6 Key Takeaways from NAIOP I.CON East | Industrial Development Outlook
Our Alston Construction team recently attended NAIOP’s I.CON East conference, the premier industrial real estate event, and left with valuable insights into the evolving landscape of logistics, manufacturing, and data center development.
1. Demand Shifting to Smaller-Scale Industrial
In the Southeast, demand for 100K–300K SF facilities is outpacing mega-distribution centers. Markets are also seeing a surge in interest in Industrial Outdoor Storage (IOS) as end-users seek more specialized solutions.
2. Tariff Uncertainty is Widespread
From developers to contractors and capital partners, everyone’s asking the same question: what will tariffs mean for us? The short answer—uncertainty remains high. So far, strong subcontractor capacity and a push to close deals have helped keep costs stable.
3. Industrial Outlook Remains Bullish
Despite the noise, our outlook for the industrial sector remains strong for the second half of 2025 and into 2026. Demand, adaptability and long-term confidence are still very much in play.
4. Data Centers Are Driving Site Selection
“Big Data” continues to dominate the conversation. Land with access to sufficient power and water infrastructure is at a premium, and developers are aggressively seeking qualified sites for future data center builds.
5. Utilities & Permitting Are Under Scrutiny
Power access and permitting timelines are a bottleneck across many markets. Attendees discussed the need for alternative energy sources, including solar and small modular reactors (SMRs) to meet long-term demands.
6. East Coast Port Activity
Port activity has continued to surge on the east coast, taking the lead over west coast ports as a percentage of overall US port activity. New Jersey and Savannah ports lead the way.