The industrial market is realigning and entering a more complex phase — one that requires a deeper understanding of global interdependence, evolving trade policies, and shifting supply chains, according to Principal.
Recent policy shifts in the U.S. regarding global trade agreements indicate that the industrial and warehouse sectors are entering a period of transition, Principal said. While the full effects of a more restrictive trade environment have yet to be fully reflected in the data, these changes have placed the sector under increased scrutiny.
Although industrial real estate has continued to perform relatively well, it has underperformed the retail sector in recent years — particularly open-air shopping centers, which have emerged as the strongest segment within traditional retail. Public real estate investment trusts (REITs), which often serve as early indicators of cyclical trends in private equity, issued cautionary signals in 2024: industrial REITs were
