The U.S. industrial real estate market remains resilient despite tariffs and business volatility. Growth in e-commerce continues to support demand, with robust leasing at high-quality, tech-enabled properties. Declining supply is expected to further strengthen prospects for industrial REITs.

These supportive fundamentals bring three industrial REITs into focus— Prologis Inc. (PLD Quick QuotePLD - Free Report) , STAG Industrial (STAG Quick QuoteSTAG - Free Report) and Industrial Logistics Properties Trust (ILPT Quick QuoteILPT - Free Report) . Before assessing the fundamentals of these three industrial REITs, it is essential to understand the industry backdrop that supports them.

Factors Underpinning the Demand for US Industrial REITs

With the e-commerce wave spearheading across boundaries, the industrial real estate asset category has grabbed headlines and continues to play a pivotal role, transforming the way consumers shop and receive their goods. Companies are making immense efforts to improve supply-chain efficiencies, especially through the integration of artificial intelligence (AI).  This is propelling demand for logistics infrastructure and efficient distribution networks. Moreover, the strong consumer spending is further accentuating this demand.

In addition, amid falling supply, demand is increasingly concentrated in high-quality assets offering modern amenities and advanced infrastructure. Build-to-suit developments are gaining traction as occupiers seek customized, efficient facilities, often tailored to automation and logistics needs. This trend is expected to widen the performance gap between new and older properties, as legacy spaces struggle to compete, leading to higher vacancy rates and slower leasing in outdated stock. As per the CBRE mid-year US real estate outlook, the vacancy rate is projected to reach 7% by year-end and peak in mid-2026.

While tariffs have dampened import volumes in the near term, this softness is likely to persist as tenants reassess sourcing strategies and reconfigure supply chains to manage costs and risks. However, the ongoing shift toward indigenous and near-shore production is expected to drive sustained demand for domestic manufacturing, warehousing and distribution space. Over the longer term, these structural changes should support stable occupancy, new development activity and a positive outlook for the industrial real estate market.

Per the Cushman & Wakefield Industrial_Logistics Investor Outlook Fall Winter 2025, the U.S. industrial net absorption in the third quarter improved 30% quarter over quarter and 33% year over year. Asking rent growth, though decelerated, remained positive. With demand and supply rebalancing in 2026, the same is estimated to bounce back toward the 3-4% range.

Lastly, industrial developers are increasingly diversifying into data centers. The data center industry is currently experiencing significant growth, driven by the demands of the evolving needs of today’s digital economy. This shift will invigorate the rentals and occupancy levelsfor industrial assets.

3 Industrial REITs to Buy Now

Prologis Inc.: This REIT provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers’ products.

Prologis’ strategic buyouts and development activities appear promising. Its new and renewal leases assure steady revenues. Prologis has a high number of build-to-suit development projects. Its scale drives efficiency, and a solid balance sheet strength aids its growth endeavors. The company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category.

Over the past month, the Zacks Consensus Estimate for the 2026 FFO per share has witnessed a marginal upward revision to $6.09. This suggests 4.9% growth year over year. PLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

STAG Industrial: This industrial REIT is focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. As of Sept. 30, 2025, STAG had a portfolio of 601 buildings across 41 states, spanning 119.2 million square feet.

With the increasing e-commerce penetration, STAG stands at a sweet spot, with 31% of its portfolio specializing in e-commerce activity. Moreover, the growing re-shoring and near-shoring trends have contributed to an increase in demand for warehouse spaces. This will further aid STAG, with one-third of its portfolio located within a 60-mile radius of Megasite projects.

STAG plans to strategically expand its portfolio through external acquisitions and an encouraging development pipeline. The company has a diverse portfolio across geography, tenancy and industry, with one-third of its tenants being investment-grade, aiding stable revenue generation. It has a strong balance sheet with low leverage and high liquidity, fostering future growth.

STAG currently carries a Zacks Rank #2. Over the past two months, the Zacks Consensus Estimate for the 2026 FFO per share has witnessed a 1.1% upward revision to $2.66. This implies 5.1% growth year over year.

Industrial Logistics Properties Trust: This industrial REIT owns and leases industrial and logistic properties throughout the United States. As of Sept. 30, 2025, ILPT owned 411 properties spanning 59.9 million square feet, 94.1% leased to around 300 different tenants with a weighted average lease term of 7.4 years.

ILPT’s high-quality industrial properties are primarily anchored by tenants with strong business profiles. Nearly 76% of its annualized rental revenues are derived from investment-grade tenants or from secure Hawaii land leases, yielding stable revenues. Moreover, leases are mostly triple net with annual rent increases.

The company is witnessing strong demand for its high-quality portfolio. In the first half of 2025, ILPT executed leases to the tune of 2.5 million square feet and has a strong leasing pipeline as of Sept. 30, 2025.

ILPT currently carries a Zacks Rank #2. Over the past month, the Zacks Consensus Estimate for the 2026 FFO per share has witnessed an 11.2% upward revision to $1.14. This implies 20% growth year over year.

Here’s how both stocks have performed over the past six months.

Image Source: Zacks Investment Research