Industrial real estate emerged as investors’ most preferred commercial asset class in 2018, as e-commerce growth continued to drive demand for warehouse and distribution properties across the country. In the second quarter, markets ranging from California’s Inland Empire to Columbus, Ohio made the list of places with the strongest industrial space absorption, according to real estate services firm Transwestern.
In fact, the need for space has been so great, many older properties in urban infill markets are being reconsidered for industrial conversions. However, cap rates on industrial assets moved down so far, there has been some concern the sector may be becoming over-heated. Though it doesn’t appear it’s time to worry yet, as industrial brokers believe the sector can still run on high for another two or three years.