New industrial facilities are mushrooming all over, but there still aren’t enough of them to halt the rent hike. That’s only scratching the surface of why accredited investors need to keep an eye on industrial real estate in 2023, especially after the latest Deloitte outlook on commercial real estate.
It shined a new light on the current trends – the growth of e-commerce is driving the demand for warehouse space up and it’s being built on an unprecedented scale. But it’s still not enough. Rents for industrial real estate climbed 16% last year. And more of the same can be expected for this year. The Real Estate Market Consequences Of One-Day Shipments
Deloitte’s analysts expect the share of e-commerce sales to go up by 13% and top 33% by the end of 2031. Such a shift would necessitate a pace of industrial real estate development that we will most likely not see for two major reasons. In Deloitte’s words, “anticipated continued high cost of land and construction, as well as expected zoning limitations for centrally located facilities should heighten the competition for existing space.”
Furthermore, the Head of Commercial Real Estate Economics at Moody’s Analytics, Victor Calanog, said, “e-commerce will likely serve as a tailwind for the logistics industry—and industrial warehouse and distribution properties—for at least 10 years.”
Investment directors over at Crowdstreet have taken note of that and found some promising opportunities in the industrial real estate space to provide investors with exposure to this booming asset class.
Crowdstreet puts thousands of commercial properties through a rigorous vetting process that entails both real estate and investment veterans. Only a fraction of the properties make the cut. The shares of the listings are then offered to accredited investors who often see returns that exceed 20%.
If the analysts are right, the following industrial real estate listings from Crowdstreet will likely do the same. 1. Mercantile Industrial Park, Sacramento MSA
This 18-suite industrial park’s optimal positioning and amenities have resulted in 100% economic occupancy. The sponsor has a proven track record of bringing outsized returns on similar projects. Additionally, the company used its familiarity […]
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