U.S. Industrial Real Estate 2025: Transactions Up 51%, Offices Recover

CUPS Realty
Aug 29
2 min read

Uncertainty still clouds the U.S. economy—volatile trade policies, weaker job gains, and slowdown fears. Yet Dallas–Fort Worth is defying the trend: sales volume surged to $38B, up 51% year-over-year.

For investors, this signals the market is past its trough. It’s time to reassess strategies in U.S. industrial real estate and U.S. office buildings.

U.S. Industrial Real Estate: Stability Through Sale-Leasebacks

Industrial sales remain below peak levels but outperform other markets. With vacancies above 9% since 2024 and rent growth cooling, owners are turning to sale-leasebacks.

Example: Nissan’s $343M sale to Morgan Stanley & North Haven Net REIT, including a 215,000-sf Irving facility leased back through 2037.

The new value of U.S. industrial real estate lies in stable cash flows anchored by long-term tenants, not just rent growth.

Multifamily: Capital Flows, Rent Growth Delayed

Annual sales hit $10.6B, up 58%.
Buyers favor affluent suburban projects; mid- to lower-tier assets risk distress.
AvalonBay’s $431M deal for six BSR REIT properties (1,844 units) shows where capital is going: Frisco, Allen, and other high-income suburbs.

Oversupply is easing, but true rent growth won’t return until mid-2026. Multifamily remains a long-term play, not a quick win.

U.S. Office Buildings: Trophy Assets vs. Opportunistic Plays

Office sales reached $4.3B, up 14%, showing a thaw. But the market is split:

Cousins Properties bought The Link at Uptown for $218M ($747 psf), setting a post-2020 record. 97% leased, credit tenants.
Bradford Cos. bought Uptown Tower for $20M ($79 psf) at only 51% leased, planning a $10M reposition.

In short: trophy offices still command premiums, while under-leased assets attract value-add investors.

Retail: Private Buyers Lead, Grocery & Services Hold Up

Retail capital markets are quieter, but private investors make up 75% of deals.

Kessler Hills Shopping Center, 120,000 sf, $17.5M.
Mockingbird Central Plaza, $41.9M, 98% leased.
Pioneer Plaza, $75.9M portfolio deal, grocery-anchored with Dutch Bros Coffee.

Message: Everyday-use retail—grocery, dining, services—remains resilient.

Key Takeaway

Dallas–Fort Worth shows investors the playbook:

U.S. industrial real estate = stable income via sale-leasebacks.
U.S. office buildings = split between trophy premiums and turnaround opportunities.
Multifamily = capital magnet, but patience needed until 2026.
Retail = selective, with grocery and services driving demand.

The trough is over. The question is no longer if to invest, but where.