Shifting global trade patterns and cost pressures are reshaping industrial real estate demand across North America, with logistics users increasingly moving large-scale distribution activity away from coastal port markets and toward lower-cost inland logistics hubs. This is according to a new report from Cushman & Wakefield, “North America Ports & Trade Update: 2025 in Review.”

Rising costs in coastal logistics markets are contributing to the shift. Industrial rents in port markets climbed 65% between 2019 and 2023 and remain 33% higher than the national average, encouraging many occupiers—particularly those requiring facilities larger than 500,000 square feet—to pursue more cost-effective inland locations.

As a result, port markets recorded only 2% growth in industrial demand in 2025, compared with 21% growth across inland markets, reflecting a broader reconfiguration of supply-chain networks.

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