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“Risk-adjusted returns for CRE are favorable to other asset classes over the long term and provide investment diversification,” says Kenn Riggs at Situs RERC.
It was another record-setting year for Port Houston volume, and the emergence of the Gulf Coast as a globally low-cost petrochemical manufacturer leaves the industrial sector generally well-positioned entering 2018.
Thanks to demand from online retailers such as Amazon, industrial was also the only asset type in the NCREIF Property Index to post double-digit returns for 2017.
Tenants are trying to hedge against rising rents and lower vacancy, plus landlords are requiring longer terms in order to stabilize an asset or secure debt, JLL's Byron Foss tells GlobeSt.com.