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Industrial, Multifamily A Very Close 1-2 For Most Attractive Investment Classes

Multifamily and industrial assets are a hot commodity for real estate investors this year, with many investors focusing on value-add opportunities. 


While multifamily assets edged out industrial as the top segment for investment, according to a survey conducted by global real estate marketplace Real Capital Markets, industrial did gain significant ground over the past year. Largely driven by the e-commerce industry, the industrial market is now a major draw for investors, according to an RCM report.

“There are retailers who are replacing leases for $30 to $100/SF shopping center space with $4/SF industrial space so they can offer same day shipping. It’s that convergence that is keeping industrial white hot,” Cushman & Wakefield President of Investor Services & Capital Markets, America Noble Carpenter said in the report.

The demand driving industrial real estate is not expected to fade any time soon. Experts say as e-commerce grows, the market will continue to see industrial product returns outperform the majority of other sectors.

The only concern revolves around the potential lack of available industrial assets, which is one of the primary factors keeping multifamily in the lead as a favored investment. Many investors view the multifamily market as more accessible because of the amount of supply across the U.S.