Why Mid-Size Industrial Real Estate (15K–120K SF) Is the Smart Investor’s Choice in 2025
By Kyle Gibbons, Acquisitions Lead at CommercialGRP
When most investors think of industrial real estate, they picture massive distribution centers—million-square-foot facilities serving Amazon or Walmart. While those assets get headlines, I believe the real opportunities in 2025 lie in mid-size industrial properties between 15,000 and 120,000 square feet. At CommercialGRP, this is our specialty, and here’s why investors should be paying attention.
1. Strong Demand from Diverse Tenants
Mid-size spaces appeal to a wide variety of tenants—from regional distributors to local manufacturers, logistics providers, and e-commerce companies. Unlike mega-box tenants that can vacate and leave behind a major gap, mid-size assets attract multiple tenant profiles. This diversification reduces risk and creates long-term leasing stability.
2. Ideal Fit for E-Commerce Growth
E-commerce continues to drive industrial demand, but not every company needs a million-square-foot building. Many retailers and 3PLs are now focused on last-mile and regional fulfillment, where mid-size warehouses are the perfect fit. These properties are often located closer to urban centers, making them critical for fast delivery times.
3. Value-Add Opportunities
Mid-size industrial buildings frequently come with vacancy, outdated layouts, or deferred maintenance—all of which create opportunity. By repositioning these properties, improving functionality, or stabilizing occupancy, investors can unlock meaningful value. At CommercialGRP, we specialize in acquiring properties that are partially occupied, then driving returns through leasing and operational improvements.
4. Lower Competition, Higher Yield
Institutional investors tend to chase either massive distribution centers or small flex spaces. That leaves a gap in the mid-size segment—where private and mid-market investors can often find better cap rates, less competition, and more negotiating leverage. For those seeking yield alongside stability, this is an attractive play.
5. Resilience in Any Market Cycle
Historically, mid-size industrial properties have proven resilient during economic downturns. Because they serve essential businesses—logistics, light manufacturing, and regional distribution—they remain in demand even when consumer spending slows. This makes them a defensive investment choice for 2025 and beyond.
Final Thoughts
At CommercialGRP, we’re focused on uncovering value where others overlook it. Mid-size industrial assets are well-positioned for growth, stability, and long-term investor returns.
If you’re an investor looking for exposure to industrial real estate in the 15K–120K SF range, we’d love to connect. Visit our Investor Relations page to learn more about upcoming opportunities and how to partner with us.
