After a period of tenant caution earlier in the year, demand for U.S. logistics space began to improve in the second half of 2025. Late-year leasing activity helped stabilize occupancy levels, supporting the view that logistics fundamentals remain intact as the sector continues to work through elevated supply.
Recent data shows that demand gains have been concentrated in assets supported by clear demand drivers, including build-to-suit and functionally aligned logistics facilities. While vacancy remains above recent historical lows, the return of absorption points to a market that is stabilizing as supply continues to work through the system. Performance across logistics markets is increasingly shaped by fundamentals such as functionality, location, and tenant alignment.
A Market That Rewards Disciplined Positioning
As the logistics sector normalizes, differences in asset performance have become more visible, reflecting how supply and demand are beginning to move toward balance. Properties delivered with clear demand drivers have tended to lease more efficiently, while others have required additional time to stabilize following the significant volume of new supply delivered in recent years.
At the same time, development activity has slowed meaningfully from recent peaks. With fewer speculative projects moving forward, development is increasingly concentrated in build-to-suit projects, reflecting tenant demand for facilities tailored to specific operational needs as the market works toward balance.
A Market Dynamic Aligned with Sealy & Company’s Approach
For Sealy & Company, these market conditions align with a strategy rooted in long-term positioning rather than short-term market timing. While the firm invests across a range of industrial assets, Sealy & Company has consistently prioritized properties that support real tenant demand and maintain relevance across market cycles.
This focus on tenant alignment and disciplined asset selection reflects Sealy & Company’s experience navigating how logistics markets evolve over time. Rather than pursuing rapid expansion during peak development periods, Sealy & Company focuses on asset selection and functionality designed to remain durable as markets transition into more measured phases of growth.
Execution is a key part of that strategy. Sealy & Company applies consistent, well-documented operating standards across its portfolio, including emergency preparedness, vendor oversight, and ongoing compliance practices that support tenant service and asset performance. That operating discipline is reflected across nine properties with BOMA 360 designation, including four earned within the past year, as a result of consistent day-to-day operating practices.
Built on Experience, Guided by Fundamentals
Sealy & Company’s strategy is grounded in decades of experience navigating changing market conditions. Over time, the firm has built a portfolio designed to perform through varying economic environments by focusing on fundamentals that extend beyond individual cycles.
As logistics markets continue to evolve, improving demand and a moderating supply pipeline support a constructive outlook, particularly for assets selected and operated with discipline. While performance will continue to vary across the sector, properties aligned with tenant needs and supported by strong fundamentals remain well positioned.
Source Acknowledgment
This article incorporates industrial and commercial real estate research from Cushman & Wakefield’s United States Outlook 2026 and Colliers’ 2026 CRE Outlook: The CRE Reset—Stability Through Uncertainty.
For more news and information regarding Sealy & Company, please visit the company’s website at www.Sealynet.com.
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.
