Before the pandemic, industrial properties were a more of a snack than a main course among real estate’s primary food groups, but investors’ voracious appetite for the sector may result in it occupying a larger place in their portfolios.
It’s not just massive firms like Blackstone Group and Prologis that are throwing billions of dollars at warehouses — foreign investors are also pouring money into the booming industrial sector.
Investment firms from France, Germany and South Korea are among those that have recently inked big deals for industrial properties, according to the Wall Street Journal. That comes even as overall foreign investment into U.S. real estate has plummeted due to the pandemic. Real Capital Analytics pegged that total as down by 31 percent in 2020. Continue reading
On its recent fourth-quarter earnings call, management from logistics real estate giant Prologis Inc. said strong demand from the second half of 2020 has continued into the new year.
“We entered 2021 with optimism and confidence,” commented CFO Tom Olinger.