Need further proof that demand in the once red-hot U.S. industrial market has slowed? In its most recent market snapshot, Savills reports that the country’s industrial sector saw 45.5 million square feet of absorption in the second quarter. That’s down nearly 30 million square feet from a year ago.

According to Savills’ numbers, the United States saw 74.4 million square feet of industrial absorption in the second quarter last year, a far more robust number than the 45.5 million square feet it saw in the second of 2024.

Other numbers show industrial’s slowdown, too. Savills reported 410.5 million square feet of new industrial properties under construction in the second quarter of this year. That, too, is down significantly from the same quarter a year ago, when 707.3 million square feet of industrial properties was under construction.

Then there’s the sector’s vacancy rate. According to Savills, the U.S. industrial sector’s vacancy rate rose to 7.1% in the second quarter, up from 4.7% a year ago.

Deliveries also fell, though by a smaller amount. Savills said that the United States saw 113.8 million square feet of new industrial product hit the market in the second quarter, down from 154.1 million square feed during the same quarter 12 months ago.

The only number that didn’t drop? Asking rental rates. According to Savills, the average asking rental rate stood at $9.53 a square foot in the second quarter. That is up from an average of $9.22 a year ago.

Savills also reported that a record 185.3 million square feet of sublease space is on the market for lease. That is up 58% from last year and still rising.