Clarion Partners Reports Record 8 Million SF Industrial Leasing Across U.S. and Europe in Early 2026

Clarion Partners announced more than 8 million square feet of newly executed industrial real estate leases year-to-date through the first quarter of 2026, with 7.1 million square feet (MSF) in the United States and 1.0 MSF in Europe, the firm said April 27. The results represent the strongest first quarter in the firm's 40-plus year U.S. history and the strongest Q1 for its European platform since it was established in 2020.

U.S. Industrial Leasing Activity

Clarion Partners executed 35 new leases across its U.S. industrial portfolio during the quarter, concentrated in major logistics and distribution markets. Dallas/Fort Worth led all U.S. markets with 1.1 MSF of new leasing, followed by Lehigh Valley at 1.0 MSF, Indianapolis at 800,000 square feet, Inland Empire at 756,000 square feet, and New Jersey at 445,000 square feet.

The vacancy rate across the firm's nearly 220 MSF U.S. industrial portfolio declined by 175 basis points over the first quarter. Nationally, U.S. industrial vacancy held steady at 6.7% in Q1 2026 — the first quarter without a sequential increase since early 2022, according to the firm. Class A warehouse net absorption accelerated both quarter-over-quarter and year-over-year, exceeding new construction deliveries for the first time in nearly five years.

Leasing in the 1 MSF-and-above segment was particularly active, with 19 MSF of net absorption in Q1. Vacancy in that size segment fell 170 basis points year-over-year to 4.2%, the lowest among all size segments nationally. The firm noted that leasing in the big-box and e-commerce segment has historically served as a leading indicator for broader activity across other industrial tenant types and building sizes.

Dayton Conklin, Managing Director and Head of Clarion Partners' U.S. Industrial Platform, attributed part of the demand dynamic to the age of existing supply. "With two thirds of U.S. inventory built before 2000, obsolescence continues to support positive rent growth in newer, state-of-the-art facilities," Conklin said.

European Industrial Portfolio Sets Q1 Record

Clarion Partners' European industrial platform also set a first-quarter leasing record, with 1.0 MSF of newly executed leases. The Netherlands led European activity at 454,000 square feet, followed by Spain at 238,000 square feet, France at 205,000 square feet, and the United Kingdom at 102,000 square feet.

European market vacancy stabilized at 5.5% in Q4 2025, a signal the firm described as indicating the market may be approaching or already at peak vacancy. A bifurcation between modern Grade A buildings and older stock is increasingly evident, with vacancy for Grade A assets remaining below 3% in core Western European markets.

Alistair Calvert, CEO of Clarion Partners Europe, pointed to tenant preferences as a key driver. "Tenants continue to prioritize modern facilities that provide higher clear heights, advanced loading capabilities, ESG features, automation readiness, and proximity to labor and transportation nodes," Calvert said. "This trend is particularly evident in urban infill and major distribution corridors, where supply remains constrained and demand for best-in-class space continues to outpace availability."

E-Commerce and 3PLs Drive Demand Across Both Markets

Tenant demand in both the U.S. and Europe was driven primarily by e-commerce companies and third-party logistics providers, the firm said, reflecting ongoing shifts in global supply chains and the need for modern distribution infrastructure.

Strategy and Portfolio

Clarion Partners said it remains focused on expanding its industrial platform through development, strategic acquisitions, and active asset management across what it described as high-conviction markets in the U.S. and Europe. The firm did not disclose specific acquisition targets, development pipelines, or financial terms in connection with the announcement.

The firm's U.S. industrial portfolio spans nearly 220 MSF. Its European platform, built out since 2020, includes holdings across the Netherlands, Spain, France, and the United Kingdom, among other markets.

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Sources: Clarion Partners – Clarion Reports Record Leasing Activity Across Its U.S. and European Industrial Business (April 27, 2026)