Tenant Demand Outlook Scoreboard: Industries Driving Space Needs in 2026

5 Star Industrial Warehouse

2026 Top 10 Industries Driving CRE Demand (United States)

The table below ranks the leading industry sectors fueling commercial real estate (CRE) demand in Q1 2026. Rankings are based on leasing volume and net absorption (space occupied minus vacated) across office, industrial, and retail segments. Each industry is paired with a brief highlight of its space needs and trends:

Rank	Industry Sector	Q1 2026 Demand Drivers
1	Technology  (Tech & Software)	AI and cloud expansion spur major office deals; tech led 2024’s largest new leases, rebounding strongly after prior pullback.
2	Logistics & Distribution  (3PL & E-Commerce)	Third-party logistics (3PL) providers dominate warehouse leasing as retailers outsource fulfillment; Dallas–Ft. Worth alone saw 10+ MSF new leases in Q2 2025.
3	Manufacturing & Automotive  (Advanced Manufacturing, EV, Aerospace)	Reshoring of high-tech manufacturing and EV supply chains drives big build-to-suit projects; mega-deals from automakers and defense firms boost industrial absorption.
4	Retail & Consumer Goods  (Brick-and-Mortar Retailers)	Sunbelt population growth fuels store expansions despite e-commerce; DFW retail absorbed 791,000 SF in 2025, led by grocers and value retailers, keeping vacancy near record lows.
5	Finance & Insurance  (Banking, Investment, Insurance)	Wall Street South: Financial firms are locking in office space in business-friendly markets. Finance/insurance was the #2 office leasing industry of 2024 (4.9 MSF in top deals), with Dallas seeing major corporate relocations.
6	Professional & Business Services  (Consulting, Legal, Flex Space)	Consulting, law, and flexible workspace providers drive steady office demand. This sector jumped to #3 in big office leases for 2024 as companies seek talent hubs like Atlanta and Dallas for regional operations.
7	Healthcare & Life Sciences  (Medical Offices, Biotech R&D)	An aging population and medical innovation sustain healthcare real estate. Hospitals and clinics are expanding outpatient facilities, even as lab space markets rebalance from a boom to 27% vacancy in top clusters. Atlanta’s growing health-tech cluster underscores long-term potential.
8	Food & Beverage  (Cold Storage, Food Processing, Grocery)	Cold storage and food distribution remain hot. Grocers and foodservice suppliers are leasing new warehouses to strengthen supply chains, especially near metro hubs. Fast-casual restaurants and grocery-anchored centers are in expansion mode in high-growth suburb.
9	Energy & Utilities  (Oil & Gas, Renewables, Data Centers)	The energy sector’s rebound is translating into CRE demand: Houston’s Energy Corridor is posting large office leases as oil & gas firms grow, and renewable energy companies are scouting industrial sites. Power-hungry AI data centers are also proliferating, making power availability a top-tier issue in site selection.
10	Aerospace & Defense  (Aviation, Defense Contractors)	Defense contracts and aviation innovation fuel space needs. Aerospace manufacturers are investing in new production and R&D facilities (often with government incentives). In Dallas–Fort Worth, Lockheed Martin renewed a 455,000 SF campus lease through 2031 to support expanded F-35 jet production, reflecting this sector’s stable growth.

Table: 2026 Top 10 Industries for U.S. Commercial Real Estate Demand, ranked by leasing activity and net absorption. Each industry is a broad sector (not a specific NAICS code) encompassing related sub-sectors.

1. Technology: Tech Sector Rebounds with AI-Fueled Space Demand

Overview: The technology sector is once again a powerhouse in commercial real estate. After a brief slowdown, tech firms have resumed large-scale leasing, especially in prime office markets. In 2024, technology companies led the 100 largest U.S. office lease transactions with 29 major leases totaling 9.3 million sq. ft., up dramatically from the prior year. This resurgence – driven largely by expansions of AI, cloud computing, and data analytics companies – has carried into 2026 with robust momentum.

Key Drivers: A few factors are behind tech’s renewed appetite for space. First, the AI boom is prompting tech firms (from startups to giants) to secure high-quality offices and R&D facilities that can attract talent back on-site. Many AI and data-driven companies are expanding footprints to support innovation labs and collaborative teams. Second, cloud service providers and data center operators are racing to build out infrastructure. Massive data centers (though often owner-developed) are part of the tech real estate surge, with markets like Northern Virginia, Dallas, and Atlanta seeing heavy data center construction to support cloud and AI growth. The availability of power has even become a critical site selection factor due to this explosive data center demand.

Atlanta & Dallas Focus: Both Atlanta and Dallas are benefiting from tech sector growth. Atlanta has cultivated a fintech and digital media hub, attracting West Coast tech firms and startups to Midtown and Buckhead. Dallas–Fort Worth has emerged as a “Silicon Prairie” of sorts – major tech companies (from Uber to regional HQs of Facebook and Google) have recently inked significant leases in the DFW metro. With low taxes and deep talent pools, Dallas is a magnet for corporate tech expansions. Both metros also rank among top data center markets, underlining their strategic role in tech infrastructure.

Outlook: “Tenant demand 2026” for tech space looks strong. Even as some firms adopt hybrid work, leading tech employers are committing to larger, amenity-rich offices to lure employees back and spark innovation. Tech’s share of new leasing is expected to remain elevated through 2026, especially if economic conditions stabilize. Overall, technology’s expansion – particularly in AI, cloud, and fintech – is set to drive significant leasing volume and help absorb high-end office space in key markets. This positions tech firmly at #1 on the demand scoreboard.

