RCA in the commercial property press:

Surprising Players Pursuing Industrial Sector for Higher Yields

Real Estate Alert reports: Though it lagged the recoveries posted by the other property types as the market exited the downturn, the industrial sector has recently shown marked improvements in sales and fundamentals. The sector’s return to life has prompted offerings in the sector to spike as current owners realize demand for warehouse and flex industrial space is rising.

After Blackstone closed on three large industrial portfolios late last year for $1.7 billion, and has made other significant moved so far this year, other industrial players are looking to resume buying in the sector. It is even attracting firms that have not previously been active in the industrial arena; Cole Real Estate – historically active in just the office and retail sectors – has announced it will use its non-traded REIT, Cole Credit Property Trust 3, to actively pursue industrial asset opportunities because they are currently offering significantly higher yields than office properties. Real Estate Alert relied on data collected by Real Capital Analytics to state that over the past year, Cole Real Estate has “…acquired $134 million of industrial properties" and "...continues to be among the most-aggressive bidders” for industrial sector product.

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Posted by: Nina Turner

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