1. The Global Pandemic: Unprecedented Economic Disruption Is Met With An Unprecedented Policy Response. CRE Should Hold Up Relatively Well

    Posted on April 14, 2020

    The Global Pandemic: Unprecedented economic disruption is met with an unprecedented policy response. CRE should hold up relatively well Unprecedented Economic Shutdown Current job losses are an intentional transfer of payroll from private to public sector – in the short term, incomes are more important than unemployment Traditional econometric models are less valuable in this […]

  2. The Great Moderation: Persistently Low Interest Rate Environment Expected, Supporting Asset Values

    Posted on October 9, 2019

    The Great Moderation: Persistently low interest rate environment expected, supporting asset values Interest rates in the U.S. have been falling steadily since the 1980s, and real rates have been near zero during much of the expansion following the GFC.  Notably, interest rates peaked during the early 80s, when the Baby Boomers were entering the work […]

  3. Well-Heeled Renter Households Soar: The Combination Of Lifestyle Choices And High Barriers To Homeownership Has Led To Booming Growth In Middle- And High-Income Renter Households.

    Posted on October 9, 2019

    Well-Heeled Renter Households Soar: The combination of lifestyle choices and high barriers to homeownership has led to booming growth in middle- and high-income renter households. In the first eight years of the expansion, the pool of middle- and high-income households increased by more than 8 million.  The growth rates were particularly impressive for high income […]

  4. More Room for Institutional Capital: Fragmented Ownership and Cap Rate Spreads Suggest Room for Further Capital Allocation

    Posted on August 3, 2019

    More Room for Institutional Capital: Fragmented Ownership and Cap Rate Spreads Suggest Room for Further Capital Allocation Over the past five years the industrial sector has dramatically outperformed the NCREIF Index, achieving an average annual return of 13.7% compared to 8.8% for the remainder of the index. Light industrial’s sharp rent and price appreciation has […]

  5. Transactions And Price Trend Higher: Transaction Volume And Pricing Trends For Light Industrial Buildings Suggest Investor Bullishness

    Posted on July 23, 2019

    Transactions and Price Trend Higher: Transaction volume and pricing trends for light industrial buildings suggest investor bullishness The persistent supply/demand imbalance within the light industrial sector is bolstering its appeal among a growing share of investors. Since 2010, both the number and average valuation of light industrial buildings traded have surged upward.  At the same […]

  6. E-Commerce: Growth In Online Commerce Is Setting Up Light Industrial Demand for Multi-Cycle Expansion

    Posted on July 16, 2019

    E-Commerce: Growth in Online Commerce is Setting Up Light Industrial Demand for Multi-Cycle Expansion As growth in online spending shifts retail inventory from stores to warehouses, the resulting boost to industrial demand is not as simple as a one-for-one trade out of brick and mortar retail selling space for warehouse space.  Instead, as transactions shift […]

  7. No Competition: Structural Barriers To New Construction Enhance Landlord Pricing Power

    Posted on May 21, 2019

    No Competition: Structural barriers to new construction enhance landlord pricing power There are a variety of structural barriers to building new light industrial space that limit its stock growth. Light industrial assets are typically found in dense, inner-ring urban locations, where land prices and local zoning regulations contribute to prohibitively high development costs. Having a […]

  8. Need for Delivery Speed: A New Focus On Speed To Consumer Has Online Retailers Setting Their Sights On Light Industrial

    Posted on April 14, 2019

    Need for Delivery Speed: A New Focus on Speed to Consumer Has Online Retailers Setting Their Sights on Light Industrial E-commerce emerged as a challenge to the traditional brick and mortar retail model in the late 1990s. As fledgling disrupters, e-commerce firms focused on price competition, attempting to attract consumers to online exchanges by promising […]

  9. Light Industrial: The Largest and Most Promising Segment of the Industrial Universe

    Posted on March 12, 2019

    Light Industrial: The Largest and Most Promising Segment of the Industrial Universe The supply chain continues to evolve. Large bay distribution hubs which drove efficiency gains through lower inventory-to-sales ratios have reached maturation. Now, distributors are focused on speed to the end consumer, which is driving demand for small bay warehouses close to population centers. The new industrial revolution arguably started in 2000 with thousands of containers […]

  10. Urbanization Accelerates: Growth In The Urban Cores Has Accelerated, Upping The Density Of Young Aspirational And Older High-Income Households In The U.S.’s Top Cities.

    Posted on January 22, 2019

    Urbanization Accelerates: Growth in the urban cores has accelerated, upping the density of young aspirational and older high-income households in the U.S.’s top cities. Reflecting both greater economic opportunity and lifestyle choices of the “demographic barbell” of Baby Boomers and Millennials, population gains, especially among young, college-educated workers[1], accelerated in the hubs of U.S. cities […]