Sticky Inflation, Higher Rates Put Industrial CRE on Guard
Why this matters
Industrial has moved into a normalization phase after the 2020-2023 frenzy. Vacancies are up modestly, sublease space remains a watch item in the big-box logistics segment, and rent growth has shifted from double-digit to mid-single-digit. The long-term tailwinds — nearshoring, e-commerce penetration, infill scarcity — remain intact. Institutional capital is calibrating between core income and value-add basis plays as the cycle matures.
Editorial analysis · Real Estate Trail Editorial
A recent write-up from Marcus & Millichap cautioned that economic signals could be a cause for concern for the industrial sector. The Consumer Price Index (CPI) increased 3.4% year over year. At the same time, core CP…
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