Early on during the pandemic, industrial looked like it would bethe beneficiary of the market dislocation. Now, more than threemonths in, asset prices have proven that to be true. While otherasset classes have seen a significant change in asset pricing,industrial has seen a flat or nominal change in prices. As aresult, CapRock Partners, a West Coast industrialinvestor and developer, has remained an active player.

"We are an active buyer in the marketplace," JonPharris, president of CapRock Partners, tells GlobeSt.com."Through the pandemic, we have been buying assets, and we havemultiple properties scheduled to close this summer. There has beena very slight pricing change across the marketplace in industrial,unlike other asset classes that have had very significant pricingchanges. The demand drivers for industrial have been the same, andwe are not expecting significant price changes."

Pricing adjustments in industrial have not been widespread, butrather have focused on specific asset classes. Small box, forexample, is more exposed to pricing adjustments than big box andecommerce-serving properties. However, properties with fundamentalbusiness challenges—cash flow problems, vacancy, short-termleases—are seeing the most significant pricing adjustment. "Thepricing adjustments in the marketplace really vary based on thetype of the asset and the quality of the asset and the quality ofthe tenant," says Pharris. "There has been a real flight to qualityduring the pandemic, and the newer projects that are stabilized andhave institutional quality tenants have had no price change. Theproperties that are in some sort of a transition have been the mostimpacted."