With the recent launch of Private Real Estate Strategy via Liquid REITs ETF (PRVT), investors will be exposed to a sizeable allocation to industrial real estate which has been a cornerstone investment for several non-traded REITs.
The U.S. industrial real estate market is expected to see rising vacancy rates at the national level with Costar Group projecting 476 million square feet of deliveries over the next 12 months and approximately 300 million square feet of net absorption, implying that vacancy levels will rise modestly from current levels, but remain well below historic levels.
The torrid pace of rent growth experienced over the past several years should also moderate as retailers and wholesalers are pausing further inventory accumulation out of caution over the economic outlook. Pundits believe the pause in fundamentals will be relatively short-lived as construction starts on new industrial projects have also been plummeting since last fall, with developers increasingly concerned that higher interest rates are causing values of newly delivered projects to dip below replacement costs.
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Source: www.cnbc.com
ENB
Sandstone Group
