REITS: Industrial Properties Look Promising On These Trends

April 3, 2020 | News, Real Estate

Industrial REITs look attractive, but the market selloff been brutal.

While real estate markets taking hits, these assets may be a case of the baby being thrown out with the bathwater.

Like most Real Estate Investment Trusts, the prices of industrial REITs have declined sharply in the coronavirus driven selloff in the equity markets. While there may be real concerns for some sectors of real estate like office space, shopping centers, and even multifamily properties, industrial real estate may well see a dramatic increase in demand for the properties they own and manage.

Industrial REITs Trends

Increasingly industrial properties have been the chosen place for e-commerce companies like Amazon (AMZN) to store material and operate their delivery business.

Industrial properties are the last mile of the e-commerce industry.

While e-commerce has been growing for some time, the shutdown across many parts of the United States has created new demand for products delivered directly to the home. Even if people want to shop right now, many stores are closed, so consumers have to turn to e-commerce companies.

Industrial real estate is also going to see increasing demand for space as a result of the continued increase in the number of states that are legalizing cannabis for medical and recreational purposes.

The industry needed warehouses to store supplies and operate dispensaries. In many towns, cannabis dispensaries are something of a not in my backyard business, and increasingly industrial parks have been the solution to the problem that works for both the citizens of the town and the cannabis companies.

E-commerce and cannabis were tow of the hottest trends in the economy before the pandemic. The usage of both has grown during the shutdown and stay at home orders that have been issued in most regions of the United States.

The demand will continue to grow as we all realize that Pandemics may be a part of life in a global economy. That will keep demand high for industrial properties and help generate high levels of cash flow for the industrial REITs.

By: Tim Melvin

Related: Blackstone Group Buys Colony Industrial for $5.9 Billion

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

May 21, 2020

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Latest Alternative Investment News
Artificial Intelligence: Marty the Robot Hunts for Spills in Supermarket Aisles
May 26, 2020     Artificial Intelligence, News

Marty the supermarket robot is rather smart. Armed with three high-resolution cameras, computer vision, navigation systems, numerous sensors, and smart AI software, Marty is able to sidestep shoppers and pinpoint…
Venture Capital: The U.S. IPO Drought May be About to End
May 26, 2020     News, Venture Capital

As this is being written, the Dow is up nearly 600 points and the S&P 500 is above the psychological 3,000 mark. The markets are up as investors cheer the…
FinTech: Swiss Banking Giant UBS Homes in on Fintech Investing
May 26, 2020     FinTech, News, Venture Capital

Swiss banking giant UBS Group AG (NYSE: UBS) is planning to invest hundreds of millions of dollars in upstart fintechs through a proposed corporate venture capital fund. According to a…
Digital Assets: In India, RBI Confirms No Ban on Crypto; CoinDCX Raises $2.5M; Crypto Volumes Fly
May 26, 2020     Digital Assets, News

The Reserve Bank of India, the Indian central bank, confirmed that there currently exists no banking ban on the crypto industry in India. CoinDCX, India’s largest cryptocurrency exchange, gained a…

Scroll to Top