BY THE NUMBERS
CHICAGO—Avison Young just released a new research report that shows the added value in having a “cache tenant,” such as Amazon.com or FedEx, in a distribution facility. The company used Real Capital Analytics data through the third quarter and found Amazon.com and FedEx facilities sold for two to four times the US Treasury rate, on average, in recent years. “The presence of Amazon.com in an owner's distribution space provides the stability and long-term growth potential that investors crave,” said Erik Foster, an Avison Young principal and the leader of the firm's national industrial capital markets group. A review of the recent sales of facilities housing Amazon.com warehouse and distribution operations shows an average cap rate of 5.5% for 2016, 5.5% for 2015, and 5.6% for 2014. The 10-year Treasury note was 1.70%, 1.88% and 2.86%, respectively.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
