The movement to bring manufacturing back to the United States is reshaping commercial real estate, especially in the small industrial sector. While headlines spotlight massive factories and billion-dollar projects, a significant opportunity is emerging for developers and investors focused on smaller properties.
Daniel Levison, CEO of CRE Holdings USA, has spent over 40 years in commercial real estate, transitioning from tenant representation to principal investment. His firm has acquired more than 30 buildings valued at nearly $100 million, with a sole focus on shallow bay industrial properties under 50,000 square feet. This specialization has allowed CRE Holdings to benefit from trends that many large institutional investors ignore.
“The current administration is focused on creating onshoring opportunities and bringing manufacturing back to the U.S.,” Levison says. He notes that many manufacturing facilities require spaces under 50,000 square feet, a segment often overlooked in broader investment strategies.
Specializing in Small Industrial Properties
CRE Holdings operates through three main business lines: developing or acquiring small industrial buildings in the Southeast, brokering investments in leased industrial properties nationwide, and helping occupiers purchase industrial space. About 70% of the company’s activity is principal investment — buying and building properties for its own portfolio.
This focus on smaller buildings is intentional. According to Levison, small industrial real estate is less volatile than other commercial property types. “There’s always going to be a need for storing and making products,” he says. The firm deals primarily with entrepreneurs and small businesses, which have benefited from recent legislation aimed at supporting domestic manufacturing.
CRE Holdings’ approach stands in contrast to institutional investors who pursue larger, more visible projects. “We don’t deal with big institutional businesses. We deal primarily with entrepreneurs,” Levison says. This segment is often underserved by major firms, allowing CRE Holdings to fill a gap.
Targeting Manufacturing Job Centers
CRE Holdings’ investment thesis centers on proximity to new manufacturing facilities. The firm seeks land within 10 miles of large plants expected to create at least 3,500 jobs. “3,500 jobs translates into about 10,000 new people moving to an area,” Levison explains.
This influx of workers drives demand for housing and the services that support new residents. Large manufacturers often choose rural communities for tax incentives, but the resulting population growth strains existing housing and service infrastructure.
“You see a lot of multifamily housing and starter homes built,” Levison says. Local service providers — HVAC, plumbing, and maintenance companies — are quickly overwhelmed by the sudden surge in demand. “All of a sudden you’ve got 10,000 new people moving to this area.”
This environment creates openings for regional entrepreneurs who can step in to meet the needs of a growing population. CRE Holdings targets these businesses as tenants or buyers for its properties. “It generates the need for smaller, entrepreneurial regional companies to get a piece of that business. Those are the people we do business with,” Levison notes.
Land Positions Near Major Plants
CRE Holdings holds land near several major manufacturing developments. In North Columbia, South Carolina, the firm owns 10 acres just two miles from Scout Motors’ facility, scheduled to open its first phase in fall 2026. Near Madison, Georgia, CRE Holdings is seven miles east of the planned Rivian plant. The company is also evaluating sites near Savannah, Georgia, close to Hyundai’s new facility.
“We look for 10 to 20 acres where we can build four or five 10,000 to 40,000 square foot buildings in a small park,” Levison says. Most potential occupants prefer to own rather than lease, yet little existing warehouse inventory exists in these areas, making new construction the only option.
This build-to-suit strategy fills a clear market gap. Existing industrial properties have become expensive, pricing out many entrepreneurs. Levison says he has not purchased an existing building for renovation in four years due to high prices. Building new facilities in growing markets, by contrast, remains financially feasible and meets real demand.
Navigating Capital and Investor Caution
Current market conditions offer both promise and obstacles. “There’s money out there, but it’s harder to raise. Investors ask more questions,” Levison says. He attributes some of this caution to shifting government policies and concerns about the broader economy.
Despite this, industrial real estate is seen as a safer investment than office or retail. “Industrial real estate is seen as less risky than office and retail. In general, multifamily and industrial are considered safer bets in the commercial market,” Levison says.
To adapt, CRE Holdings gradually brings new investors into each project. “We try to add a new investor or two in every deal,” Levison says. He encourages new investors to spread capital across several projects rather than concentrating it in one, reducing risk and building long-term relationships. “Everyone that’s followed that strategy, we’ve more than made up for it on the other deals,” he says, noting that the firm has lost money only once or twice out of about 30 deals.
Office Market Splits by Class
While CRE Holdings is focused on industrial assets, Levison’s experience gives him perspective on the broader commercial landscape. Class A office buildings in prime submarkets are performing well. Occupancy is tightening as companies offer upgraded spaces to attract employees back.
“It’s a flight to quality,” Levison says. Businesses are willing to pay premium rents to encourage employees to return. Lower-tier Class B and C properties, however, are struggling to retain tenants. “Owners of those buildings are probably trying to figure out alternative uses, because they’re never going to get back to the 85% or 90%-plus occupancy they used to enjoy,” Levison observes.
Uncertainty Slows Decision-Making
Throughout his analysis, Levison emphasizes the impact of uncertainty on decision-making in commercial real estate. “Uncertainty is the kiss of death in commercial real estate,” Levison says. Entrepreneurs can plan for good or bad conditions, but when the outlook is unclear, they tend to hold back.
This hesitation shows up in tenant behavior. Businesses that might otherwise expand often choose to renew existing leases rather than make new commitments when the economic outlook is uncertain.
Outlook: Policy-Driven Opportunity
Despite ongoing uncertainty, Levison remains confident in the outlook for small industrial properties, especially as domestic manufacturing receives continued policy support. “There’s a lot of opportunity because of what our administration wants to do. They want businesses to onshore and build products here, so we’re not at the mercy of global trade or China,” Levison says.
Levison cautions that the benefits of onshoring depend on policy consistency. “If they’d stick with their plans, it would be good. But I’m not smart enough to know how geopolitical situations will play out long-term.”
For now, CRE Holdings’ strategy is clear: invest near major manufacturing facilities and serve the entrepreneurs who support these growing communities. “That’s where our current focus is, and I feel it will be a big part of our focus for the next three to five years,” Levison says.
Building a Sustainable Investment Model
As American manufacturing returns, the demand for small industrial buildings is poised to grow. Developers and investors who target these properties, rather than chasing only the largest deals, are positioned to benefit from the next wave of economic growth. By following major manufacturing investments and serving the businesses that support them, firms like CRE Holdings are building a model for sustainable success in a changing landscape.
About the Expert: Daniel Levison is the CEO of CRE Holdings USA, a commercial real estate firm specializing in shallow bay industrial properties under 50,000 square feet in the Southeast United States. With more than 40 years of experience in commercial real estate, Levison has led the acquisition of more than 30 buildings valued at nearly $100 million, focusing on serving entrepreneurs near major U.S. manufacturing hubs.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
