Tenant demand for small and mid-sized industrial properties remains one of the most reliable strengths of today’s market. According to Marcus & Millichap’s 2025 Industrial Report, small and mid-sized industrial properties are showing remarkable resilience amid the overall vacancy rate edging upwards nationwide. Cushman & Wakefield’s Q2 2025 Marketbeat Report confirms the trend, reporting a national industrial vacancy rate of 7.1% compared to just 4.4% for warehouses under 100,000 square feet.
This divide highlights a clear trend for smaller industrial assets to continue to perform as newer, larger facilities face rising vacancy and slower lease-up. Construction activity reinforces this imbalance, with nearly three-quarters of projects underway exceeding 200,000 square feet, while developments under 100,000 square feet account for just 10% of the pipeline.
A Market Shift That Matches Sealy & Company’s Expertise
For Sealy & Company, these market dynamics reaffirm the value of a segment that has long been central to our investment approach. While the firm holds investments across a range of property sizes, Sealy & Company has carved out a distinct advantage in small and mid-sized buildings, which is a focus dating back nearly 70 years.
In the late 1950’s, J. Pollard Sealy, Jr., son of company founder, shifted from residential brokerage into commercial and industrial investment, building a strategy built on acquiring under-rented, multi-tenant assets in select southeastern markets. That foundation laid the groundwork for what has become a proven strategy for identifying functional and well-located properties that deliver value across different markets.
The advantages of this property type are clear. Smaller buildings provide flexibility for tenants with diverse operational needs and often offer locations closer to population centers. Their scale makes them accessible to a broader range of users while also supporting strong occupancy levels, even during periods of market recalibration. This strength reflects Sealy & Company’s own experience, as properties in this segment, consistently demonstrate durable performance and long-term relevance.
Sealy & Company’s Long-Term View
For close to seven decades, Sealy & Company has built success by focusing on the small- and mid-sized industrial properties that form the backbone of logistics markets nationwide. This consistent focus has made these assets a cornerstone of the firm’s portfolio. As industrial and commercial markets evolve, Sealy & Company will continue to build on this foundation, using its experience and market knowledge to remain a leader in the spaces where tenant demand and long-term value align.
Source Acknowledgment
This article references reporting from GlobeSt. on national industrial occupancy trends. To explore the full article, visit Small, Mid-Sized Buildings Outperform Larger Warehouses in Occupancy Rates. This article also incorporates data from Cushman & Wakefield’s Q2 2025 U.S. Industrial Marketbeat. To read the full report, visit Cushman & Wakefield.
For more news and information regarding Sealy & Company, please visit the company’s website at www.Sealynet.com.
About Sealy & Company
Founded in 1946, Sealy & Company is a fourth-generation family-owned commercial real estate investment and operating company specializing in industrial and logistics properties. The firm acquires, develops, redevelops, manages and operates industrial real estate throughout the United States through a fully integrated platform that includes acquisitions, development, asset management, property management, construction management, and brokerage services. Sealy & Company currently manages more than $3 billion in assets and has completed over $8 billion in investment volume throughout its history.