Green Street Advisors

 

 

Pensions & Investments: Managers Feel Logistics Assets Will Remain Safe

According to Pensions & Investments:  Institutional investor demand for logistics assets should prove resilient in the face of a triumphant U.S. presidential campaign by Donald J. Trump, predicated on tearing up the country's trade agreements, industry analysts say.

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With the critical mass of uncertainty now regarding a President Trump's policies, some profit taking makes sense, said Eric Frankel, research analyst and head of industrial real estate with Green Street Advisors LLC in Newport Beach, Calif.. If Mr. Trump follows through on any of the more protectionist policies he campaigned on, the fallout will weigh on owners of logistics assets, and particularly those like Prologis with material global operations in countries such as Mexico and China, said Mr. Frankel.

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Still, demand will fall with a protectionist hit to global trade that would inevitably hurt consumption, noted Green Street Advisors' Mr. Frankel. Trends such as e-commerce will buffer demand for logistics companies, but in a negative scenario they “won't escape unscathed,” he said.

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