Brad Simpkins

With amounts large and small, investors are finding ways to continue to ride the industrial asset class and its long-standing winning streak. And little wonder. According to a market report by Black Creek Group, core industrial real estate — that is, high-quality warehouses that are fully leased to creditworthy tenants — has delivered the highest returns of the main property sectors throughout the current economic cycle producing 13.06%, 13.42%, 13.2% and 7.7% total returns on a one-, three-, five- and ten-year basis, respectively.

E-commerce, of course, is a driving factor behind this growth.

“While the traditional port-driven warehouse markets continue to grow at a consistent pace, online commerce is accelerating demand for state-of-the-art facilities that can facilitate same-day and one-hour deliveries in major metropolitan areas across the US,” said Brad Simpkins, portfolio manager of TH Real Estate's US Strategic Industrial Fund I. “A supply shortfall in these facilities coupled with healthy economic growth has generated significant pent-up demand for these industrial properties.”

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.