-2023/development-ownership/new-and-noteworthy/ | 2023-03 | 2026-04-22 | Institutional project examples | Modern spec examples |
| Commercial Real Estate Magazine Spring 2025 | NAIOP | https://www.naiop.org/globalassets/magazine/2025/spring-2025/2025_spring.pdf | 2025-03 | 2026-04-22 | Institutional project examples | Current Class A spec examples |
| Q4 2025 and Full Year 2025 Earnings Release | Prologis / SEC | https://www.sec.gov/Archives/edgar/data/1045609/000119312526017256/pld-ex99_1.htm | 2026-01 | 2026-04-22 | Primary public filing | Occupancy, turnover, and capital-cost context |
| 2025 Annual Report | Prologis / SEC | https://www.sec.gov/Archives/edgar/data/0001045609/000119312526115137/d72446dars.pdf | 2026-03 | 2026-04-22 | Primary public filing | Mark-to-market, occupancy, leasing evidence |

## Key Findings

- Industrial benchmarks should be grouped by subtype and building quality, not treated as one national table.
- The most useful benchmark categories are:
  - vacancy and occupancy context
  - rent-growth direction
  - clear-height and loading competitiveness
  - trailer and auto parking sufficiency
  - power and automation readiness
  - downtime, TI, and LC sensitivity
- Modern industrial demand is concentrating in newer, more efficient buildings with better loading, power, and circulation.
- Benchmarks should tell users what to look for, but should stop short of pretending that a single national number fits all markets.

## Benchmark and Formula Decisions

- Use bands and narratives instead of one-size-fits-all hard numbers whenever market dispersion is high.
- Structure the knowledge base around:
  - bulk distribution
  - shallow-bay
  - flex industrial
  - single-tenant net-leased
  - infill logistics
- Include practical benchmark language such as:
  - lower vs higher relative competitiveness
  - older vs modern product positioning
  - subtype-appropriate release risk
- Keep rent growth, vacancy, and capital-market statistics date-stamped and explicitly directional.

## Conflicting Source Resolution

- Institutional sources vary by methodology and timing, especially around vacancy and absorption. Use them to define market direction and operating logic, not to fixate on a single national point estimate.
- Older spec-preference surveys remain useful for design priorities but should be tempered by newer market commentary and current project examples.

## Edge Cases and Red Flags

- Cold storage, heavy manufacturing, and specialized lab / R&D industrial should not rely on a standard industrial benchmark table
- Infill shallow-bay properties can outperform bulk metrics in land-constrained urban markets
- Legacy properties with exceptional locations may still outperform headline spec benchmarks

## Open Questions

- Whether future versions should add separate cold storage and manufacturing benchmark sections
- Whether future versions should add local-market benchmark appendices for major logistics metros
- Whether capital-expenditure benchmark tables should be broken out by subtype in a later release
