There are emerging niches in the industrial real estate sector that are all primed as significant growth areas. The three most promising are outdoor storage, cold storage and facilities that support electric vehicles.
According to Green Street’s latest industrial sector update, the eport authors point to cold storage demand, rising NOI forecasts and cash-releasing spreads — especially at Prologis — and Houston and East Coast port activity.
Although IOS is seeing growing demand in line with the broader industrial property boom, it is still a volatile market with demand and rents accelerating faster in upcycles but also performing worse during economic downturns. And one of the reasons IOS tends to suffer disproportionately is the overall weaker tenant profile.
Lines are starting to blur with small properties. Investors that typically make small buys are starting to buy larger properties. And, some investors specializing in large assets are looking at smaller deals in the most popular property types, according to a new report from Green Street’s Real Estate Alert.