The 2025 NAIOP I.CON East, held in Jersey City, is a premier event focused on industrial real estate trends, challenges and opportunities. With 1,200 attendees and a sold-out crowd for the third consecutive year, the conference reinforced its status as a must-attend event for real estate industry professionals.
Offering insights on everything from tariffs to tenant demand to potential tax legislation, our Cohen & Co contingent walked away with a deepened understanding of the current state of the industrial real estate sector and how we can continue to proactively advise our clients in this space. Below offers a glimpse into what’s currently top of mind for this industry segment.
- Tariff Uncertainty and Business Caution. The impact of tariffs on supply chain stability will be critical. There are two key types to have on your radar — bilateral tariffs, which affect trade agreements between two nations, and sectoral tariffs, which specifically target certain industries. The implementation of tariffs can create supply chain disruptions. In anticipation, businesses are operating more cautiously, hesitating to make bold investments or expansion decisions. They’re also adjusting strategies to mitigate uncertainty and unpredictability, including leveraging AI for forecasting and efficiency, reducing reliance on single suppliers to minimize points of failure and using proactive contingency planning to prepare for worst-case scenarios.
- Capital Markets and Tenant Demand. While the industrial sector remains strong, many are proceeding with cautious optimism. Lease escalations are rising, reflecting the continued growth and competitiveness of industrial real estate investments; however, tenant demand is becoming increasingly market-specific, with smaller, niche industrial markets emerging.
- Proposed Tax Legislation’s Real Estate Impact: The potential impact of tax policy changes on the real estate industry was, of course, on everyone’s minds. The One Big Beautiful Bill (TOBBB), currently in Senate negotiations, includes several tax items still in flux, such as the state and local tax cap, a proposal to implement and extend 100% bonus depreciation and the implementation of another phase of Qualified Opportunity Zone (QOZ) investments. Understanding these evolving policies is crucial for investors, developers and industry professionals.
The challenges above are poised to impact industrial real estate, as well as many others. It will take planning, strategy and foresight to remain prepared for the twists and turns ahead.
Contact Christie Stravino or a member of your service team to discuss this topic further.
In this blog Cohen & Co is not rendering legal, accounting, investment, tax or other professional advice. Rather, the information contained in this blog is for general informational purposes only. Any decisions or actions based on the general information contained in this blog should be made or taken only after a detailed review of the specific facts, circumstances and current law with your professional advisers.