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Real Capital Markets-SIOR Report: Industrial Strong, With Headwinds

December 2019

U.S. industrial investment is expected to continue at a steady pace into 2020, although headwinds created by tariffs and a slowing economy are beginning to gain steam, according to a new RCM-SIOR Industrial Investor Sentiment Report.

Investors are shifting strategies, however, to find safe havens against any market slowdown. Some industrial investors are adjusting their portfolios toward land-constrained markets that provide the potential for higher rent growth.

Among those strong industrial markets are:

  • Seattle
  • Miami
  • Northern New Jersey
  • Southern California

Other investors are moving back to core markets to minimize risk or are focusing on secondary markets where further cap rate compression is more likely, according to the report.

“Investors are projecting a steady flow of industrial activity in the U.S. for the foreseeable future, given the strong fundamentals and the stability this sector offers,” says Steve Shanahan, Executive Managing Director, RCM, a part of LightBox. “Investors are keenly aware of the potential for an economic slowdown but are focused on the long-term horizon and taking the steps necessary to protect their investments.”

The RCM-SIOR Report aggregated insights and perspectives from industrial market experts—investors, developers and brokers—across the country in compiling the report. The report shows that industry experts are thinking more strategically about their investments and decisions but are not pulling back from the industrial sector.

Among the recent stories on this report include: looks at the bright side of the trade turbulence.

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