After a historic slowdown in total transaction volume, the industrial real estate market has a renewed appetite for acquisitions. However, the investment landscape in 2025 is far from straightforward. Liquidity challenges, rising energy costs, shifting logistics trends, and evolving tenant demands are forcing investors and occupiers to rethink their approach.
In Episode 55 of The Real Finds Podcast, host Gordon Lamphere sits down with Scott Robinson, Senior VP of Corporate Development at Plymouth Industrial REIT and Professor at NYU’s Schack Institute, to break down the state of the industrial market in 2025 and strategies for long-term success.
For the past two and a half years, transaction volume in industrial real estate plummeted due to rising interest rates, economic uncertainty, and liquidity constraints. Investors were hesitant, sellers were holding out for 2022 pricing, and deal flow stalled.
Now, in 2025, clarity is returning to the market. Investors are back in acquisition mode, capital is starting to flow again, and industrial real estate is seeing a resurgence in demand—particularly in high-growth sectors like logistics, manufacturing, and technology-driven facilities.
But what’s next for the industrial sector? And how can investors position themselves to capitalize on emerging trends?
🏗️ Key Growth Strategies for 2025 and Beyond:
One of the biggest challenges in the industrial real estate market has been the pricing gap between buyers and sellers. Many sellers still hold onto pre-2023 valuations, while buyers are adjusting to higher capital costs and shifting financing structures.
👉 What’s Changing in 2025?
As liquidity improves, deal flow is expected to accelerate, but investors must be strategic in pricing and financing to ensure long-term returns.
E-commerce continues to fuel industrial real estate demand, with online retail now accounting for over 23% of total retail sales. This trend is expected to keep growing, increasing demand for last-mile delivery hubs, regional distribution centers, and strategically located logistics facilities.
🚛 Investment Focus Areas:
✔️ Urban Infill Properties – Smaller distribution centers near major cities.
✔️ Mid-Sized Industrial Spaces (50,000 – 100,000 sq. ft.) – Growing demand from e-commerce suppliers.
✔️ Flex Warehousing – More companies are seeking shorter, more flexible lease terms.
As global supply chains shift, tariff increases and reshoring initiatives are bringing manufacturing jobs and production facilities back to the U.S.. This means more demand for industrial space, particularly in regions like Texas, Ohio, and the Midwest.
💡 Key Takeaways for Investors:
With rising operational costs, energy efficiency is becoming a major factor in industrial real estate decisions. Occupiers are prioritizing properties that help lower energy expenses, making sustainability upgrades essential for investors.
💡 Strategies for Future-Proofing Against Energy Costs:
🔹 Invest in high-efficiency HVAC systems, solar power, and LED lighting.
🔹 Explore alternative energy sources, including nuclear and renewables.
🔹 Take advantage of state tax incentives for energy-efficient buildings.
Properties that incorporate smart energy solutions will see higher demand from tenants and better long-term returns.
Investors are increasingly shifting away from massive single-tenant warehouses and focusing on multi-tenant, mid-sized industrial properties (sub-100,000 sq. ft.).
🏢 Why the Shift?
✔️ Diverse tenant mix reduces risk – No reliance on a single tenant.
✔️ Shorter leases mean faster rent increases – More flexibility in lease negotiations.
✔️ High demand from smaller e-commerce and logistics companies.
Multi-tenant industrial properties are emerging as one of the most resilient asset classes, attracting increased institutional interest.
The future of industrial real estate is automation-driven. Robotics, AI, and warehouse automation are rapidly transforming logistics operations, meaning that buildings must adapt to support this shift.
🔧 Key Factors for Investors:
✔️ Ceiling height & floor strength – Many tenants now require 32+ foot clear heights.
✔️ Advanced energy infrastructure – Robotics and automation require a consistent power supply.
✔️ Smart buildings – Facilities with AI-powered logistics management systems are in higher demand.
Scott Robinson emphasizes that real estate newcomers should explore multiple roles before committing to a specific sector.
🔹 Get hands-on experience in leasing, brokerage, and asset management.
🔹 Find your niche based on market trends and strengths.
🔹 Build relationships—industrial real estate is heavily network-driven.
For those just starting in industrial real estate, now is a prime time to enter the market, as transaction activity picks up and new opportunities emerge.
The industrial real estate market in 2025, especially for Chicago industrial properties, is poised for strong growth, but success requires a strategic approach. Investors and occupiers who understand liquidity trends, e-commerce demand, energy costs, and automation advancements will be best positioned for long-term profitability.
Key Takeaways:
✅ Transaction volume is rebounding, but pricing must be strategically managed.
✅ E-commerce and logistics are fueling demand, especially for smaller, flexible industrial spaces.
✅ Tariffs and reshoring are creating new opportunities in manufacturing hubs.
✅ Energy efficiency and sustainability are increasingly important factors for industrial occupiers.
✅ Automation and robotics are reshaping industrial real estate requirements.
📢 Want to hear the full conversation? Watch the full episode of The Real Finds Podcast with Scott Robinson On YouTube:
🎧 Watch Now → https://youtu.be/ezxjXqOl7b8
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