- Industrial remains a preferred destination for capital, with fundraising activity outpacing most other property types and investment still favoring logistics, particularly core and core-plus product.
- Deployment has become more measured as higher rates slow deal flow and pressure underwriting more than property fundamentals.
- North America is gaining share, supported by stronger economic fundamentals, demographic growth, and greater investor conviction in the region.
- Flight to quality remains firmly in place, with capital concentrating in Class A logistics, prime locations, and newer assets.
- Constrained supply is helping support pricing, as rising costs and limited speculative development curb new deliveries.
The global investment backdrop remains supportive for industrial, reinforcing its position as a preferred destination for capital. Investment volumes continue to run ahead of last year across the U.S., EMEA, and APAC, while fundraising remains concentrated in logistics. North America is capturing a larger share of that capital, reflecting a more selective approach to deployment and stronger regional conviction.
The larger challenge isn’t weakening real estate fundamentals but a higher cost of capital. Rising bond yields, wider required spreads, and firmer inflation are slowing pricing discovery and extending deal timelines, particularly in Europe, where some transactions are already being delayed as buyers and sellers reassess clearing levels.
Steig Seaward
Industrial capital markets continue to show resilience, even as geopolitical risk and higher rates make execution more challenging.
Even in a more cautious environment, flight to quality remains firmly in place across industrial capital markets. Class A logistics, bulk distribution space, and prime infill locations continue to attract the deepest pools of capital and the most durable occupier demand. With development pipelines shrinking and construction costs rising, limited new supply should continue to support pricing and institutional interest, even if capital deployment remains measured in the near term.
Will Mathews
Mike Kidd