2. Logistics & Distribution: 3PLs and E-Commerce Fuel Industrial Leasing

Overview: Coming in at #2 is Logistics & Distribution, which encompasses third-party logistics (3PL) providers, e-commerce distributors, and general freight and parcel delivery companies. This sector has been the dominant driver of industrial real estate demand in recent years, and 2026 is no exception. In the first half of 2025, 3PL firms signed the most big-ticket warehouse leases of any industry – 38 of the top 100 industrial leases, totaling 28.9 million sq. ft. Their share surged as retailers and manufacturers increasingly outsourced warehousing to logistics specialists. Traditional retail and wholesale players (big-box retailers, consumer product distributors) accounted for the second-largest chunk of major leases. Although pure-play e-commerce companies scaled back somewhat after the pandemic rush (their top 100 lease volume fell sharply from 2024), the broader logistics sector continues to expand at a remarkable clip.

Key Drivers: Several trends are underpinning this growth. E-commerce sales, while moderating from peak growth, remain elevated, keeping demand high for fulfillment centers and last-mile delivery hubs. 3PL providers are capitalizing on this by taking down huge blocks of space to service multiple clients’ supply chains. At the same time, companies are implementing “just-in-case” inventory strategies after recent supply disruptions, which means more warehouse space is needed to stockpile goods. Modern logistics buildings (with high ceilings, abundant docks, and freeway or rail access) are especially coveted. Even with economic headwinds, national industrial leasing hit 146 million sq. ft. in a single quarter (Q3 2025), the strongest pace since early 2024. Net absorption of industrial space doubled quarter-over-quarter to 38.2 million sq. ft. positive in Q3 2025, indicating that logistics tenants are quickly backfilling new supply.

Atlanta & Dallas Focus: Dallas–Fort Worth and Atlanta are superstars in the logistics arena. DFW, with its central location and interstate network, led the nation in industrial leasing – surpassing 10 million sq. ft. of new leases in Q2 2025 alone, on par with Chicago. A late-quarter surge of >500,000 sq. ft. big-box deals in Atlanta, Houston, and Dallas helped lift U.S. leasing totals. Atlanta, home to the nation’s busiest cargo airport and a major trucking nexus, saw its industrial demand rebound in late 2025 after a brief lull. Notable Atlanta leases by firms like GXO Logistics and DHL pushed quarterly leasing to 8.2 million sq. ft. in Q3 2025. Both metros benefit from strong infrastructure, workforce, and population growth fueling distribution needs. As a result, vacancy rates remain relatively low (Atlanta’s industrial vacancy dipped to 8.7% in late 2025 as absorption turned positive again). Each market also has massive construction pipelines to accommodate logistics demand, with DFW alone carrying 32 million sq. ft. under construction by Q4 2025.

Outlook: The logistics sector is expected to remain a stalwart demand driver through 2026. While new warehouse supply is catching up (national vacancies have inched up to around 7–8%), the consensus is that 3PLs, distributors, and retailers will continue to need modern space for ever-faster delivery cycles. In core hubs like Atlanta and Dallas, competition for state-of-the-art facilities near transport nodes is intense. Higher interest rates haven’t dented the fundamental need for supply chain efficiency. As one Cushman & Wakefield analyst noted, “demand for logistics space remains resilient,” with occupiers prioritizing supply chain agility and positioning for growth. All told, Logistics & Distribution is firmly entrenched near the top of the tenant demand scoreboard, second only to tech in its impact on U.S. real estate in 2026

3. Manufacturing & Automotive: Reshoring Boosts Industrial Footprints

Overview: Manufacturing and Automotive companies collectively rank #3 for space demand, reflecting a manufacturing renaissance underway in the United States. This broad category includes advanced manufacturing (such as electronics, semiconductors, and machinery), automotive and electric vehicle (EV) producers, aerospace and defense manufacturing, and related suppliers. While manufacturers often build specialized facilities, many are leasing or buying move-in-ready industrial space to accelerate expansion. The post-pandemic push to “reshore” or regionalize production has led to a wave of new factories, from EV battery plants in the Southeast to semiconductor fabs in Texas and Arizona. Each new facility can span millions of square feet, significantly impacting net absorption in those markets.

Key Drivers: Federal incentives and robust demand for goods are key drivers here. Legislation like the CHIPS Act and Inflation Reduction Act is spurring billions in domestic manufacturing investment (for chips, EV batteries, solar panels, etc.). At the same time, supply chain lessons are prompting companies to diversify production away from overseas dependencies. The result: increasing site selection activity for big industrial sites in the U.S. – often in smaller cities or suburbs where land is available. For example, large EV and battery plants (some owner-occupied, some leased) have popped up across the South, bringing supplier firms in their wake. Even beyond high-tech, sectors like building materials, machinery, and consumer products are expanding production capacity to meet consumer and infrastructure needs.

In 2025, manufacturing space demand contributed to industrial growth especially via build-to-suit projects. Nationally, build-to-suit deliveries climbed to over 30% of new industrial supply by mid-2025, as many of these were factories or specialized centers for single users. Markets with an advanced manufacturing presence (e.g., parts of the Midwest and Southeast) saw solid absorption from these projects. Dallas–Fort Worth’s industrial boom includes major manufacturing elements – for instance, Texas Instruments’ ongoing semiconductor campus expansion north of Dallas will add significant square footage (though owner-developed, it reflects the trend). Atlanta and Georgia have landed EV-related plants (Rivian’s planned EV factory east of Atlanta, and multiple battery factories) which, while under construction now, signal huge future occupancy.

