The Quiet Reset: Why 2025 Will Be a Defining Year for Industrial Tenants
Graphic created by Amanda Eastwick, SIOR, CCIM
For the past 18 months, industrial tenants have been operating in rare territory: high vacancy, increased concessions, and landlords willing to compete for occupancy. It’s been a welcome shift after years of landlord-driven pricing and limited availability.
But the cycle is beginning to turn… quietly, steadily, and faster than some realize.
A shift is forming beneath the surface.
Private capital is reentering the market. Equity raises are climbing, institutional investors are cautiously stepping back in, and developers are beginning to position for the next construction wave. While national vacancy remains elevated, we’re seeing the quality sublease inventory evaporate and with it, many of the leverage points tenants have been relying on.
In Northern Nevada, for example, the broad market may still show double-digit vacancy, but the true Class A, high-clear, modern logistics product is tightening. What’s left often requires significant improvements, power upgrades, or timeline extensions — all of which erode the value of lower rents.
The illusion of abundance.
Many tenants look at vacancy data and assume time is on their side. But in today’s environment, not all space is created equal.
The best-positioned buildings are being quietly absorbed by well-capitalized users.
Functional obsolescence is widening. Older space with limited power, low clear height, or inadequate truck courts can’t support modern operations.
Development pipelines are thinner, with fewer new projects slated for 2026 delivery.
In other words, what looks like excess supply on paper is actually a narrowing field of viable options.
The opportunity window for tenants.
Right now, tenants have an unusual chance to negotiate favorable lease structures and flexibility for the next cycle. If they act early.
Start renewals 18–24 months ahead. Early engagement allows for competitive bids and avoids rushed decisions.
Lock in extension and expansion rights. Control future flexibility before landlords regain pricing power.
Negotiate TI capital now. Landlords are still motivated to fund improvements that elevate their assets.
Reassess your footprint. Rightsizing or consolidating locations can yield efficiency gains that outlast the current cycle.
Why 2025 matters.
As interest rates stabilize and capital markets thaw, industrial fundamentals will reassert themselves. The same forces that fueled growth pre-2022: e-commerce, nearshoring, advanced manufacturing, and logistics efficiency, are already reshaping demand patterns. The difference this time is that tenants who took a wait-and-see approach may find themselves reacting instead of planning.
The next 12 months represent the bridge between a soft market and a stabilized one. Smart occupiers will use this window to secure terms that carry them through 2027 and beyond at pricing and flexibility levels that likely won’t return once equilibrium hits.
Final thought.
The “quiet reset” underway isn’t about a surge of activity; it’s about positioning. Those who understand where the market is heading, not just where it’s been, will define the next phase of industrial real estate.
Now is the time to revisit your lease strategy, benchmark upcoming renewals, and model long-term space needs. The best opportunities rarely announce themselves and they’re built quietly, ahead of the curve.
Curious how current shifts could impact your next lease decision? Let’s connect. I help industrial tenants navigate change with clarity and use timing to their advantage.
Broker | Industrial Specialist
Cushman & Wakefield – Northern Nevada
NV License # BS.146113
📍 Clear heights, concrete, and dock doors are my love language.
The views expressed in this blog are my own and do not necessarily reflect those of Cushman & Wakefield.