Industrial &
Warehouse
Distribution, logistics, and manufacturing facilities. E-commerce growth has driven exceptional demand, making this sector a top performer over the past decade.
What is Industrial Real Estate?
Industrial properties encompass manufacturing facilities, warehouses, distribution centers, flex industrial spaces, and data centers. E-commerce growth has driven exceptional demand for logistics and fulfillment centers, making this sector a top performer over the past decade.
The rise of same-day shipping and rapid fulfillment has transformed industrial real estate from a back-office sector into a critical component of the modern supply chain.
Key Characteristics
- E-commerce growth driving logistics demand
- Long-term leases with creditworthy tenants
- Low operating expenses for NNN landlords
- Potential for single-tenant diversification
- Growing demand for last-mile distribution
- Higher capital requirements for large facilities
- Evolving logistics technology impacts requirements
Typical Returns
Cap Rate
5% - 8%
Cash-on-Cash
7% - 14%
IRR
12% - 18%