As part of our first look at the CrowdStreet 2021 Investment Thesis, Chief Investment Officer Ian Formigle and Director of Investments Anna-Marie Allander Lieb shared their thoughts on the outlook and opportunities for industrial assets.
With the pandemic and associated stay-at-home orders only accelerating e-commerce growth, industrial was a bright spot in the market in 2020. Ian and Anna-Marie discussed the growing demand for industrial assets, including:
- How consumer preferences for faster service, propelled by COVID, caused a spike in demand for last-mile distribution centers;
- Why limited land availability keeps vacancy rates low and rents high across industrial properties; and
- The opportunities for investors across various risk categories including ground-up, Core commercial real estate investments are the least risky offering. They are often fully leased to quality tenets, have stabilized returns and require little to no major renovations. These properties are often in highly desirable locations in major markets and have long term leases in place with high credit tenants. These buildings are well-kept and require little to no improvements... More, and Core-plus commercial real estate investments are known as “growth and income” investments. The cash flow is less predictable, but they often predict a higher rate of return than core investments. The term "core plus" was originally defined as "core" plus leverage. Leverage is the use of borrowed capital to purchase and/or increase the potential return of an investment.... More.
Sign up for a free account to browse the latest Industrial deals on the Marketplace today.