Industrial real estate is now entering a new era of smart growth, based on optimizing supply chains, advanced technology initiatives and sustainability, according to PWC and the Urban Land Institute's latest report on emerging trends in real estate in 2025.

Following the pandemic, companies rushed to construct new logistics facilities, resulting in oversupply. As a result, speculative development fell 43% in 1H 2024 compared to the prior year – a trend expected to continue into 2025. Leasing activity also slowed in 2023 and 2024. The report predicts that it is about to change with more high-quality options that will be part of "a strategic, deliberate approach to growth that will shape the future of the supply chain." However, leasing activity will be more moderate than experts anticipated.

In the first half of 2024, there were 80 million square feet of net absorption – 37% less than in the same period in 2023. Leasing nationwide rose 5% — an outcome attributed to lower rental rates and considered a leading indicator of net absorption.