Warehouse vacancy over 7%; CPG market continues to grow

U.S. warehouse vacancy rate reached 7.1% in Q2 2025, up from 6.9% in the previous quarter and 6.1% a year earlier, according to the Wall Street Journal. This is the first time inventory availability has exceeded 7% since 2014.

-Subleased space hit a record 225 million square feet in Q2, growing 25% year-over-year, as businesses leaned toward using existing capacity rather than signing new leases.
-Construction deliveries slowed sharply: only 72 million square feet of new warehouse space completed in Q2, a 45% decline from Q2 2024.
-Despite rising availability, net asking rents edged up to $10.12/sq ft, an approximate 3% annual increase, supported by longer-term lease agreements.

What does this mean for brands as the market becomes oversupplied? Companies are increasingly using sublease inventory rather than committing to new, long-term leases amidst tariff and trade policy uncertainty. Rents are staying firm, likely because warehouse leases are long term at 3, 5, or even 10 years. This will keep rates stead but cheaper deals could start to pop up, and if vacancy keeps increasing the market could be cheaper as a whole over the next 2 to 6 years.

The Consumer Packaged Goods (CPG) market is projected to grow to $4.2 trillion dollars in 2030 according to Markets and Markets, from $3.5 trillion in 2025. This includes everyday goods such as snacks, personal care, household items, and healthcare products.

Food & beverages hold a dominant share in the CPG market—driven by urbanization, changing dietary patterns, demand for convenience, and growth in functional, organic, and low-calorie products.

E‑commerce is emerging as a major growth driver in the CPG sector. Increasing online penetration, digital payments infrastructure, and consumer preference for convenience are pushing brands to invest in online sales channels.

Whether online or in brick and mortar, the CPG sector continues to increase.