Colliers’ 2025 National Industrial Conference united industry leaders and real estate experts to address current market dynamics and future industrial trends. The consistent message throughout the conference was clear: volatility and uncertainty make forecasting difficult, but long-term industrial fundamentals remain solid. Population growth, consumer demand, e-commerce, manufacturing resurgence, warehouse automation, and supply chain shifts continue to support industrial real estate as a resilient and attractive asset class.

From Demand to Delivery: Perspectives from Industrial Occupiers

Moderated by Colliers’ Douglas Biggs, the occupier panel featured leaders from Expeditors, Pratt Industries, and Fanatics, who shared how they are adapting their real estate strategies in today’s tenant-favorable environment. A consistent theme was the importance of starting renewal conversations early — often 18 to 20 months ahead of lease expirations to get ahead of the curve. Expeditors emphasized staying asset-light with shorter lease terms, taking advantage of higher-vacancy markets, and pursuing consolidation opportunities. Pratt underscored the stability required for capital-intensive manufacturing sites and the flexibility to commit to longer term leases for those facilities. Fanatics highlighted a focus on targeting modern Class A facilities in markets with strong customer demand. Together, the panelists painted a picture of occupiers balancing flexibility with long-term commitments to better position their portfolios for the future.

Beyond the Noise: Key Drivers and Emerging Trends in the Industrial Market

Colliers’ Craig Hurvitz discussed the bifurcated U.S. industrial market, noting that the sector is approaching the end of an amplified real estate cycle. While some regions are further along in rebalancing than others, Midwest markets are largely out front, driven by steady demand and measured development. He predicted industrial vacancy would peak by early 2026 when tenant demand and new supply return to equilibrium, although it will climb much higher in some secondary markets where recent speculative development represented a large percentage of existing inventory. The recent record wave of industrial construction has slowed to below pre-pandemic levels, although manufacturing construction spending remains elevated, and data center development continues to rapidly expand. Aaron Jodka noted that industrial sales volume is on the rise and is the only asset class where volume over the past 12 months exceeded the pre-pandemic average. There remains a wide gap between cap rates on REIT-quality assets and the market wide cap rate. This suggests that investors can acquire assets today at an attractive yield and basis, and cap rate compression is in the future. It is important to cut through the noise. Uncertainty is a constant – understanding which headlines impact CRE investment strategy is key.

The Future Isn’t Waiting: Confront Reality Now

Geoff Colvin, the keynote speaker, framed today’s environment around four themes: a fragile economy, implications for real estate, the role of humanity in a tech-driven world, and the upside of turbulent times. He pointed to AI accelerating at breakneck speed, with significant implications for labor markets, tenant demand, and energy infrastructure. Amid rapid automation, qualities like empathy and storytelling are becoming more valuable. For commercial real estate, this era represents both risk and unprecedented opportunity — those who plan for volatility, embrace technology, and double down on the human side of business will define the next cycle’s leaders.

Inside the Shift: How Manufacturing is Reshaping Industrial Real Estate in the U.S.

This session, moderated by Grant Miller highlighted how U.S. manufacturing is growing, with companies often expanding existing facilities to stay flexible and meet evolving consumer and sustainability needs. Speed to market has become critical, particularly in the Southeast, while reliable power access has overtaken labor as the top site-selection driver, putting a premium on sites near transmission infrastructure. Panelists noted that industrial demand is increasingly bifurcated — while sectors such as semiconductors, aerospace, EVs, energy, and AI-driven industries are expanding aggressively, other sectors remain more cautious. For commercial real estate professionals, the opportunity lies in aligning with growth industries, anticipating infrastructure constraints, and guiding clients toward locations and assets that can deliver both speed and long-term resilience.

The New Logistics Landscape: Supply Chain Perspectives from Port & Rail Leaders

Colliers’ Brewster Smith moderated this session. The group discussed the proposed merger of Union Pacific and Norfolk Southern, which would create the first true coast-to-coast rail network, offering a competitive alternative to trucking and unlocking new opportunities for industrial development, particularly in underserved central U.S. markets. The railroad industry’s focus has shifted to freight, with containerized cargo growing even as traditional heavy commodities like coal have declined. A merger is expected to boost long-term returns through greater capacity, speed, and market access, with the potential to spur development of rail-served industrial parks given the railroads’ vast land holdings. For ports, tier 2 and 3 ports are playing a more dynamic role in the supply chain — leveraging automation, taking on more risk, and diversifying cargo flows in ways that complement mature tier 1 ports. Together, these shifts point to a future where rail and emerging port markets drive fresh opportunities for manufacturing and logistics-focused real estate.

Navigating Today and What’s Next for Industrial Capital Markets

Moderated by Colliers’ Michael Kendall, investors emphasized that submarket dynamics now outweigh broad market trends, with strong fundamentals in places like Nashville, Orlando, Chicago, and parts of Southern California continuing to attract long-term commitments despite near-term headwinds. The conversation also touched on the growth of Asian 3PLs, reshoring-related manufacturing, and the border strategy around Laredo, underscoring both opportunities and risk factors tied to regulation and tenant transparency. On development, panelists noted that while new starts have slowed sharply, disciplined land banking and select spec projects in core markets remain essential to stay ahead of demand once absorption catches up.