Atlanta & Dallas Focus: Dallas–Fort Worth has a diverse manufacturing base – from aerospace components in Fort Worth (Lockheed Martin’s fighter jet production) to food processing and telecom equipment. The region’s pro-business environment and connectivity make it a top choice for corporate relocations that include manufacturing operations. Meanwhile, Georgia’s I-85 corridor south of Atlanta has attracted automotive investments (Kia’s assembly plant, numerous automotive suppliers) and is poised for more with the transition to EVs. Both Atlanta and Dallas also benefit from large aerospace/defense employers (e.g., Lockheed, Gulfstream in GA), which occupy sprawling campuses and often need ancillary office or warehouse space for contractors.

One recent notable deal: in October 2025, Lockheed Martin renewed a 455,000-sq.-ft. office lease in Fort Worth, the city’s largest office deal of the decade, to support its expanding F-35 production lines. Although Lockheed also put some excess space on sublease (reflecting hybrid work), the long-term renewal through 2031 kept 1,800 employees in place and underscored confidence in growth tied to a new $24 billion defense contract. Such commitments illustrate manufacturing and aerospace firms’ ongoing need for significant real estate even in the office sector (for engineering, HQ, and testing functions).

Outlook: The manufacturing revival is likely to continue driving CRE demand through 2026 and beyond. Site selectors and economic development organizations are actively courting manufacturers, given the high jobs multiplier and space requirements they bring. Many projects announced in 2024–2025 will turn into occupied facilities in 2026, boosting net absorption in markets from the Rust Belt to the Sun Belt. While not all manufacturing space demand shows up in brokerage tallies (since some facilities are owner-built), the impact on occupancy is real – vacant land is being converted into productive space. Look for automotive and electronics companies in particular to dominate new occupancy gains. The manufacturing sector’s expansion of U.S. footprints, from mega-plants to supplier logistics centers, firmly places it among the top industries for commercial real estate demand in 2026.

4. Retail & Consumer Goods: Brick-and-Mortar Expansion in the Sun Belt

Overview: Despite the rise of e-commerce, brick-and-mortar retail has proven resilient – and in some growing regions, it’s thriving. The Retail & Consumer Goods sector (encompassing physical store expansion by retailers, restaurants, and consumer service chains) ranks #4 on our demand scoreboard. Nationally, retail real estate fundamentals improved through 2025: vacancies hit multi-decade lows in many markets as new development stayed limited and tenants backfilled older spaces. By Q4 2025, U.S. retail vacancy averaged around 4-5%, and net absorption, while modest, was positive in many metros. Notably, Sun Belt markets like Dallas–Fort Worth led the nation in retail construction and absorption – indicating that population and income growth are translating into new store openings.

Key Drivers: A few industry groups are leading retail space demand. Grocery chains and discount retailers (think Aldi, Lidl, Dollar General) have been expanding aggressively, especially in underserved suburban and rural markets. Grocery-anchored shopping centers remain highly sought-after; developers in Texas and the Southeast can’t build them fast enough to keep up with new housing developments. For instance, DFW delivered over 7 million sq. ft. of new retail space in 2025 (12% of all U.S. retail additions) with 85% pre-leased, often to grocers or big-box stores. Another driver is the food & beverage and services segment – fast-casual restaurants, coffee chains, fitness studios, medical clinics, and other experiential retail tenants are taking smaller spaces in strip centers and urban street fronts. These are “internet-proof” categories focusing on consumer experience. In Atlanta, for example, demand has been strong for smaller footprints, driven by expanding concepts like Chipotle and boutique service brands. Finally, off-price and value apparel retailers (e.g. T.J.Maxx, Burlington) and certain specialty retailers have also been opening stores, lured by lower rents and attractive demographics in growth markets.

Atlanta & Dallas Focus: Dallas–Fort Worth’s retail market is a case study in robust tenant demand. DFW closed 2025 with 791,000 sq. ft. of positive net absorption, despite a massive 7.8 million sq. ft. construction pipeline – signaling that new stores are being readily absorbed. Key growth areas like Frisco, Plano, and McKinney (north of Dallas) are seeing intense competition among retailers for space near new residential communities. Rents have been pushed above $40/SF in prime suburban corridors as grocers (e.g., H-E-B’s entry into DFW) and popular chains secure sites. Atlanta’s retail scene also remains “historically tight,” with vacancy at just 4.1%. In late 2025 Atlanta did register a rare -1.7 million SF absorption dip due to a few national retailer bankruptcies (highlighting challenges in sectors like department stores). However, excluding big-box closures, Atlanta retail demand outperformed other property types, buoyed by rapid in-migration, high incomes in suburbs, and limited new supply. Essentially, small-format retailers are filling spaces quickly – Atlanta’s average shop space leases in under 6 months on market. Both metros illustrate that population and job growth = retail expansion.

Outlook: The commercial real estate outlook for retail in 2026 is cautiously optimistic, especially in high-growth metros. While e-commerce will keep the pressure on certain categories (e.g., bookstores, electronics), many retailers have adjusted their strategies (omni-channel models, smaller store formats, focus on customer experience). Site selectors for retailers are zeroing in on markets like Atlanta and Dallas where new households and rising incomes promise solid sales. We anticipate continued demand from grocery chains, discounters, home improvement stores, and fast food/coffee in expanding neighborhoods. Moreover, the redevelopment of older retail (think dead malls turning into mixed-use) could add to absorption as new retail concepts take space in those projects. In sum, Retail & Consumer Goods occupiers are again contributing meaningfully to space absorption – a welcome trend putting this sector in the Top 5 of our demand scoreboard.

