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This Amazon warehouse in Ruskin, FL is one of many the e-commerce giant has opened in recent years. This Amazon warehouse in Ruskin, FL is one of many the e-commerce giant has opened in recent years.

MIAMI—The industrial market is booming on many fronts. But that doesn’t mean there aren’t real challenges as e-commerce changes the face of commercial real estate.

Jim Martell, president of Ridge Development, a private REIT in Chicago, sees pricing as the big issue today. The spread between the going-in yield and the exit cap rate in the industrial market is very thin, he tells GlobeSt.com, maybe 50 basis points or even less in some cases where the developer will do it for a fee. This would require an industrial developer to have a core buyer as a capital partner.

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Jennifer LeClaire



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