CRE Investors May Surpass 2019 Record for Industrial Deals
2021 investment sales volume for industrial real estate is expected to exceed 2019’s record of $120 billion, according to a newly released LightBox-SIOR Industrial Investor Sentiment Report. Further, 71.7% of respondents surveyed expect investment levels to increase in 2022, with another 24.3% expecting levels to stay the same next year.
“As e-commerce continues to transform our economy, investors are looking for every opportunity to gain entry or expand their positions in the industrial sector,” said Tina Lichens, SVP, broker operations, LightBox. “The industrial sector is attracting significant amounts of domestic and foreign capital and is well-positioned to withstand supply chain disruption or other volatility that might occur.”
Although supply chain disruption, rising construction costs and material and labor shortages represent key headwinds for the sector, they’re not adversely impacting investor appetite, according to the LightBox-SIOR report. The e-commerce momentum that has driven industrial demand growth is expected to continue, the report states.
Pictured: Elion Logistics Park 55, part of a $1-billion partnership between Brookfield and Elion Partners.
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