5. Finance & Insurance: Financial Firms Bet on Business-Friendly Markets

Overview: Finance & Insurance firms – including banks, investment managers, insurers, and fintech companies – rank #5 for CRE demand. This sector has long been a major occupier of office space, particularly in gateway cities. What’s new in 2025–2026 is where that demand is occurring: many financial companies are relocating or expanding in lower-cost, high-growth markets (often Sun Belt metros) even as they optimize footprints in traditional finance hubs. Nationwide, the finance sector showed its strength in 2024 by accounting for the second-highest square footage among the top 100 office leases (about 4.9 million sq. ft. across 15 big leases). This included several mega-deals outside NYC, such as large regional hubs for banks and credit card companies. As we move into 2026, finance remains a steady if not spectacular driver of tenant demand, adapting to hybrid work with a “flight to quality” approach – i.e. concentrating in prime buildings that entice employees.

Key Drivers: Industry consolidation and decentralization are both at play. On one hand, banks and insurers have been merging or streamlining operations, which can reduce some office footprints. On the other hand, many are growing in specific areas like technology development (fintech) and regional customer service centers. The result: back-office and tech operations of financial firms are often shifting to cities like Dallas, Charlotte, or Atlanta, where costs are lower and talent is plentiful. For instance, Dallas has attracted major hubs for JPMorgan, Goldman Sachs (which is building a large campus), Charles Schwab, and others in recent years. These moves involve leasing substantial new office space and often constructing custom campuses. Atlanta similarly has a burgeoning fintech scene (home to Global Payments, ICE/New York Stock Exchange, and numerous payment-processing firms) driving office occupancy in Midtown and Perimeter submarkets. Another driver is the insurance sector’s stability – many insurers are expanding their sales networks and need more regional offices and training facilities, often in suburban markets.

Atlanta & Dallas Focus: It’s no coincidence that Dallas–Fort Worth and Atlanta frequently top lists of cities benefiting from finance and professional services growth. DFW, sometimes dubbed “Wall Street of the South,” boasts a pro-business climate and central U.S. location. The metro has seen financial giants relocate thousands of jobs there (e.g., Schwab to Westlake, Goldman’s new Dallas campus) in the past few years, occupying newly built office space. In Atlanta, Fintech has been a big story – companies like NCR, BlackRock, and Visa have expanded or opened tech-forward offices, leveraging Atlanta’s tech talent and universities. Both cities also have major insurance company hubs (State Farm’s mega-campus in Atlanta, several large insurers in DFW). This influx of financial and insurance operations has kept leasing activity resilient. For example, finance and insurance accounted for a healthy share of big leases in 2024 (second only to tech in total square footage), showing these firms are still committing to office space albeit more selectively.

Outlook: The commercial real estate outlook for finance & insurance firms is one of selective expansion. As the economic cycle evolves, banks and investors may remain cautious, but wealth management and fintech divisions are projected to grow, fueling office demand. Additionally, with interest rates stabilizing, banks could increase hiring in loan and wealth departments, requiring more space. Expect site selectors to keep targeting business-friendly metros for new offices – we may see more “north-shoring” from expensive coastal cities to places like Dallas, Atlanta, Nashville, or Tampa for certain functions. Overall, while the finance sector isn’t grabbing headlines with explosive growth, it provides a steady drumbeat of leasing that underpins many downtown and suburban office markets. Its solid ranking on our Top 10 list reflects the enduring need for collaborative space in this industry, even as remote work is balanced with in-person client service and teamwork.

6. Professional & Business Services: Consulting, Law & Flex Space on the Move

Overview: Professional & Business Services is a broad sector comprising consulting firms, accounting and law firms, advertising/marketing agencies, architectural and engineering companies, and even coworking/flex space operators. In aggregate, this sector is #6 in our ranking for CRE demand. In 2024, it made a notable leap – professional and business services tenants were the third-largest group among top office leases, with 13 out of the top 100 deals totaling 3.5 million sq. ft. (up sharply from the year before). This trend signals that after a pandemic dip, many professional service firms are expanding or upgrading their space to accommodate growth and entice employees back. Additionally, the collapse or shrinkage of some national coworking operators (like WeWork) has opened opportunities for new flex-space providers to lease space and meet the evolving demand for flexible offices.

Key Drivers: A few dynamics are driving space needs here. Consulting and advisory firms (big names and boutique alike) have been in growth mode due to high demand for corporate advisory, digital transformation, and M&A services. These firms typically occupy high-end offices in multiple major markets. As their headcounts rise, they often take additional floors or relocate to better buildings. Law firms have similarly been performing well financially and are selectively expanding into newer, more efficient offices (often downsizing per lawyer but adding collaborative areas). Many law firms are consolidating multiple locations or upgrading to trophy towers, which can lead to new leases in key cities. Meanwhile, the Big Four accounting firms and other business services groups (HR, staffing companies, etc.) are hiring in certain divisions (e.g., consulting, tax advisory for Big Four) which also spurs regional office growth.

