CoStar Group Inc. Ranks Leading U.S. Industrial Markets in Press Release
In a recent press release dated December 18, 2025, CoStar Group Inc. unveiled its rankings of the top-performing small-bay and big-box industrial markets in the United States. This comprehensive analysis, rooted in Z-score methodology, highlights Richmond, Virginia, as the leading small-bay market and Oklahoma City, Oklahoma, as the premier big-box market.
1. Richmond: The Small-Bay Leader
Richmond has secured its position at the top of the small-bay sector, attributed to its limited inventory growth over the past decade and a minimal expansion in vacancy rates. Juan Arias, CoStar's national director of industrial analytics, emphasized the city's strong demand for industrial space, noting that it maintains one of the lowest vacancy rates among markets with over 100 million square feet of inventory.
Key Factors for Richmond's Success
- Limited Supply Growth: Over the last ten years, Richmond has successfully managed its inventory, leading to a tight supply in the small-bay market.
- Strong Demand: The market has witnessed a significant increase in leasing activity, with a notable amount of small-bay space being demolished to balance the impact of new supply.
Other notable markets in the small-bay sector include Tampa, which recorded the highest rent gains among the top 54 markets, and Nashville, which has shown robust leasing activity reflecting a recovery relative to pre-pandemic levels.
2. Oklahoma City: Dominating the Big-Box Sector
Oklahoma City has taken the top spot in the big-box industrial market due to its healthy leasing activity and a low availability rate among newer properties. Arias pointed out that owner-users occupy nearly half of the market's overall stock, a unique situation that contributes to maintaining tight space availability despite construction surges.
Oklahoma City's Distinct Market Dynamics
- Owner-User Dominance: The prevalence of owner-users helps stabilize the availability of big-box spaces, ensuring that the market remains competitive.
- Healthy Demand: While Nashville has experienced significant new supply, its robust demand from large occupiers has mitigated increases in vacancy rates.
Other high-performing big-box markets also reflect a strong demand, with Nashville managing to balance new construction with consistent tenant interest.
3. Analyzing the Small-Bay and Big-Box Markets
CoStar's analysis employed distinct metrics for both sectors to evaluate their performance:
Small-Bay Analysis Metrics
- Leasing Activity: Evaluated for sub-50,000-square-foot spaces over the last two years compared to pre-pandemic averages.
- Vacancy Rate Expansion: Assessed for properties between 10,000 to 100,000 square feet.
- Inventory Growth: Measured for properties 100,000 square feet or smaller since 2015.
- Rent Increases: Compared pre-pandemic and current asking rental rates for small-bay spaces.
Big-Box Analysis Metrics
- Leasing Activity: Focused on logistics spaces of 50,000 square feet or more over the last two years relative to pre-pandemic averages.
- Vacancy Rate Expansion: Analyzed for logistics properties over 100,000 square feet.
- Availability Rate of New Properties: Evaluated for competitiveness among newer constructions since 2021.
4. Conclusion
CoStar Group's detailed analysis provides a clear picture of the industrial real estate landscape in the U.S., spotlighting Richmond and Oklahoma City as leaders in their respective sectors. As demand for industrial spaces continues to rise, these rankings underline the importance of strategic market management and highlight areas of opportunity for investors and stakeholders in the commercial real estate sector.
For further insights and in-depth analysis, CoStar Group continues to serve as a vital resource in navigating the complexities of the real estate market.
