Even though the total number of business deals (M&A) in the distribution center market dropped significantly in 2025, the market isn't dead — it’s just becoming more selective, according to PMCF Investment Banking’s latest Distribution M&A Pulse. Big companies are still buying other companies, but they are only hunting for the highest-quality targets.

The report indicates that, at the end of 2025, there was a slump in deals, with global and U.S. deal-making galling by 36% compared to the previous year. But this was because buyers are being much pickier, and more strategic — about 85% of the deals were made by companies looking to grow their capabilities or market share for the long haul, rather than just investors looking for a quick flip.

Investors are ignoring smaller, riskier deals and putting their cash into large, established companies, the report found. They’re also focusing on “hot” sectors that aren't slowing down: artificial intelligence, data centers, green energy (electrification), and essential supply chain technology.

Looking forward, PMCF says the distribution center industry M&A market still has strong bones, partly because inventory levels are normalizing, and companies are accelerating investments in digital capabilities and automation. This is improving balance sheets, productivity gains and enhanced customer stickiness, reinforcing the strategic case for continued industry consolidation.