The “INDUSTRIAL” sector of the commercial real estate industry is in high demand!
Industrial has been one of the most resilient sectors during the COVID-19 crisis, as more people turned to online shopping. According to CBRE, demand for industrial space has exceeded supply for 42 consecutive months now, with net positive absorption of nearly 57 million sq. ft. in the third quarter, bringing total space absorbed year-to-date to about 120 million sq. ft. The demand is a direct result of the accelerated growth rate at which customers are utilizing online shopping resources for goods and necessities. This has greatly affected the chain of supply and as a result driving asset values to record highs, particularly last-mile properties in core urban markets. One of the most coveted assets on the market for nearly all investor types are last-mile industrial buildings and logistic facilities in urban markets close to dense populations. While according to CBRE’s Q3 Capital Market report, single-tenant industrial assets are the most popular, representing $11.3 billion in transactions out of total industrial investment volume during the quarter.
A variety of investors are now exploring the industrial market due to this growing trend that experts predict long-term ROI, rent growth opportunities and stability in the marketplace. For example, Investcorp, a global investment manager specializing in alternative investments, New York-based Lightstone, a private real estate developer/owner, and PGIM Real Estate, a New Jersey-based real estate investment manager all recently acquired industrial assets.
Check out this article, https://www.nreionline.com/industrial/bidding-wars-underway-last-mile-industrial-assets “Bidding Wars Underway for Last Mile Industrial Assets,” by Patrick Hardy in National Real Estate Investor and learn more about why all types of real estate investors are seeking out industrial space.