Landlords say some occupiers are in ‘wait and see’ mode
The latest wave of U.S. trade tariffs is having ripple effects across the industrial real estate landscape, as uncertainty prompts tenants to delay leasing decisions. Many occupiers are in “wait-and-see” mode, reevaluating their space needs amid shifting trade policies and unpredictable consumer demand.
Key takeaways:
- Tariff Tension: With new 25% tariffs on imported cars and broader levies on goods from China, Mexico, and Canada, tenants are pausing expansion plans while they gauge potential impacts on retail pricing and supply chain flow.
- Leasing Slowdown: Warehouse landlords, particularly near U.S.-Mexico border markets, report a noticeable pullback in leasing activity. Tenants are asking for more time to reassess strategies before committing.
- Underwriting Uncertainty: Industrial decision-making has become tougher for both occupiers and investors. “It’s very challenging for a business today to underwrite anything,” said Laura Clark of Rexford Industrial.
- Long-Term Opportunity: While short-term volatility is creating friction, there’s a silver lining. Some manufacturers are accelerating reshoring efforts to avoid import taxes — potentially fueling demand for U.S. logistics and manufacturing space.
- Winners vs. Losers: Large global operators with diversified supply chains are more insulated, while smaller e-commerce users may feel the squeeze. Construction and auto sectors, reliant on imports, face heightened pressure.
📌 My Take as an Industrial Broker: This tariff-driven pause is a critical moment for occupiers and investors to take a strategic look at their real estate plans. As a tenant rep and investment sales advisor, I’m seeing clients use this time to reassess supply chain risks, optimize facility size, and explore more flexible lease structures. The winners will be those who prepare now — so when clarity returns, they’re ready to move with confidence.
If you’re navigating this uncertainty and want a second set of eyes on your current lease or site strategy, I’m here to help. Let’s position you for strength — not just survival — in this shifting landscape.