Small Warehouses in Infill Locations Command a Premium

Big investors are turning their attention toward smaller industrial buildings, specifically ones located in urban areas near customers, CoStar reports.

These buildings are often close to train tracks and roads, making it easier to get products in, and perhaps more importantly, out to customers.

CoStar Director of Industrial Research Rene Circ notes, “these are infill locations, very difficult to replace, and they’re going to be the interest of many investors going forward as companies like Amazon want to get closer and closer to their end consumers.” CoStar’s Fourth Quarter 2016 US Industrial Review and Forecast found more than 10,000 such buildings in the U.S., and noted rent on these facilities increased more than 10 percent last year.

“Last mile was just a talking point for most players in 2016,” Circ added. “We expect it will really take off this year and in 2018.”

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