Valuation & Advisory Industrial Investor Survey

Key Findings from Annual Industrial Investor Survey:

• ​Solid demand is expected to continue.
• ​Class A properties in the top core U.S. markets will continue to command more aggressive overall capitalization rates.
• Acquisitions are moving forward, but the deal flows have been reduced, as investors re-think their pricing strategies. However, more recently, both buyers and sellers have become more realistic with their expectations.
• ​As the Federal Reserve increases interest rates to combat inflation, the thin yields that industrial properties command made acquisitions difficult to underwrite.
• ​As vacancy remains historically low, and rents continue to rise, fewer owners are pressured to sell in a volatile market.
• Industrial fundamentals are expected to remain strong throughout 2023 and into 2024, with continued rent growth, albeit at a slower pace than 2022.
• ​Minimal concern is seen with the anticipated interest rate hikes relative to pricing.
• ​Logistics, food and beverage, cold storage and biotech/pharmaceutical assets are the preferred asset classes.​