Solid State Capital
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Discover the enduring power of real estate—a proven asset that
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WHAT'S NEW IN CRE AND THE MARKET?
May 13, 2025
Multi-Tenant Industrial Continues To Perform
The U.S. multi-tenant light industrial real estate market continues to demonstrate remarkable resilience, even as other commercial real estate sectors face challenges. Investor confidence remains strong, with multi-tenant industrial properties experiencing a 5.8% year-over-year sales increase in Q1 2025, signaling their enduring appeal as stable investments in a volatile market. Leasing activity has also surged, with the industrial sector recording its strongest quarter since mid-2024, reaching 123.3 million square feet of leased space. Notably, mid-sized facilities (ranging from 100,000 to 250,000 square feet) have gained popularity, making up 27.3% of total leasing volume—an indication of shifting tenant preferences.
On the supply side, the development pipeline has significantly contracted, dropping to its lowest level since 2015—a 29.9% year-over-year decline, totaling 253.2 million square feet. This slowdown in new construction may help balance supply and demand in the coming months, offering some relief from overbuilding concerns. At the same time, e-commerce continues to be a major driver of demand for industrial space, with online sales accounting for 19% of core retail sales in 2024. This sustained digital shopping trend has kept demand for warehouse and distribution spaces high across the country.
Overall, these recent developments underscore the strength of the multi-tenant light industrial sector within the broader commercial real estate market. For investors seeking stability and growth, this segment offers compelling opportunities.
May 2, 2025
Why Multi-Tenant Industrial Real Estate Stands Above the Rest
In a market filled with volatility and headlines that spark more fear than clarity, one asset class continues to quietly outperform: multi-tenant industrial real estate.
While office and retail face existential questions, industrial keeps accelerating. E-commerce, logistics reshoring, and manufacturing growth are converging to create persistent demand for small-to-mid-bay industrial space. And unlike single-tenant assets, multi-tenant industrial benefits from diversification—reducing vacancy risk and creating multiple streams of predictable cash flow.
It’s also one of the few asset types still experiencing rental rate growth in many markets. Limited supply, high barriers to entry, and essential business tenants make it remarkably resilient—even in a high interest rate environment.
At Solid State Capital, we believe these fundamentals are no longer a trend—they’re a structural shift. Investors looking for steady income, inflation protection, and real asset exposure are finding this corner of the market to be a powerful answer.
As always, the key is in disciplined acquisition and local market knowledge. But if you’re looking for where capital is quietly compounding while others are distracted—this might be it.