Don’t Stop Me Now: Innovations driving industrial real estate

The industrial real estate sector's surprising resilience in 2025, despite global trade dislocations and wars, is the central focus. Leasing activity nearly matched peak levels, driven by e-commerce acceleration, re-industrialization in America, and the outsourcing of logistics. E-commerce benefits from faster delivery speeds, while manufacturing leasing sees a boost from factory announcements and component sub-assembly. Renewals significantly contributed to leasing growth, prompting early engagement with tenants. Discussions also cover the increasing demand for power, the impact of data centers on land prices, and the evolving definition of quality warehouse space, emphasizing proximity to end-users and transportation networks. The potential impact of AI and driverless trucks on supply chain evolution and warehouse network design is also explored.