Industrial and logistics real estate

Clarion Partners’ research projects that industrial will continue to be among the top-performing commercial real estate sectors, underpinned by powerful and enduring long‑term demand drivers.
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"Clarion Partners was an early mover in the industrial sector and is now among the largest industrial property owners in the U.S. The sector’s advantages, including stable cash flow, low ongoing capital needs, and a broad, diversified tenant base, make industrial a critical component of a well‑positioned real estate portfolio."

— Dayton Conklin, Managing Director & Head of Clarion's Industrial Platform

Industrial real estate FAQs

WHAT IS INDUSTRIAL REAL ESTATE?

Industrial real estate includes any real estate used for logistics purposes, including distribution, storage, assembly, and manufacturing. Industrial real estate is considered a traditional property sector, along with multifamily, office, retail, and hospitality real estate. 

Learn more about the benefits of industrial real estate

WHAT ARE DIFFERENT TYPES OF INDUSTRIAL REAL ESTATE?

Key categories include bulk distribution warehouses, last-mile logistics centers, heavy and light manufacturing facilities, adjacent outdoor storage, cold storage facilities, and other specialized spaces.

WHAT DRIVES DEMAND FOR INDUSTRIAL REAL ESTATE?

Demand for industrial real estate is driven by factors such as e-commerce expansion, technological advancements, supply chain optimization, and shifting globalization trends (including nearshoring, onshoring, and friendshoring).

Modern, well-located Class A assets continue to attract robust tenant demand, while older, legacy warehouses face a higher risk of obsolescence.

WHAT IS THE OUTLOOK FOR U.S. INDUSTRIAL REAL ESTATE?

The U.S. industrial warehouse market is shifting from a supply-heavy response (after the COVID-19 pandemic warehouse space shortage) to a re-balancing period as demand stabilizes. Despite short-term economic uncertainty, structural tailwinds remain intact as core real estate enters a new cycle. Clarion believes that macro trends such as demographics and innovation should continue to support the industrial sector's performance going forward. 

Read more in our latest whitepaper

Click here to learn about the latest tailwinds impacting the industry

WHAT IS CLARION'S LONG-TERM OUTLOOK ON INDUSTRIAL REAL ESTATE?

Clarion Partners was an early mover in the industrial space, entering the sector at scale in 2002, and currently manages ~45 billion in AUM across ~950 industrial properties.

Clarion continues to expand its industrial and logistics platform across the U.S. and Europe due to our conviction in the long-term fundamentals of modern industrial real estate.

Learn more

 
 

News


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Clarion's industrial portfolio

Clarion maintains a high-quality industrial portfolio diversified by geography, property size, and tenant base, focusing on modern product in locations supported by growing production, supply chain infrastructure, and strong local and regional consumption bases.
Industrial data highlights*

$45B

IN AUM

267

CITIES

~1,400

GLOBAL TENANTS


* Includes Clarion Partners Europe portfolio in the following countries: France, Germany, the Netherlands, Spain, the United Kingdom, Poland, and Czechia.

image for Clarion Partners Europe section  
 

Clarion Europe

Clarion acquired a majority interest in a European industrial platform, which was re-named Clarion Partners Europe (CPE) in 2019. As a subsidiary of Clarion Partners, CPE manages over 3.2 million total square meters of logistics space across seven countries.
Learn about Clarion Europe

The benefits of industrial real estate

Magnifying glass 

RESILIENT DEMAND

Driven by e-commerce, supply chain optimization, and reshoring

Correlation arrows 

LOWER OPERATING COSTS

Operational simplicity reduces the need for maintenance and ongoing improvements

Shield 

STRONG RENT GROWTH

Due to high remand cause by declining supply and new construction starts

Income 

DURABLE CASH FLOWS

Supported by net leases and embedded rent escalations from long-term tenants


 
 

Press Release


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Key industrial real estate sector tailwinds


Clarion believes 2026 may offer investors a compelling entry point to industrial real estate due to the following market indicators:
  • Leasing activity gained momentum in the second half of 2025, with net absorption accelerating 60% year over year. Modern logistics lead space demand.
  • Space currently under construction has declined to below long-term averages, and deliveries over the next two years are expected to fall to decade lows.
  • Vacancy rates are stabilizing and remain well below prior cyclical peaks. In several submarkets and size segments, vacancy has declined for multiple consecutive quarters.
  • As vacancy pressures ease and leasing activity continues to improve, rent growth is positioned to reaccelerate in the coming quarters.
  • Property values appear to have bottomed, potentially marking the beginning of a new investment cycle.

Source: Based on analysis by Clarion Partners Global Research with data from CBRE-EA, CBRE, JLL, Cushman & Wakefield, Colliers, NCREIF, RCA, 4Q25. Past performance is not indicative of future results and a risk of loss exists. 

  • Interior of logistics warehouse
    Clarion Partners Accelerates Global Industrial & Logistics Investments in 2025
    Clarion Partners Accelerates Global Industrial & Logistics Investments in 2025
    News & Information
    ;#Home;#Industrial 1;#
    01.26.2026
    Clarion Partners continues to expand its industrial and logistics platform across the U.S. and Europe, having completed more than $2 billion in gross industrial acquisitions in 2025.
    /news/global-industrial-and-logistics-investments-2025
  • Man standing in front of industrial warehouse
    Trends in U.S. Industrial Real Estate
    Trends in U.S. Industrial Real Estate
    Video
    ;#Home;#Industrial 2;#
    08.12.2024
    Clarion believes the Industrial sector is a resilient and compelling asset class, driven by durable cash flow, stable supply/demand fundamentals, and the potential for long-term growth.
    /insights/trends-in-us-industrial-real-estate

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Investment in real estate is speculative and involves significant risk. For more information about certain of the material risks and limitations associated with Clarion Partners’ investment advisory products, strategies and services, please see Clarion’s current Form ADV Part 2A brochure, which is available on the SEC’s Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/108803. Investors should consider their investment objectives, and it is strongly suggested that the reader seek his or her own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory risks and evaluate their own risk tolerance before investing.

This material does not constitute investment advice, nor does it constitute an offer in any product or strategy offered by Clarion Partners LLC or Clarion Partners Europe, and should not be viewed as a current or past recommendation to buy or sell any securities. Any specific investment referenced may or may not be held in a Clarion Partners client account. It should not be assumed that any investment, in any property or other asset, was or will be profitable.

All Clarion Partners LLC and Clarion Partners Europe statistics, data and charts, including but not limited to assets under management (AUM), ESG data, sector data and property data, as well as data related to our investors, tenants and employees, are as of December 31, 2025 unless otherwise noted.

Photos used in this website were selected based on visual appearance, are used for illustrative purposes only, and are not necessarily reflective of all the investments in a Clarion fund or portfolio or the investments a Clarion fund or portfolio will make in the future.

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