TAG Industrial Watch: November 29, 2025

The holiday season is officially upon us, and industrial investors have much to be thankful for. Notwithstanding how industrial demand, vacancies, and rent growth have performed this year, sale prices are up 5.3% to a record high of $127 per square foot year-to-date (CoStar). In addition to higher cap rates and relatively stable mortgage rates, the continued appreciation of industrial real estate may be attributed to newcomers. For example, at the start of the year, Swedish investment giant EQT shut down its U.S. multifamily fund and reinvested in industrial. In recent weeks, real estate investment trust Peakstone Realty Trust announced plans to liquidate its remaining office properties in exchange for industrial assets, eying an expansion to its industrial outdoor storage portfolio. While the industrial market has its own troubles, it pays not to be the slowest gazelle. With office vacancy rates at record-highs and multifamily returns still below 6%, the industrial market looks attractive to other CRE investors, and that is something existing industrial landlords can truly be thankful for!