Industrial Real Estate Trending Up
In Lynchburg, Virginia we’ve been big on industrial real estate for years because of the success our region has had in offering quality space and affordable prices. Since news broke last summer of the Prologis/Norges Bank mega deal, Industrial Real Estate has been trending everywhere else too. This joint venture agreed to pay $5.9 billion for KTR Capital Partners and its 60 million sq. ft. of U.S. industrial space. This followed last year’s purchase of Blackstone’s IndCor Properties and its 117 million-sq.- ft. portfolio by GIC, Singapore’s sovereign wealth fund. The transaction set records at a massive $8.1 billion, and became the largest transaction in the history of the industrial asset class.
Both deals represent an increasing interest in industrial real estate from in country as well as foreign investors. In fact, according to the National Real Estate Investor, “The two deals demonstrate a shift towards the continued institutionalization of the industrial investment landscape.”
So why now? Industrial real estate has always been the steady and less glamorous cousin of office real estate, but now it is looking more attractive than ever. Read more about this growing trend in Industrial Real Estate here.