Without a doubt, industrial stands head-and-shoulders above the other commercial property types as we enter 2018. A multi-year pattern of double digit returns, coupled with absorption rates exceed the pace of new development, have bolstered occupancy levels and rent growth in the majority of US markets. Even a slow pace of economic growth has supported strong improvements in net operating income, as older leases are re-set to market rates. In part propelled by ecommerce, and in part by global trade, warehouse and distribution, industrials continue to be a magnet based upon performance characteristics and solid user-market fundamentals.
The report discusses: