Considered the darling asset class of 2020, industrial real estate remained strong throughout the pandemic thanks to a massive spike in online sales. In fact, it’s done so well that industrial is now at a lower cap rate than multifamily, which basically means that the barrier to entry is much higher thanks to skyrocketing prices and a massively under-supplied market. In our June 2021 livestream, Chief Investment Officer Ian Formigle explains how the strong rent growth for industrial means that many sellers aren’t selling and a premium has been placed on the properties that are. While we think entry into this market will be tough, there is a reason industrial projects performed the best during the pandemic and investors should be on the lookout for these investment opportunities.
Learn more about our outlook for industrial in our Investment Thesis.