U.S. warehouse utilization hit 69.4% in June 2026 — its highest since September 2022 — while the capacity index fell to 47.5, signaling contraction. Driven by tariff-related inventory front-loading, the Logistics Managers’ Index rose to 71.1, its strongest reading since March 2022. Real estate data confirms structural supply constraints: new warehouse deliveries are projected at just 190 million sq ft in 2026 — 20% below pre-pandemic averages — while net absorption is expected near 200 million sq ft. National vacancy sits at 6.7%, but scarcity is already emerging in key markets. Rents turned positive in Q1 2026, the first increase since 2023.
According to www.inboundlogistics.com, U.S. warehouse utilization climbed 6.5 points to 69.4 in June 2026 — its highest level since September 2022 — while the warehouse capacity index slipped 3.0 points to 47.5, falling back into contraction territory.
Logistics Managers’ Index Surges to 71.1
The Logistics Managers’ Index (LMI), a monthly survey of logistics executives covering inventory, warehousing, and transportation conditions, registered 71.1 for June 2026 — up 1.6 points from May and the first reading above 70 since March 2022. The index uses a 0–100 scale, where values above 50 indicate expansion and those above 70 signal significant expansion.
The LMI report attributes this surge directly to retailers “rushing inventories forward to avoid tariffs,” with many bringing in Q4 holiday goods ahead of schedule to pre-empt new U.S. duties expected in late July 2026. This tariff-driven front-loading has flooded the warehouse network with excess stock — pushing inventory levels up 5.7 points to 60.5, identified by the report as the primary driver of June’s spike.
Transportation and Warehousing Metrics Diverge
While warehousing utilization rose to 69.4, transportation utilization surged even higher — climbing 5.2 points to 74.7, marking an eight-year high. In contrast, warehouse capacity contracted: the index fell to 47.5, down 5.1 points from two years ago and flat year-over-year.
Concurrently, warehousing prices increased 5.5 points year-over-year and 9.3 points compared to 2024. LMI respondents forecast further tightening, projecting warehousing utilization will rise to 72.5 in the coming months.
Real Estate Data Confirms Structural Shortfall
Commercial real estate data corroborates the LMI’s findings, pointing to a supply-side shortfall rather than transient demand pressure. CBRE’s Q1 2026 industrial report shows leasing activity reached 249.8 million square feet, up 14% year-over-year — putting it on pace for a record year. Net absorption rebounded to 43.1 million square feet, but construction completions slowed to 55.4 million square feet.
Prologis’ May 2026 research projects new warehouse deliveries of roughly 190 million square feet for the full year — the lowest level in a decade and approximately 20% below the pre-pandemic average. Meanwhile, Prologis forecasts full-year net absorption near 200 million square feet, up from 2025. National industrial vacancy stands at 6.7%, and rents turned positive in Q1 2026 — the first increase since 2023.
Strategic Implications for Shippers
Industry-wide warehouse utilization remains around 84%, still below the long-term average — yet scarcity is already “emerging in select locations and building types,” per Prologis. This localized tightness explains why the LMI’s warehouse capacity index dipped below 50 despite national vacancy figures appearing relatively benign.
The convergence of LMI and real estate data suggests sustained underbuilding over several years. With new supply lagging significantly behind accelerating demand, shippers face narrowing negotiating windows. Contracts signed a year ago were priced before this run-up; rent growth turning positive in Q1 signals that renewals this year are occurring at the bottom of the rent cycle. As demand continues outpacing supply, locking in space and rates now is emerging as the most pragmatic strategy.
Source: inboundlogistics.com
Compiled from international media by the SCI.AI editorial team.
