Archives

, , , Posted by on

Logistics Market Is Hot, But Is A Bubble Forming?

Investors can’t get enough of warehouses and logistics spaces these days, but there are some signs that a bubble could be forming.

Asset management firms including Blackstone Group, Cerberus Capital Management and KKR have doubled down on logistics centers, and prices for warehouses have surged, Bloomberg News reported.  According to real estate research firm Real Capital Analytics, values for industrial properties rose 8.5 percent in the past year, while retail real estate values fell 5.2 percent and offices stayed steady.

The intense interest in the niche sector has led some, including Jonathan Needell, CIO of Kairos Investment Management, to wonder whether logistics space is headed for a bubble.
Continue reading