Another component is the flexible office space sector. With WeWork’s retrenchment, smaller coworking operators and landlords’ own flex offerings are taking up slack – leasing portions of buildings to offer short-term suites. This still counts as absorption by the flex space “industry.” Markets like Dallas and Atlanta have seen regional coworking brands and national operators like Industrious or Regus backfill space, which contributes to positive absorption.

Atlanta & Dallas Focus: Atlanta and Dallas both host significant clusters of professional service firms. Atlanta is an established hub for consulting in the South (all Big Four firms have a major presence, as do top consultancies like Accenture, Bain, etc.), and it’s home to large law firm offices serving the Southeast. Atlanta’s attractive cost relative to DC or NYC has drawn more legal and consulting work there, maintaining steady leasing. Dallas–Fort Worth has likewise become a magnet for corporate offices of accounting and consulting firms — for instance, PwC and Deloitte have sizable operations in Dallas, and many law firms headquartered elsewhere have expanded Dallas offices to serve Texas’s booming economy. In Q3 2025, DFW’s office market showed signs of recovery, and analysts noted top industries in demand included Information/Tech and Professional Services, with flight-to-quality driving those firms to premium spaces. That jibes with the broader trend: in both metros, high-end Class A buildings in live-work-play environments are attracting professional service tenants who want to impress clients and staff.

Outlook: The professional & business services sector should continue to underpin office demand in 2026. While automation and remote work pose some challenges (e.g., some routine legal/consulting work can be done remotely or with AI assistance), most firms in this sector value proximity to clients and collaboration. We expect moderate expansion as the economy grows: consulting firms ramp up for new projects, accounting firms prepare for evolving regulations, and law firms handle steady deal/case flow. Importantly, as other sectors (tech, finance, healthcare, etc.) grow in markets like Atlanta and Dallas, business service providers follow to support them – creating a virtuous cycle of demand. Coworking and flex office providers will also likely absorb more space as companies seek turnkey flexible options. All told, the diversified nature of this sector and its link to broad economic activity earn it a secure spot among the top CRE demand drivers this quarter.

7. Healthcare & Life Sciences: Medical Needs Endure Amid Evolving Lab Market

Overview: At #7, Healthcare & Life Sciences represents the combined demand from healthcare providers (hospitals, clinics, medical office tenants) and life science companies (biotech, pharmaceutical, medical research users). These two are often grouped due to their overlap in serving health needs, though their real estate types differ (medical offices vs. labs). Healthcare has historically been a steady, recession-resistant source of real estate demand – medical office buildings (MOBs) boast high occupancy nationally as healthcare systems expand outpatient care. Life sciences was a superstar sector during 2020–2022, with companies gobbling up lab space, but it hit headwinds in 2023–2025 due to funding slowdowns. As of early 2026, healthcare continues to drive space needs for clinics and specialized facilities, while the lab market works through a supply glut in top clusters.

Key Drivers – Healthcare: Demographic trends (aging population, population growth in Sun Belt) and the shift to outpatient care are pushing healthcare providers to lease more space off-campus. Large hospital systems are building or leasing urgent care centers, surgery centers, imaging facilities, and medical group offices in communities to reach patients conveniently. For example, many retail centers now have dialysis clinics or orthopedic urgent care as tenants – a trend of “medtail” (medical retail). Healthcare employment remains strong; the sector added ~40,000 jobs per month in 2025, translating to more demand for medical offices. Moreover, life expectancy and chronic disease management ensure steady need for healthcare services and thus space. The medical office vacancy rate is low (often under 8% in major markets), and rents have inched up, reflecting this stable demand.

Key Drivers – Life Sciences: For life science real estate (labs, R&D space), the driver is innovation in biotech and pharma, but its demand is currently muted by external factors. Venture capital funding for biotech in 2025 was on pace to be the lowest since pre-pandemic, and the NIH (federal research) budget faced cuts – both crucial to startup formation and growth. Combined with a construction boom that delivered millions of sq. ft. of new lab space in Boston, San Diego, and the Bay Area, the result was a spike in lab vacancies to ~27% in those leading markets. This oversupply means life science companies have abundant options and can be picky, slowing net absorption in 2024–2025. However, the long-term trend is still positive: breakthroughs in mRNA, gene therapy, and medical technology will eventually translate into new companies and expansions that require lab and manufacturing space (often in emerging clusters like Raleigh-Durham, Houston, or Atlanta, not just the big three). Already we see some life science growth in secondary markets where costs are lower and talent is fostered by universities.

Atlanta & Dallas Focus: Atlanta is not a top-tier life science market yet, but it has growing biomedical activity (anchored by CDC and universities like Emory/Georgia Tech). The state is investing in life science hubs; we anticipate more demand for lab space in Atlanta’s Midtown and suburban innovation parks over time. In healthcare, Atlanta’s major health systems (Piedmont, Emory, Wellstar) are among those expanding with new outpatient clinics in high-growth suburbs, keeping medical office builders busy. Dallas–Fort Worth, meanwhile, has one of the nation’s largest healthcare workforces (Baylor Scott & White, Texas Health, and UT Southwestern are huge presence). DFW’s population boom has spurred new hospitals and dozens of neighborhood medical centers, contributing to strong medical office absorption (vacancy in DFW MOBs is routinely in single digits). Dallas also has a small but growing life science footprint in the Dallas Medical District and Plano, though Houston eclipses it in Texas for biotech research. Both Atlanta and Dallas benefit from being lower-cost alternatives for healthcare companies (such as insurance or health IT firms) and could see more biotech manufacturing (like Moderna’s newly announced mRNA facility in Atlanta’s area, hypothetical example) as life science firms seek Sun Belt production sites.

