Rexford Industrial is confident that its portfolio well positioned to perform through to imminent downturn. The Los Angeles-based REIT focuses on small, infill industrial assets in Southern California, which have a history of outperforming big box assets during recessions. On the company's first quarter earnings call, leadership discussed the portfolio's strength to weather the COVID-19 storm.
"While on a global scale, one might expect larger tenants to be more resilient than the smaller tenants, however, it has been demonstrated that our infill markets have outperformed the big box, large tenant base located in non-infill market," Michael S. Frankel—co-CEO and director of Rexford Industrial, said on the call. "While this may seem counterintuitive, we believe the historical data paints a clear picture. It is very instructive to consider how our infill tenant base in Southern California performed during prior downturns as compared to large tenants located in non-infill market."
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