Sheldon Gross Realty forecasts steady industrial performance, measured office recovery in 2026

By Jonathan Glick and Josh Glussky

Looking further ahead into 2026, we at Sheldon Gross Realty are keeping a close eye on the market, doing our homework, and staying cautiously optimistic. With a few exceptions, we expect the year to look a lot like 2025, with a steady demand for warehouse space and Industrial Outside Storage (IOS).

Industrial

Given current conditions in the capital markets, buyers are being more selective, focusing on location, tenant quality, and lease terms. As a result, lease rates and sale prices should remain fairly steady in the near term.

Supply remains tight, and there’s a clear gap between what sellers are asking and what buyers are willing to pay. Demand is especially strong for 5,000- to 30,000 s/f properties, but inventory is limited, and there’s less sublease space available than there had been.

With fewer aggressive buyers, we expect pricing for existing warehouse properties to level off. At the same time, tariffs and ongoing supply chain issues tied to global tensions are pushing companies to reassess and “right-size” their space, which is helping keep demand in place. One exception is new construction in prime locations, where limited supply should continue to support higher lease rates.

Industrial Outside Storage (IOS) Land

Demand for outdoor industrial storage remains strong. In areas close to New York City, major East Coast ports, and key trucking routes, prices are likely to keep rising. Elsewhere, pricing should stay in line with what we’ve seen over the past year.

Sales activity for IOS has stayed active, with buyers still willing to pay a premium. There’s particularly strong demand for one- to four-acre properties with repair shops, but those are difficult to find.

Industrial-zoned land continues to draw interest, whether or not approvals are already in place. As always, value comes down to location and what the property can be used for. Development will continue, but at a more typical pace, and we don’t expect to see the same elevated pricing levels of the past few years.

Office

With decades of experience in the business, we know how difficult it is to predict where the office market is headed. Still, we’re taking a generally positive view of 2026. There’s a growing push to bring employees back to the office after years of remote and hybrid work. At the same time, demand remains solid for well-located office buildings, especially among business owners looking to buy space for their own use. While change is constant, and while A.I. adds another variable, well-positioned, stable properties should continue to perform.

At Sheldon Gross Realty, we believe 2026 will present real opportunities, and we look forward to helping both current and new clients take advantage of them.

Jonathan Glick is executive VP, and Josh Glussky is assistant VP at Sheldon Gross Realty.