Buyers are willing to pay up for warehouses with Amazon as a tenant.
A hedonic pricing analysis on the US logistics market shows that when one controls for factors such as property location, size and age, investors will pay a premium of around 8% for an Amazon-let property.
This premium equates to approximately a 45 bps difference in yields, based on current market averages.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.