Outlook: Healthcare & Life Sciences real estate demand in 2026 will likely be a story of steady healthcare growth and a recovering life science segment. Medical office absorption is expected to remain solid – investors and chambers of commerce see MOBs as stable, and providers will keep leasing space to meet patient needs (especially as baby boomers require more care). On the life science side, experts expect the market to find equilibrium later in 2026: the torrent of new supply will slow, and by then, new drug discoveries (perhaps in oncology, Alzheimer’s, etc.) and an improving funding climate could spark another wave of lab leasing. Recall that the life science sector’s fundamentals are cyclical but historically innovations drive real estate – every new therapy that advances into trials often means a startup expanding from an incubator to a 50,000 SF lab, for instance. As JLL noted, this is the first cycle in memory where all headwinds hit at once for life sciences, implying that the next phase could see multiple tailwinds aligning. In summary, healthcare will continue to quietly absorb space, and life sciences, though currently facing challenges, remains an essential long-term demand driver (keeping this combined sector in the Top 10).

8. Food & Beverage: Cold Storage and Production Space in High Demand

Overview: The Food & Beverage industry – including food processing, beverage production, cold storage logistics, grocery distribution, and restaurant chains – comes in at #8 on our demand scoreboard. This sector might fly under the radar, but it is a significant occupier of both industrial and retail space. In the industrial top leases of 2025, food & beverage users contributed a notable share (around 8 million sq. ft. among the top 100 deals), placing just behind categories like 3PL and retail in big-box leasing volume. The reason: feeding America is big business, and it requires extensive real estate, from giant refrigerated warehouses to local supermarkets and even ghost kitchens.

Key Drivers: Supply chain modernization and consumer preferences are driving this sector’s space needs. Grocery distributors and foodservice companies are expanding their cold storage capacity to ensure fresh and frozen goods can be delivered efficiently. The pandemic highlighted the need for robust cold chains (for everything from ice cream to vaccines), leading to a surge in construction of refrigerated warehouses. These facilities are highly specialized (with sub-zero freezers, insulated docks) and often quickly absorbed upon completion due to undersupply. Food logistics firms and grocery chains often lease these properties in proximity to population centers to cut delivery times.

Additionally, food processing and packaging companies are growing – many are re-shoring operations due to supply chain resilience efforts. For example, snack and beverage companies have opened new plants in the Southeast and Texas to be closer to raw materials and consumers. These plants, whether leased or owned, contribute to local industrial absorption and often spawn ancillary warehouse needs for packaging and ingredients (note that “paper/packaging” and “pet food/supplies” were also listed among top industrial leasing industries, indicating related segments).

On the retail side, restaurant chains (fast food, fast casual, coffee) continue to expand their footprint. Even as delivery grows, having physical kitchens and storefronts in key trade areas is critical. Quick-serve restaurants (QSRs) like Chick-fil-A, Chipotle, Starbucks, etc., are aggressively opening new locations (often freestanding or in shopping centers) across high-growth markets – indeed, Atlanta’s new construction list in late 2025 included projects built-to-suit for Chick-fil-A and Starbucks. These small-footprint deals add up in absorption over time. Grocery stores are another retail component: markets like DFW and Atlanta have seen new grocery entrants (e.g., H-E-B in DFW, Lidl in GA) building or leasing stores, which can be 50k+ SF each, significantly contributing to retail demand.

Atlanta & Dallas Focus: Dallas–Fort Worth is a national leader in the food & beverage space. The region’s central location and transportation network make it ideal for large food distribution centers (several national grocery chains run regional warehouses in Dallas). DFW also has major food manufacturing – e.g., Frito-Lay (PepsiCo) is based in Plano, with extensive facilities. The strong absorption in DFW’s industrial market includes deals like large cold storage leases to service the booming population (the warm climate also necessitates more cold storage for produce and frozen goods). On the retail front, as mentioned, grocery-anchored development is rampant in DFW – with many mixed-use projects centered around new supermarkets and food halls, indicating how food retail drives new construction. Atlanta similarly benefits from being a logistics nexus for the Southeast’s food distribution. The Atlanta State Farmers Market and numerous foodservice distributors occupy millions of sq. ft. around the I-285 perimeter. Atlanta’s booming film industry has even boosted catering and specialty food demand (a niche, but notable in aggregate). Restaurant expansion in Atlanta is also notable – from local chains to big names, the race to grab sites near new residential growth is on. In summary, both metros see high demand for any real estate that touches food – be it a new Kroger-anchored center (Atlanta delivered one in 2024) or a mega distribution facility for a national grocer.

Outlook: The outlook for the Food & Beverage sector in CRE is robust. Food is essential and relatively insulated from tech disruptors – people will always need to eat and drink, and while e-commerce delivers some groceries, much of the supply chain still relies on physical locations. We anticipate continued expansion of cold storage (often cited as an “undersupplied” property type) as online grocery and direct-to-consumer meal services grow. Also, the shift to healthier, fresher foods means more regional produce distribution centers and specialty food production sites emerging (for example, indoor farming companies leasing warehouse space). On the retail side, dining and experiential food concepts will be crucial in drawing shoppers, so restaurants are likely to remain a growth category in retail leasing. Overall, Food & Beverage’s broad presence across industrial and retail real estate secures its place in the Top 10 industries for tenant demand in 2026. It’s a sector with “appetite” for space that shows no sign of dieting.

