It’s been a bull run for the industrial real estate sector in recent years and industry pros expect that to continue in 2017. While new development levels are creeping up, leasing activity remains robust, occupancy rates at industrial properties are high and rents are continuing to grow.
The sentiment is based on the third annual survey of the industrial real estate sector completed by NREI. Year-over-year comparisons reveal where outlooks have changed—and where they haven’t.
Many respondents expect continued improvements in occupancy rates and rents. But now, with interest rates on the rise, a majority of respondents for the first time in the survey’s history expect to see a rise in cap rates.
The NREI research report on the industrial real estate sector was conducted via an online survey distributed to NREI readers in January. The survey results are based on responses from 276 participants. Of the total survey respondents, among the largest categories, 22 percent identified themselves as private real estate investors, 18 percent said they were in leasing and/or investment sales, 13 percent identified as building owners/managers and 13 percent identified as building owners/developers. In addition, 53 percent said they were owner/partner/president/chairman/CEO or CFO-level executives.