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Industrial’s Eye-Popping Numbers Will Be Tested By Interest Rate Hikes

Deal flow could moderate if banks become more conservative or if buyers demand higher yields.

By Lynn Pollack | May 24, 2022 at 02:55 PM

The industrial asset class has been on a tear since well before the pandemic began, and the sector has seen enormous growth since 2020, when more customers than ever before began shopping online. 

But eye-popping pricing and deal flow will likely be tested by the recent increases in interest rates and financing costs. Since the beginning of the year, the 10-year Treasury rate has ticked up by 150 basis points, and the Fed has indicated that a series of additional interest rate hikes are on the horizon for 2022.

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