Research
SVN State of the Market Report 2025
INDUSTRIAL
A generational shift towards e-commerce during the pandemic ushered in a new era of growth for Industrial real estate. However, as 2025 gets rolling, uncertain trade policy developments elevate the risk of an exogenous shock to the sector, and leading indicators for Industrial show that operators are experiencing some volatility.
After growing by its fastest pace in two and a half years during January, the Logistics Mangers Index (LMI), a key proxy for industrial sector activity, experienced its third largest drop since tracking began in 2016. It also marked the shortest expansion in logistics activity in seven months.
January’s momentary surge came amid a spike in imports driven by North American firms trying to get ahead of potential tariffs on foreign-made goods, which has since subsided. Prices for warehousing, transportation, and inventory each fell in March, reversing price momentum seen to start the year.
