SETT Snapshot
February 2026
Welcome to the February edition of the SETT Snapshot!
Drone delivery is moving from pilot programs to real operations. As the FAA advances the regulatory framework, expansion could accelerate and have real world implications for CRE.
IN THE MARKET
Drone delivery hubs are already operating in Dallas and Phoenix. If beyond-visual-line-of-sight (BVLOS) regulations normalize as the FAA intends, industrial sites with surplus land could become preferred nodes in emerging delivery networks. That has direct implications for the next generation of logistics real estate.
Operators like Wing, Zipline, and Amazon have already completed over a million commercial deliveries. Today, the commercial use case is focused on small, time-sensitive parcels within limited radii. The drones add a new layer to the last-mile stack and work alongside existing vans.
Why Ground Matters
Despite the rooftop imagery often associated with drone delivery, current operations launch from land adjacent to warehouses or retail sites. They require clear approach paths, open airspace, charging and battery infrastructure, and interior staging areas where parcels are sorted and queued for dispatch. While the idea of a drone hub feels like a novelty today, it is really a micro-fulfillment center with aviation capability.
Where the Real Estate Opportunity Lies
Logistics properties with surplus yard space hold a natural advantage, particularly if launch and recovery pads can be integrated without significant retrofit. IOS sites may also be well positioned, but land alone is insufficient. The real differentiator is operational optionality: flexible interior space, sufficient power capacity, robust connectivity, and circulation that allows integration of truck and aerial dispatch.
As BVLOS flights become standardized, service radii expand. At that point, assets capable of offering multimodal nodes for ground and aerial logistics could command stronger strategic positioning in site selection competitions, and a greater share of tenant demand.
The Risk–Reward Balance
Skeptics are right to question scale. Payload limits, weather and unit economics may keep drone delivery niche.
But logistics value often accrues at the margins and even modest adoption could elevate certain nodes within distribution networks. Owning adaptable properties preserves downside protection with potentially significant upside exposure.
ON OUR MINDS
The sky is not falling on CRE brokers: Despite CRE brokerage firms falling prey to the recent rotating AI scare, our (admittedly biased) view is that this is seriously misguided. Trusted human relationships matter more than ever, particularly when it comes to complex, high stakes deals. While it’s tempting to imagine future deals being negotiated by opposing Clawdbot armies, our view is that people will remain central to real estate transactions and those who will be most successful will be the ones who maintain their humanity and connection to one another, while leveraging the productivity and data advantages of AI tools.
Tariffs, tariffs, tariffs: Plenty of others have dissected the recent Supreme Court tariff ruling and its implications, but suffice it to say that we will continue to monitor the situation and don’t expect it to go away anytime soon.
WHAT. A. GAME. Congratulations to the USA Men’s Hockey Team for an incredible win. An amazing feat and a powerful reminder that, no matter our differences, moments like this bring our entire country together.
We remain grateful for your continued partnership and trust. Whether you're exploring new opportunities or navigating strategic decisions at the asset level, our team is here to support you every step of the way. If you’d like to take a deeper dive into any of the topics covered this month, don’t hesitate to reach out - we’re always happy to connect.