Despite increasing valuations and compressed cap rates, industrial/logistics real estate remains “the prettiest girl at the dance,” says Mark Glagola, senior managing director of the Mid-Atlantic capital markets group at brokerage firm Transwestern. “Investors are buying at lower caps, but supply is overwhelmed by demand,” he notes.Read More
Over the last few years, industrial properties have risen through the ranksamong banks and other commercial real estate lenders to become financing’s new sweetheart property type. These include core market warehouse and distribution centers, refrigeration/cold storage centers, flex buildings, manufacturing properties and R&D facilities.Read More
Over the last few years, investor interest in industrial real estate has risen to a fever pitch.
Rent growth and cap rate compression are propelling investor interest in industrial properties, according to David Bitner, head of Americas capital markets research with real estate services firm Cushman & Wakefield. He notes that industrial asset values, including capital and appreciation, grew by 13.1 percent in 2017 alone, compared to 7.0 percent overall for all other commercial real estate sectors.Read More
Tight market conditions for United States-based warehouses and distribution centers continues to get even tighter, according to data issued by industrial real estate firm CBRE in its U.S. Industrial Availability Index, which was released this week. The availability rate in the first quarter dipped six basis points to 7.3%, which CBRE said marks the 31st consecutive quarter that availability has declined. And on an annual basis, the availability rate dropped 20 basis points annually.Read More
Some entrepreneurs are content to rent space for their businesses year after year, but others have been anxiously watching the residential housing market, hoping for an opportunity to take their commercial lease dollars and turn them into long-term equity in the real estate market. But will the residential bubble's slow leak (or impending collapse, depending on whom you talk to) make the next one to two years a good time to purchase commercial space?Read More
Los Angeles number one target, but smaller metros show strength.
"Despite the possibility of escalating interest rates, the vast majority of investors intend to acquire assets in the Americas in 2018. Risk tolerance is expected to remain unchanged, but investors' search for yield and asset diversification is pushing them toward value-add assets, secondary markets and "alternatives" in 2018," said Brian McAuliffe, President, Institutional Properties, Capital Markets, CBRE.Read More