E-commerce and Third-Party Logistics (3PLs) Drive Over Eight Million Square Feet of Lease Activity in Early 2026

Clarion Partners, a leading investor in industrial real estate, today announced robust leasing activity across its global portfolio, with more than 8 million square feet of newly executed leases year-to-date, including 7.1 million square feet (MSF) in the U.S. and 1.0 MSF in Europe. Additionally, both regions of the business set new leasing records for a first quarter (for the U.S. region, this was the strongest first quarter in the Firm's 40+ year history; for Europe, it represented the strongest Q1 since the firm began building its European platform in 2020).

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35 Northlake, a multi-building industrial park located in the Dallas, TX market

Clarion's U.S. leasing activity includes 35 new leases spanning key logistics and distribution markets including Dallas/Fort Worth (1.1MSF), Lehigh Valley (1.0 MSF), Indianapolis (800k SF), Inland Empire (756k SF), and New Jersey (445k SF). The vacancy rate for the Firm's nearly 220 MSF U.S. industrial portfolio declined by 175 basis points (bps) over the first quarter.

Clarion Europe's leasing activity was most robust in markets including the Netherlands (454k SF), Spain (238k SF), France (205k SF), and the United Kingdom (102k SF), contributing to platform vacancy levels.

Tenant demand in both markets has been driven primarily by e-commerce and 3PLs, reflecting the ongoing evolution of global supply chains and the need for modern, efficient distribution networks.

"Despite ongoing macroeconomic uncertainty and supply chain recalibration, we continue to see strong absorption in our portfolio, particularly across well-located Class A assets," said Dayton Conklin, Managing Director and Head of Clarion Partners' U.S. Industrial Platform. "With two thirds of U.S. inventory built before 2000, obsolescence continues to support positive rent growth in newer, state-of-the-art facilities."

"Tenants continue to prioritize modern facilities that provide higher clear heights, advanced loading capabilities, ESG features, automation readiness, and proximity to labor and transportation nodes," said Clarion Partners Europe CEO Alistair Calvert. "This trend is particularly evident in urban infill and major distribution corridors, where supply remains constrained and demand for best-in-class space continues to outpace availability.

Class A Activity Gains Momentum

For the overall U.S. market, Q1 industrial vacancy remained stable at 6.7%, the first time without a quarterly increase since early 2022. In addition, Class A warehouse net absorption specifically accelerated both quarter-over-quarter and year-over-year, exceeding new construction deliveries for the first time in almost five years. Leasing in the 1MSF+ segment was particularly robust, with 19 MSF of net absorption in Q1. Vacancy in that segment fell 170 bps year-over-year to 4.2% (the lowest among size segments) nationally. Leasing in the big box / e-commerce segment has historically served as a leading indicator for increased activity across other industrial tenant types and building sizes.¹

In Europe, overall market vacancy stabilized at 5.5% in Q4 2025,² signaling that the market is approaching, or may already be at, peak vacancy. As in the U.S., a growing bifurcation is evident between modern Grade A buildings and older stock, with vacancy for the former remaining below 3% in core Western European markets.³

Positioned for Continued Growth

Clarion Partners remains focused on growing its industrial platform through development, strategic acquisitions, and active asset management across high-conviction markets in the U.S. and Europe. The firm's disciplined approach and emphasis on location and quality continue to drive leasing performance and long-term value creation.

¹CBRE-EA with additional calculations from Clarion Partners Global Research, Q1 2026

² CBRE, Q4 2025

³ Green Street, January 2026

About Clarion Partners

Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for more than 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With over $72 billion in total real estate and debt assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to 500 institutional investors across the globe. Clarion is scaled in all major property types and was an early entrant into the Industrial sector. The Firm's global industrial team manages a 945+ property portfolio in the U.S. and Europe consisting of more than 245 million square feet. For more information visit www.clarionpartners.com and follow us on LinkedIn and YouTube.

About Franklin Templeton

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients' strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.

With more than $1.7 trillion in assets under management as of January 31, 2026, Franklin Templeton operates globally in more than 35 countries. To learn more, visit franklintempleton.com and follow us on LinkedIn. Franklin Resources, Inc. (NYSE:BEN)

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Clarion Partners Reports Record Leasing Activity Across Its U.S. and European Industrial Business, Highlighting the Resilience of Class A Industrial Assets