Industrial Cap Rates Continue to Decline

DENVER—The industrial sector nationwide is seeing declining vacancy rates and increased development, which has caused cap rates to drop since the beginning of the year, Bill Hankowsky, chairman, president and CEO of Liberty Property Trust in Malvern, PA, tells GlobeSt.com. Hankowsky will be speaking on the industrial development panel during NAIOP’s Development ’14 conference here later this month, and we spoke with him about the trends he is noticing in this realm.

“There are a handful of trends that everybody is focusing on,” says Hankowsky. “One is simply that the fundamentals of industrial space are solid and remain so. There’s a good demand for industrial space, absorption remains positive each quarter, vacancy is down nationally and rents are going up nationally.”