Industrial Investments: Demand Outpacing Supply

DALLAS-At the end of 2012, Jack Fraker, CBRE‘s managing director of the company’s Capital Markets Industrial Practice and vice chairman with the Investment Properties-Institutional Group told GlobeSt.com that cap rates among industrial product would continue to compress throughout 2013, complete with strong sales volume. Halfway through the year, Fraker stands by those statements for a variety of reasons.

For one thing, the demand for industrial properties is far outpacing the available supply. “It’s something like a 4:1 or 5:1 imbalance,” Fraker tells GlobeSt.com in a recent interview. “A lot of capital wants to be in real estate, but there aren’t a lot of available deals on the market. The competition is resulting in a downward pressure on cap rates.”