As the e-commerce industry continues to expand in the digital age, industrial and warehouse space in the real estate industry have enjoyed strong support. Investors can also target this potential growth opportunity in the REITs sector linked to online retailers through a targeted exchange traded fund strategy.
According to a new industrial market analysis from Cushman & Wakefield, demand for the industrial and warehouse sub-sector for the broader real estate investment trusts market in the second quarter of 2018 “continued to be impressive and broad-based” as the segment benefits from increased prices, low supply and the boom in e-commerce, Curbed reports.
“This is important because investing in this space is a roundabout way to play the e-commerce sector without exposure to volatile and expensive retail equities like Amazon, Walmart and more,” according to Pacer.
Every region performed well with rent rising 7.2% nationally. Net absorption of new space is set to rank among one of the top five years on record. Meanwhile, the national vacancy rate is at 5%, or below the five-year average of 6.8%, suggesting that recent performance is solid despite years of extended demand for warehouse space.