Pricing for industrial distribution and warehouse space climbed in many US markets during the past 12 months, as investors continued to focus on markets tied to large population centers, logistics and e-commerce space.
Once again in 2019, foreign investors in U.S. commercial real estate indicated they would most like to increase their allocations to industrial properties, according to this year’s survey by the Association of Foreign Real Estate Professionals (AFIRE), an organization promoting cross-border real estate investment.
Seventy-nine percent of 2019 survey participants said they would like to increase their exposure to U.S. industrial real estate, with multifamily investment coming in second, with 71 percent of respondents saying they would like to increase their exposure to the property type.
The industrial sector flourished in 2017.
Real estate research firm Real Capital Analytics (RCA) noted in a recent report that the industrial sector, seeing gains from rising e-commerce sales and the resulting need for industrial facilities, was the only commercial real estate sector last year that saw an increase in transaction activity from January through November.
NREI discussed possible trends to look out for in 2018 with several market observers.