9. Energy & Utilities: Powering Office and Industrial Growth

Overview: The Energy & Utilities sector – which includes oil & gas companies, renewable energy firms, electric utilities, and supporting services – is #9 on our list of demand drivers. Traditionally, energy companies have had a heavy presence in specific markets like Houston (for oil & gas) and various regional hubs for utilities. In 2025–2026, this sector is contributing to CRE demand in a couple of ways. Oil and gas firms, flush with cash from the oil price rebound of recent years, are expanding and upgrading offices (particularly in Texas). At the same time, the renewable energy boom (solar, wind, battery storage) is spawning new manufacturing and logistics requirements, from solar panel factories to warehouses for wind turbine components. Lastly, the infrastructure underpinning the digital economy – electric utilities and power providers – are expanding facilities to meet growth, and this includes everything from new grid operation centers to substations (the latter not leased in a traditional sense, but utilities do sometimes lease office space for admin and training).

Key Drivers: The rebound in fossil fuel industries in 2022–2023 (with oil prices climbing) led many energy firms to revisit hiring and space needs. While some have embraced hybrid work, others see value in collaborative office culture, especially for engineering teams. This has led to positive office absorption in energy-centric markets: Houston’s office market, for instance, saw consecutive quarters of positive absorption in 2025 after years of downturn, thanks in part to energy companies taking or renewing space. A notable stat: Houston recorded ~993,000 sq. ft. of net absorption year-to-date by Q3 2025, breaking a streak of negative absorption since 2019, with the Energy Corridor submarket among those leading the gains. This suggests energy firms are again making real estate commitments.

On the renewables side, huge investments are underway. Solar panel manufacturers, battery makers, and EV charging companies are establishing production facilities, often backed by federal incentives. For instance, several solar equipment factories were announced in the Southeast (First Solar in Alabama, Qcells expansion in Georgia). These facilities, typically owner-occupied, still count toward industrial occupancy and often involve ancillary leased warehouses for parts and distribution. Wind energy has large supply chain needs too, though much is centered in the Midwest corridor. And with the push for grid resilience, utilities are building new training centers and leasing more office for expansion of their workforce.

A unique angle is how energy intersects with tech: the proliferation of data centers (to power cloud/AI) heavily depends on utility capacity. Regions rich in cheap power (like parts of Georgia, Texas, Virginia) are seeing a dual benefit – more data centers (which might lease from colocation providers) and more utility company presence to service them. This indirectly means more commercial real estate demand (e.g., an electric utility in Georgia might lease additional office or industrial yard space as it grows to support a new Microsoft data center cluster).

Atlanta & Dallas Focus: Dallas–Fort Worth is not primarily an oil town (that’s Houston), but it does host significant energy corporations’ headquarters – notably ExxonMobil’s main HQ campus is just outside Dallas in Irving (opened in 2023) housing thousands of employees. Also, pipeline companies and engineering firms related to energy often have Dallas offices. Thus DFW’s office market gets a slice of energy demand. Additionally, Texas-wide, the oilfield services and pipeline segments often base operations in Dallas due to the central location. On the utilities front, Dallas-based utilities like Oncor (the electric utility) and various renewable energy project developers are active tenants. Atlanta, home to Southern Company (one of the largest U.S. utilities), similarly sees stable office use from its energy sector. Southern Co. has expanded into new office space for tech and R&D units in recent years. Georgia’s aggressive move into renewables (like large solar farms) also means companies setting up regional offices in Atlanta to manage Southeast projects. For example, an international solar firm might lease 20,000 SF in Atlanta as a regional HQ for U.S. operations.

One should also note the economic ripple effect: energy booms drive other sectors (housing, retail in Texas, etc.), indirectly boosting CRE demand across the board. Specifically, Houston’s improving office metrics were cited as a sign of energy’s positive impact – with large leases by firms like Enbridge and others in 2025.

Outlook: The Energy & Utilities sector is poised to continue its steady demand. Oil prices as of 2026 are stable, and energy firms are generally profitable, which historically correlates with real estate expansion or upgrades. We foresee Houston and other energy hubs further recovering office occupancy as companies finalize new leases (already, one of 2025’s largest office renewals was by an energy engineering firm in Houston’s Energy Corridor). On the industrial side, if oilfield equipment manufacturing ticks up, places like the Gulf Coast and West Texas could see more industrial leasing. More globally, the pivot to clean energy is space-intensive: expect wind turbine assembly plants, battery gigafactories, and solar component warehouses to keep sprouting in the Midwest, South, and Texas. Another nuanced driver: nuclear and utility grid projects. The push for grid modernization might lead utilities to lease big training or storage facilities (often overlooked as demand sources). Overall, while not as flashy as tech or logistics, Energy & Utilities remains a vital and geographically concentrated source of CRE demand, securing it a spot in our Top 10.

10. Aerospace & Defense: Soaring Space Needs for Defense Contractors

Overview: Rounding out our Top 10 is Aerospace & Defense, a sector that straddles advanced manufacturing, R&D, and government contracting. Major defense contractors (Lockheed Martin, Boeing, Northrop Grumman, Raytheon, etc.), aerospace firms (from commercial space startups to aircraft manufacturers), and their extensive supply chains require significant real estate. These companies utilize large manufacturing plants, testing facilities, engineering offices, and logistics centers. In the mid-2020s, heightened geopolitical tensions and increased defense spending (the U.S. defense budget has been on the rise) are translating into expanded operations for many defense contractors. Additionally, the commercialization of space (SpaceX, Blue Origin and numerous smaller companies) is an emerging driver for industrial real estate in certain regions (e.g., Space Coast of Florida, Texas, Alabama). Aerospace & Defense is a niche but impactful contributor to CRE demand – often making the difference in smaller markets where a single project can add a million sq. ft. of occupancy.

