Industrial construction costs are rising across the Americas amid improving demand and a recovering development pipeline that create renewed competition for materials and skilled labor, Cushman & Wakefield reported Monday. The firm’s 2026 Industrial Construction Cost Guide found that construction costs increased across all three project sizes tracked.

Small industrial projects rose an average of 3.6% year-over-year to $144 per square foot. Medium projects increased 2.8% to $87 per square foot, while large projects rose 2.3% to $78 per square foot.

“The industrial recovery is becoming more expensive,” said Michael Morehead, industrial manufacturing sector lead, Americas, Project & Development Services at Cushman & Wakefield. “Our research shows demand strengthening and the construction pipeline rebuilding, while development costs are rising across virtually every market we track. For occupiers and developers, that means the next phase of the cycle will require even greater discipline around location, building specifications and capital planning.”

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