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It's a Dual Darling, not Dueling Darling

Many people are quick to name industrial or multifamily the darling of real estate investment, but in reality, they both are.

By Kelsi Maree Borland | kelsimareeborland | Updated on August 16, 2017

John Tipton John Tipton is an operating partner at Allen Matkins.

Where is capital flowing these days? The explosion of the industrial market—which has sub 1% vacancy rate and record-breaking rents in many markets—has some saying that it is the new darling of commercial real estate. The title was formerly reserved for multifamily, which is known for being the most recession-proof asset. The recent Allen Matkins/UCLA Anderson Forecast development survey showed that the fundamentals in both markets are strong and developers are bullish on both. With capital flooding to both sectors, it seems like we have two darlings of the market.

“It is a difficult questions to answer,” John Tipton, the operating partner at Allen Matkins, tells GlobeSt.com when asked which asset class he believes is the darling of commercial real estate. “There are different pockets of capital that are focused on different asset classes. There are certainly some investors that invest across asset classes for the very reasons that they want to remain diversified. Some investors have specialty niches, and by definition, others have diversified portfolios for offset risk.”

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