Not surprisingly, investors of all kinds have decided to park their capital in and around the city, buying up not just the sparkling new distribution facilities, but also well-located older product that still attracts high-credit tenants. However, a few trends have emerged that may cause some investors to shy away, and perhaps head to secondary or tertiary markets in search of higher yields.
“People are becoming a little nervous,” Michael Marconi, principal and managing broker for Transwestern, tells GlobeSt.com. Rent growth, for example, after several years of robust gains, seems to have plateaued sometime in mid-2015. According to a just-published report by the firm, overall average rental rates remained at $5.54 in the third quarter. That is the highest amount ever, but it's unlikely to grow much in the near future, especially with so much new product hitting the market.
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