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# Shippers Shift Focus to Inland Markets Amid Rising Costs
- URL: https://www.industrialbriefs.com/inland-warehouse-demand-rises/
- Published: 2026-11-11T04:01:05.000Z
- Updated: 2026-11-11T04:01:05.000Z
- Description: Demand for inland warehouse markets is rising as shippers seek cost savings and automation-ready facilities. This trend offers opportunities and challenges for AECM professionals.
- Author: IndustrialBriefs
- Tags: construction, engineering

![IB_KEY_FACTS:[{"stat":"83%","label":"**Inland industrial absorption share**","sublabel":"Highest level since 2010 due to cost-saving measures."},{"stat":"5%","label":"**Projected rent growth in port markets**","sublabel":"Expected through 2028 in key North American ports."}]](https://industrial-briefs.ghost.io/favicon.ico)

Interest in inland warehouse markets is surging as companies look to cut costs and upgrade facilities. This trend is driven by rising transportation expenses and the appeal of newer, automation-ready builds.

**What Happened**  
Demand for inland industrial markets has increased over the past two years, according to a report from Cushman & Wakefield dated October 19, 2026\. As shippers grapple with rising transportation costs, exacerbated by diesel price spikes linked to the Iran conflict, the move toward inland distribution hubs has become more pronounced. These inland areas offer lower labor, rent, and energy costs, pushing their share of industrial absorption to 83%, the highest since 2010\. Moreover, the growing volume of imports from Mexico strengthens this shift.

John Kirkman, CBRE Senior Managing Director, noted that companies are increasingly seeking newer warehouse builds, often found inland, that are more adaptable for automation and other upgrades. Despite this trend, Cushman & Wakefield forecasts that demand will strengthen in port markets like Hampton Roads, Savannah, Charleston, and Los Angeles, with a record rent growth exceeding 5% projected through 2028.

However, Melinda McLaughlin, SVP and global head of research at Prologis, cautions that higher vacancies in port markets do not necessarily indicate a broad move inland. She points out that while shipping by rail and truck is gaining favor due to rising trucking costs, this does not automatically translate to a relocation of warehouse facilities.

**What This Means for Your Business**  
For businesses in the architecture, engineering, construction, and manufacturing (AECM) sectors, this shift presents several implications. Companies considering relocation or expansion should weigh the cost benefits of inland markets, particularly with the potential for reduced operational expenses. Additionally, the demand for modern, automation-ready warehouses presents opportunities for construction and engineering firms specializing in these builds.

Compliance and procurement officers must also stay vigilant about evolving logistics needs, which can impact supply chain strategies and the selection of warehouse sites. Federal funding opportunities might be available for projects that align with infrastructure and logistics improvements in these inland areas.

**What US Operators Should Watch**  
Decision-makers should monitor transportation cost trends and federal policies that could influence logistics strategies. Keeping an eye on the projected rent growth in port markets can also guide investment decisions. Furthermore, as the demand for class A inventory grows, staying informed about new construction projects and automation technologies will be crucial for maintaining a competitive edge.

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*Source:* [*https://www.facilitiesdive.com/news/is-warehouse-demand-shifting-toward-inland-markets/873677/*](https://www.facilitiesdive.com/news/is-warehouse-demand-shifting-toward-inland-markets/873677/?ref=industrialbriefs.com)