It might not seem like a very attractive time to own real estate in the warehousing, distribution or manufacturing business.
Not only have the last two years turned real estate, across the board, into an incredibly uncertain investment, but the Federal Reserve is also in the middle of a series of interest rate hikes that will make real estate financing more expensive. And yet, it’s still true to say that owning a warehouse, distribution center or factory can be an excellent investment for a small or medium-sized business.
Over the last few years, bolstered by an unprecedented boom in e-commerce and retail sales, the industrial sector has posted historically high demand and supply growth.
And that’s led some analysts to question how long the ride can last for the sector that’s relatively unaccustomed to such a meteoric rise. In short, some are wondering whether the current boom is a bubble or something more sustainable.
The industrial sector is expected to weather the economic ramifications of the COVID-19 pandemic better than other areas of the economy, according to an Industrial Sector Outlook report by Colliers.