Industrial REITs Experience Unprecedented Success
September 15, 2017 | John Egan | National Real Estate Investor
Bolstered by the surge in e-commerce, industrial REITs have become the belles of the industry ball.
Propelled largely by the e-commerce boom, industrial rents have grown more than 5.5 percent annually over the past two years in the top 50 U.S. markets, says Eric Frankel, lead industrial analyst at Green Street Advisors, a Newport Beach, Calif.-based firm. This year’s growth rate will be similar, despite more new supply coming on-line, he says.
“Besides Amazon, industrial REITs are perhaps best positioned to capitalize on the growth of e-commerce,” says Alex Pettee, president and portfolio manager of Hoya Capital Real Estate, an investment advisory firm.
The REITs benefiting the most from the e-commerce wave include Prologis, DCT Industrial Trust Inc. and Duke Realty Corp., industry observers say. The stock price of Prologis is hovering around levels not seen since its peak in 2007, while the stock prices of DCT and Duke are enjoying a several-year run-up.
