Industrial real estate remains a standout investment in 2025, driven by its strong fundamentals of high demand, low vacancy rates, and consistent rent growth. Michael Thom, an attorney in Obermayer’s business and finance department, notes that these factors make industrial properties especially attractive to investors. Many CRE firms hope that 2025 will be the year that almost everything booms after dozens of months of turbulence. For his part, Michael Thom, an attorney in Obermayer’s business and finance department, has zeroed in specifically on the industrial sector. Industrial has many attributes that make it an attractive investment. “Rents are going up for these spaces, which make them good investments for commercial landlords, they have low vacancy rates, unlike many other industries,” Thom highlighted. The trend reflects the sector’s ability to deliver steady returns even in a challenging economic environment. Industrial real estate’s key advantages include stability and cost efficiency. Compared to other commercial real estate investments, industrial properties typically require lower operational costs and fewer tenant improvements, offering investors an appealing balance of affordability and profitability.
At Sealy & Company, we have successfully executed our proven investment strategies in the industrial real estate market for over 60 years. In the recently published article Industrial tops CRE Investment Picks for 2025 (article included below) by GlobeSt, industry leaders though leadership on the outlook for industrial real estate echo the foundation of investing that has enabled Sealy & Company to achieve consistent success across eight major market cycles. By focusing on disciplined acquisitions, leveraging in-depth market research, and maintaining strong broker relationships, we’ve built a portfolio of high-quality properties with long-term value potential. Our disciplined acquisition strategy reflects our ability to adapt to market conditions while staying committed to delivering value, ensuring that every investment aligns with our vision for sustainable growth and long-term success. As industrial real estate thrives, Sealy & Company remains committed to continuing our efforts, capitalizing on the sector’s enduring strengths and upcoming opportunities.
Many CRE firms are hopeful that 2025 will be the year that just about everything across the board booms after dozens of months of turbulence. For his part, Michael Thom, attorney in the business and finance department at Obermayer, has zeroed in specifically on the industrial sector.
Industrial has many attributes that make it an attractive investment. One of them Thom points to is key fundamentals.
BOOMING RENTS
“Rents are going up for these spaces, which make them good investments for commercial landlords, they have low vacancy rates, unlike a lot of other industries,” he said, who focuses on real estate deals and the legal side of the industry.
STABILITY AND LOWER COSTS
Also, Thom noted that warehouse operational costs aren’t as high compared with other real estate asset classes.
“There are not many tenant improvements [for industrial properties needed],” said Thom.
“You can use a warehouse space for a sports facility, where your whole tenant improvement is laying out turf and you’re done.”
Another factor is the stability of the industrial assets today compared with other real estate categories. For example, Thom calls the office sector “scary” due to the remote work trend that’s picked up since the pandemic. And while it has been recovering and some think it has bottomed out, the asset class still faces uncertainties, and occupancy is still down significantly from pre-pandemic levels. The same volatility won’t apply to the industrial sector.
“Office staff can probably do some [work remotely] but people who are doing the day-to-day [in the warehouse sector] and the actual industrial work, there aren’t people doing that from home. You’re not driving a pallet from your couch, at least not yet.”
Thom says there are also opportunities in the multifamily sector because of how unaffordable housing has become. As a result, more people are turning to renting.
“Multifamily apartment units, buildings that are coming up, they’re getting the demand, and have the need. And if you have the ability to come in and acquire some sort of multifamily property, whether it’s 30 units or five units — you’re going to fill them up,” he said.
But Thom is particularly bullish about the opportunities sitting in the industrial sector because you may only need one or two tenants to fully occupy the space, and the risk is lower compared with some other asset classes.
“If you have a good industrial space that’s got a good location, [and] good access, people are going to want that space,” he emphasized.
“And there are ways where landlords can be creative with tenant improvements and rents to attract good, high-quality credit tenants.”
BUYERS NEED TO BE PATIENT
With interest rates coming down, but still high, Thom advises buyers to stay patient. Now might be the time to score “value deals” — but the process shouldn’t be rushed either.
“You want to find a good deal that you’re going to be able to hold and resell for value a few years from now,” he explained.
“You can find space where there might be some issues, and if you have a good team of brokers in place and a good team of other professionals in place, you might be able to quickly add that value and make a good profit on it.”
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About Sealy & Company
Sealy & Company, a fully-integrated commercial real estate investment, and operating company, is a recognized leader in acquiring, developing, and redeveloping regional distribution warehouse, industrial/flex, and other commercial properties. Sealy provides a full-service platform for high-net-worth individuals and institutional investors through our development, management, and brokerage divisions.Sealy & Company has an exceptional team of over 100 employees, located in five offices, with corporate offices in Dallas, TX and Shreveport, LA.