Logistics Real Estate in Focus: Investment Trends and Developer Strategies

By Brielle Scott for Market Share Blog | October 14, 2025

 

David Greek and Matt Schlindwein, managing partners with Greek Real Estate Partners, joined NAIOP’s Inside CRE podcast recently to offer their takes on today’s investment climate, the headwinds shaping logistics real estate, how developers are adapting to higher costs and political pressures, and how their NAIOP involvement has shaped their careers.

Below, a few takeaways from the two industry leaders.

1. Industrial Real Estate Holds Steady Amid Market Weakness

Despite broader capital market softness, industrial assets remain a top-tier investment class, closely rivaling multifamily. However, institutional appetite has shifted toward value-add acquisitions and existing assets, especially those priced below replacement cost. Speculative development, particularly large-scale projects, faces headwinds due to lingering vacancy rates and risk-averse capital.

2. Small-bay Warehouses Are Gaining Favor

Greek emphasized the growing appeal of small-bay, multitenant industrial spaces, which offer long-term stability and reduced single-tenant risk. Historically overlooked due to higher management demands, these assets are now attracting institutional interest thanks to consistent leasing performance and resilience against global economic disruptions.

3. Interest Rate Clarity Encourages Risk-taking

While higher interest rates have impacted valuations, much of that adjustment has already been priced in. The recent rate cuts have introduced greater certainty, enabling investors to plan more confidently and potentially re-enter the development space. As Schlindwein noted, declining rates could justify tighter spreads and more aggressive investment strategies.