El Paso Industrial Figures Q2 2026

The market posted net absorption of 1.6 million sq. ft. in Q2 2026, a record high. Mid-year net absorption and gross absorption marked new highs as well. Although a large amount of new, vacant speculative space hit the market during the quarter, the vacancy rate declined due to very strong leasing and user sale activity. Vacancy declined by 30 basis points quarter-over-quarter and by 100 basis points year-over-year. Construction activity remains robust, with 6.6 million sq. ft. under construction across 20 projects.  There were over 1.9 million sq. ft. in new starts during the quarter. Deliveries totaled 1.5 million sq. ft. in Q2 2026, slightly above the 1.3 million sq. ft. delivered in Q1 2026. In Q2 2026, activity is characterized by several large transactions across the market. More than two-thirds of the quarters leasing and user sale activity was through transactions above 100,000 sq. ft.