Key Drivers: Government contracts and technological innovation are the primary drivers. When a company wins a big contract – say to build fighter jets, satellites, or missile systems – it usually needs to ramp up production, which can mean expanding existing facilities or acquiring new ones. For example, Lockheed Martin’s F-35 program has led to expansions in Fort Worth, TX and supplier sites nationwide. The award of the B-21 Raider bomber to Northrop is spurring work in Palmdale, CA and Melbourne, FL, including real estate development for production and engineering. At the same time, aerospace technology (like autonomous drones, urban air mobility vehicles, and commercial rockets) has spawned dozens of startups and mid-sized firms, many clustering around aerospace hubs and requiring manufacturing/R&D space. Markets such as Los Angeles (space tech in El Segundo), Denver, Huntsville, and Cape Canaveral are seeing upticks in demand from these players.

Another factor: re-shoring of defense supply chains. The Department of Defense has encouraged bringing more of the defense industrial base onshore for security reasons. This can lead to new factories for components that might’ve been made abroad, further adding to industrial demand in the U.S. Moreover, defense contractors, flush with cash from government funding, are investing in modernizing their campuses – which sometimes means new leases in more modern office buildings for non-classified administrative functions, or developing state-of-the-art R&D labs.

Atlanta & Dallas Focus: Dallas–Fort Worth is a significant aerospace hub, primarily due to Lockheed Martin’s massive presence in Fort Worth (home of the F-35 Lightning II production). That campus alone is millions of square feet and continues to grow with each new order of jets. As noted earlier, in 2025 Lockheed renewed 455,000 sq. ft. of office space in north Fort Worth, ensuring capacity for its engineering and program management staff through 2031 as F-35 production expands. Additionally, DFW hosts Bell Helicopter, Boeing’s services division, and a host of suppliers, all of which occupy significant industrial parks and office complexes, especially around the AllianceTexas area (which has an aviation focus). Atlanta is less of a defense manufacturing center, but it is a major Air Force logistics center (nearby Robins AFB) and has a growing cyber defense and aerospace IT segment (thanks to companies like Boeing opening IT hubs in Atlanta). Also, Gulfstream Aerospace is in Savannah, GA – close enough that some suppliers and contractors have Atlanta offices. Georgia’s universities also crank out aerospace engineers, attracting companies to set up design centers in the Atlanta region.

An often unsung element: maintenance, repair, and overhaul (MRO) facilities for aircraft. Both Texas and Georgia have airports where MRO companies lease large hangars (DFW has several at Alliance Airport; Georgia has Delta TechOps in Atlanta). These contribute to industrial real estate use under the aerospace umbrella.

Outlook: The aerospace & defense sector is expected to maintain or increase its real estate footprint in 2026. With global tensions not abating, the U.S. defense budget is robust, meaning contractors will stay busy and likely need more space for new programs (for instance, the development of next-gen hypersonic missiles or space defense systems could require new testing facilities). The commercial aerospace side is also recovering strongly from the pandemic – Boeing and Airbus are ramping up jet production, which cascades to suppliers leasing more space for parts production. And the space economy continues to grow, with projects like NASA’s Artemis program involving many private contractors (some expanding facilities to build lunar landers, etc.). Site-wise, much of the action will be in traditional aerospace corridors (Dallas–Fort Worth; Southern California; Huntsville, AL; the Space Coast; St. Louis; Washington state) but also some emerging locations eyeing aerospace investment.

For communities, landing an aerospace project can be a game-changer – these tend to be “backlink-worthy” wins for economic development, given the high salaries and big facilities. We anticipate EDOs and chambers will remain keenly interested in attracting such projects (often offering incentives and specialized infrastructure). In sum, while Aerospace & Defense may not top the charts in pure square footage compared to logistics or tech, its strategic expansions and consistent growth earn it a spot among the top ten industries driving space needs as we kick off 2026.

Conclusion

As Q1 2026 unfolds, the commercial real estate landscape is being shaped by these ten industries in significant ways. Each sector – from the high-flying tech and aerospace realms to the down-to-earth food distribution and healthcare fields – contributes a crucial piece of the demand puzzle. Markets like Atlanta and Dallas illustrate how diverse industries collectively fuel growth: tech and finance fill premier offices, logistics and manufacturing absorb sprawling industrial parks, while retail, healthcare, and others round out a vibrant economy. For economic developers, site selectors, and business leaders, understanding this Tenant Demand Outlook Scoreboard is key to strategizing for the year ahead. With macroeconomic drivers such as AI innovation, supply chain reconfiguration, demographic shifts, and energy transitions all in play, 2026 promises to be a dynamic year for CRE. The sectors topping our list are poised to lead the charge in space acquisition, and their performance will be critical in determining the overall commercial real estate outlook in 2026.

Sources: 

The insights and data in this article are drawn from up-to-date market research and reports, including CBRE’s analysis of 2024’s largest leases, Cushman & Wakefield’s 2025 industrial trends, JLL’s market statistics, and local market reports for Atlanta and Dallas, among others. These references underscore the quantitative foundation behind each sector’s ranking and provide context for the trends discussed.