X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Jennifer LeClaire

 

GlobeSt Net Lease Spring 2022Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.