Valuation & Advisory Industrial Investor Survey

Key Findings from Annual Industrial Investor Survey:

• ​Investors continue to see strong demand for industrial assets in 2024.
• ​Steady demand is expected to continue, and the Coastal (Port Cities), Southwestern and Southeastern regional markets are expected to continue their growth level but at a more normalized level compared to 2023.
• ​Class A properties in core U.S. markets will continue to command more aggressive overall capitalization rates.
• ​Value-add projects with shorter weighted average lease terms, ideally close to 3 years or less, are on investors‘ radars.
• ​Industrial fundamentals are expected to remain solid throughout 2024 and into 2025, with continued rent growth, albeit at a more normalized pace than 2022 and 2023.
• ​At the time of this survey, there is minimal concern about the possibility of the Fed increasing interest rates, as most investors anticipate a rate reduction in the second half of 2024.
• ​Traditional lending on speculative construction is starting to surface, with life companies and private equity filling voids in bank financing.
• ​Logistics, food and beverage, cold storage, biotech/pharmaceutical and data center assets are the preferred asset classes. However, e-commerce is clearly driving the demand as online shopping continues to accelerate, with the infusion of AI driving supply chain efficiencies.