Investors in the sector have been more reluctant to close deals as the cost of capital rises. But given a strong outlook for income growth, many acquisitions are still going through.
All through the pandemic, industrial properties have been among the most desired by commercial real estate investors. But in the current market environment, are industrial assets holding up just as well?
In fact, demand for industrial properties is down considerably from the first quarter of this year, says Chris Riley, president of U.S. industrial & logistics capital markets with real estate services firm CBRE. “While the market for investment sales is uneven, there remains a small contingent of investors that possess a ‘motivation of the moment’ to acquire properties,” he adds, noting that CBRE National Partners closed 18 transactions in October—evidence that the market is still active....
RSK: A few things come to mind here. First, lack of new construction and increase in interest rates. Also the cutback by some major players in the amount of space needed as the logistics of delivery keeps honing itself.
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- - Volume: 10 - WEEK: 48 Date: 11/22/2022 8:46:29 AM -