Will Eglin, chairman and CEO of LXP Industrial Trust (NYSE: LXP), sat down for a video interview at Nareit's REITweek: 2026 Investor Conference in New York, June 1-4.
Industrial real estate fundamentals remain healthy even as the sector settles into a more normalized operating environment, he said. Eglin added that LXP continues to benefit from its focus on logistics facilities in high-growth markets, where tenants are making long-term investments in automation and supply chain efficiency.
"The best assets to own are the kinds of facilities that we specialize in," he said. "Large format logistics facilities with Class A specifications."
While e-commerce remains an important source of demand, Eglin noted that industrial leasing activity has broadened. "E-commerce penetration is still an important demand driver for tenants," he said, adding that advanced manufacturing projects and data center-related construction are also generating leasing demand across LXP's footprint. About 80% of the company's portfolio is located in the Sun Belt, with additional exposure to lower Midwest logistics markets.
Eglin also highlighted the strength of LXP's market selection strategy, noting that 10 of the company's 12 target markets rank among the top 15 nationally for trailing net absorption.
Looking ahead, Eglin believes development will become an increasingly important driver of shareholder value as new supply moderates.
"The greatest opportunity for us is development in our land bank," he said.
After several years of elevated industrial construction, LXP recently launched its first development project in several years in Phoenix, which was quickly pre-leased. Eglin said the project is expected to generate an attractive return for shareholders as market conditions continue to improve.