Logistics facilities defy CRE slump

Commercial real estate has struggled recently, but logistics facilities continue to thrive.

TODAY’S STORY

Commercial real estate (CRE) has performed poorly recently, suffering from declining prices and high vacancy rates. There have only been three periods of market drawdown, the latest being the current market.

However, logistics facilities remain positive outliers within the troubled commercial real estate sector.

One positive force behind this is that warehouses close to population centers have become increasingly crucial as U.S. shoppers purchase more items online and have become accustomed to prompt deliveries.

This trend has piqued the interest of private equity firms. Last week, Goldman Sachs Alternatives purchased a $293 million portfolio of warehouse properties comprising 21 buildings, 92% leased to 68 tenants, including Amazon and Red Bull.

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Kieran & Justin Ryan