NEW YORK CITY-Industrial investors and developers should have minimal problem securing equity and debt financing in 2008, according to a quick sampling of real estate professionals. “Industrial has been very much in favor in terms of financing, and it continues to be in favor,” affirms Spencer Garfield, managing director of Hudson Realty Capital based here. “Industrial doesn’t get the kinds of headlines other sectors do, and that’s shielded it from the worst impacts of the credit crisis.”

Garfield calls industrial the “bread and butter” of the investment world, a reliable product that is always needed and less subject to fluctuations in demand. “Where there have been huge run-ups in prices and lowered cap rates on other asset types, industrial has not moved that much, so it’s not going to fall off that much,” he says.

Cary Krier, senior vice president in the Dallas office of Jones Lang LaSalle, agrees with Garfield’s assessment, but he emphasizes this doesn’t mean the credit crisis has had no impact at all. “The assumptions we’re building into models today are very different from a year ago,” he says. “Everything has to cash flow now. You can’t get by on expectations of large rent increases. You have to show income from the start.”

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