Marshall Loeb, CEO of EastGroup Properties, Inc. (NYSE: EGP), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Loeb outlined a positive outlook for shallow-bay industrial real estate, driven by long-term demographic and e-commerce trends. Demand strengthened through the fourth quarter, and the REIT is currently 97% leased, supported by new development leases. “Long term, we feel like we've got some really strong tailwinds that'll help our property type along,” he said.
Loeb emphasized a strategic focus on fast-growing ‘smile states’ such as Texas, Florida, Arizona, and the Carolinas, where population growth, worsening traffic congestion, and rising e-commerce penetration make last-mile locations increasingly valuable. Shallow-bay properties benefit from proximity to end users, which shortens delivery times and enhances competitiveness.
Loeb explained that the company’s development strategy is intentionally conservative and market-driven. Rather than building large speculative facilities, the company develops smaller buildings in phases, responding to tenant demand as it materializes. This “pull” approach reduces risk, limits capital exposure, and allows development to scale only when leasing momentum justifies it.
Looking ahead, Loeb sees strong potential for rent growth. Shallow-bay assets have significantly lower vacancy than the broader industrial market, while new supply is at multi-year lows due to zoning and permitting challenges, he pointed out.