In this episode of the Industrial Advisors podcast, hosts Bill Condon and Matt McGregor are joined by Mike Kendall, who heads the Industrial West Coast investment team. The discussion centers around the state of the industrial real estate market in the first half of 2025, highlighting trends, regional variations, and investment strategies. Key insights include the observation that the risk pendulum is currently skewed, making it a potentially good time to buy for strategic investors. Market activity, influenced by factors like tariffs and tenant demand, shows varying strengths across regions like Phoenix, the Inland Empire, and Seattle. The conversation also covers cap rates, aggressive buyers, and the challenges developers face in raising equity for speculative projects. The episode concludes with predictions for the second half of 2025, suggesting a modest uptick in transaction volume driven by certain types of deals, with a more significant increase expected in early 2026.
00:00 Introduction to the Risk Pendulum
00:37 Welcome and Guest Introduction
01:07 Market Activity and Trends in 2025
02:02 Investment Strategies and Deal Dynamics
03:54 Challenges in Land Sales and Equity Raises
05:45 Regional Market Analysis
08:27 Demand Shifts and Investment Profiles
11:10 Aggressive Buyers and Market Predictions
14:31 Cap Rates and Market Performance
16:16 Conclusion and Farewell
