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**Understanding Reshoring and Industrial Space Demand**
In early April 2025, President Donald Trump signed Executive Order 14257, titled “Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits.” Along with the signing, he made a public declaration of “Liberation Day,” emphasizing that reciprocal tariffs would drive U.S. companies to bring their manufacturing operations back to American soil.
The expectation was that reshoring efforts would immediately follow, triggering investment surges into domestic facilities and job creation. However, industry experts caution that reshoring is not a new or instant solution—it has been a gradual process, already underway for years, and one that demands sustained strategic planning and resources.
Jeff Thornton, Executive Vice President and Head of the Central Region at CenterPoint, recalls a slowdown in industrial leasing activity shortly after “Liberation Day,” noting a four- to five-month period of cautious tenant decision-making. “We saw a definite decline in new deals, renewals, and expansions,” he said. Over time, however, activity began to rebound, with leasing and absorption increasing as tenants resumed long-term strategic planning.
Jordan Nathan, Faropoint’s Head of Corporate Investments, clarified that reshoring has contributed to steady industrial demand, particularly for manufacturing-adjacent and regional distribution spaces. However, he noted that it’s yet to match the volume of new industrial supply delivered over the past few years.
**The Reshoring Resurgence: Already Underway**
Reshoring is essentially the reversal of the long-standing trend of offshoring, which took off in the mid-20th century as companies sought lower-cost production through international labor markets. Rising costs in these markets by the mid-2000s, combined with vulnerabilities exposed during the pandemic, have since prompted many manufacturers to return operations to the U.S.
“Reshoring, nearshoring, and supply-chain diversification continue to support industrial demand, especially in sectors like manufacturing, distribution, and logistics,” said Ryan Butler, Regional Managing Director at Northmarq. According to an October 2025 KPMG survey, 63% of companies were considering reshoring their operations to the U.S., but only 10% had taken decisive steps.
Elizabeth Holder, Industrial Senior Analyst at JLL, noted that government incentives have helped accelerate U.S.-based manufacturing initiatives. “The tangible effects of nearshoring are visible as policy measures continue to boost corporate investment in American industrial projects,” she said.
**More Than Just Factories**
Modern manufacturing isn’t just about building facilities—it requires reliable infrastructure including labor, materials, and logistics networks. The KPMG survey noted that tariffs have increased material costs, which in turn has restrained new hiring. At the same time, companies are investing in upskilling their existing workforce through targeted training programs.
Steve Reents, Managing Partner and U.S. Chief Investment Officer at BGO, agreed that the rising costs and uncertainty around tariffs have reshaped supply chains and logistics. “Supply-chain diversification is reshaping how logistics space is utilized and where it’s located,” he said. Demand for tech-enabled industrial properties that streamline regional distribution has surged, especially in the wake of the pandemic.
According to survey data, 62% of respondents are actively reconfiguring their supply chains to improve operational efficiency.
**Looking Ahead**
Reents emphasized that reshoring and nearshoring will continue to influence real estate demand in 2026—not as a temporary trend, but as a long-term structural shift. These changes are propelling investment into advanced manufacturing and warehouse facilities suited for modern logistical needs.
Thornton echoed the sentiment, observing rising demand for real estate in key port markets such as Southern California, Savannah, and New York/New Jersey. Inland hubs including Dallas, Chicago, and Atlanta are also experiencing growth. “The need for manufacturing, logistics, and warehousing in both coastal and inland locations will remain strong,” he noted.
Holder pointed out that raw material providers and logistics networks will see an impact as third-party logistics (3PL) companies continue to expand to accommodate reshoring-led demand. “3PL users are ramping up to meet the new needs of domestic production and the ongoing growth of e-commerce,” she said.
However, challenges remain. Chief among them is labor. “The competition for skilled labor, from specialized warehouse workers to construction tradespeople, will likely intensify and may place upward pressure on wages and project timelines,” Holder added.
In short, while reshoring is not a silver bullet, it is an enduring trend that is reshaping industrial real estate, renewing U.S. manufacturing, and challenging companies to invest in people, processes, and infrastructure to remain competitive in a changing global economy.
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