Right now, the good industrial properties are selling at strong cap rates. 

"I would say the top 10% or 20%, which have an Amazon or FedEx thesis, have top-of-the-food-chain technology," Jonathan Needell, president and  chief investment officer of KIMC. "Those deals have traded at ridiculous cap rates. I have heard of sub 4% cap rates on that stuff."

But, Needell cautions that people shouldn't assume that assets across the industrial sector are trading at those frothy prices. "The reality is that not everybody can get a tenant like that, and not every property deserves a cap rate backed by those kinds of tenants [Amazon and FedEx]," he says.

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Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.