The Reality of Industrial Real Estate in 2026

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Industrial real estate continues to outperform, but only for operators who understand the details that most investors miss.

In this episode of Broker Brunch, Mitchel Flaherty sits down with Zach McHugh (Sitex Group) and Jack Shulman (B&D Holdings) to break down what is really driving today’s industrial market.

From shallow bay demand and IOS strategy to sale-leasebacks, environmental risk, and the flood of institutional capital entering the space, they share how experienced owners consistently win while new entrants get caught by hidden risks.

They also unpack why functionality beats flash, why multi-story industrial struggles in NYC, how PFAS contamination can kill deals overnight, where Florida is outperforming New York, and why 2026 could see a major surge in leasing and transaction velocity.

If you invest, broker, or operate in industrial real estate, this is a practical look at what actually matters on deals today.

Connect with us on LinkedIn:
Brian Whelan:   / brian-whelan-43155850  
Mitchel Flaherty:   / mitchel-flaherty-7b4b1064  

(00:00) Intro
(00:48) Backgrounds and Investment Focus
(04:57) Shallow Bay Explained and Why It Always Wins
(06:07) Why Multi-Story Industrial Doesn’t Work in NYC
(10:21) IOS (Industrial Outdoor Storage) Breakdown and Value Drivers
(14:35) Buying in the Path of Redevelopment vs Pure Industrial Zones
(17:42) Florida Strategy and High-Growth Markets
(19:33) Environmental Risks, PFAS and How Deals Die
(24:47) Institutional Capital Flooding into Industrial
(29:06) Debt Markets, Financing and Execution Speed
(30:59) NYC Policy Risk and Last-Mile Regulations
(34:06) 2026 Predictions and Where the Market is Headed