2026 Industrial Review: Mike Truesdale, Cummings Properties

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026? The most significant trend is the continued evolution of suburban industrial properties toward higher and better uses. Owners are reposi-tioning well-located assets to serve advanced manufacturing, logistics, and technology-driven businesses rather than more traditional indus-trial users. At the same time, power has become a critical competitive advantage, as electrical capacity and utility infrastructure now greatly influence leasing and development decisions. As AI, automation, and advanced manufacturing expand, developers who can modernize exist-ing assets and deliver the infrastructure these businesses require will be best positioned to attract them.

What trends or shifts have stood out most to you so far this year within your industry? Our leasing team is seeing strong activity from a diverse group of users that extends well beyond traditional warehouse and distribution. Technology companies and recreational businesses are especially active in the suburban market. We also see high demand from churches, schools, daycare providers, and fitness operators as they continue to recognize the value of well-located suburban properties. These organiza-tions often require customized layouts rather than conventional office or warehouse space. As a result, we remain focused on reconfiguring existing buildings to accommodate specialized requirements while helping businesses grow without leaving the communities they serve. The adaptability of today’s industrial properties is one of the sector’s greatest strengths.

What challenges or opportunities have had the biggest impact on your business during the first half of 2026? One of the biggest challenges today is aligning client expectations with current market realities. Businesses often underestimate the cost of adapting industrial space to support modern operations, particularly when significant electrical upgrades or specialized modern infrastruc-ture are required. Construction costs remain elevated, making buildouts more expensive than many anticipate. We also spend considerable time educating prospective clients on lease economics. Companies transitioning from a triple net lease structure often experience sticker shock when evaluating modified gross leases, even though the comparison is far from apples to apples. It is important for clients to consider total occupancy costs—not just rent—when weighing their options.

As we look ahead to the second half of the year, what are you watching most closely? We see significant opportunity in repurposing well-located office properties to support modern industrial and technology users. Many businesses no longer fit neatly into traditional real estate categories. With strategic improvements, such as enhanced electrical infrastructure, reinforced or specialty flooring, and flexible interior layouts, traditional office facilities can often accommodate R&D, engineering, light manufacturing, assembly, and other innovation-focused operations. Repositioning existing assets is frequently faster, more sustainable, and more cost-effective than ground-up development, creating value for both property owners and growing businesses.