Green Street Advisors

 

 

Wall Street Journal: Blackstone Bets Big on Logistics

According to The Wall Street Journal: Private-equity giant Blackstone Group LP has cut a deal to pay $1.5 billion for a portfolio of logistics centers, in the latest sign that this e-commerce-driven business is one of the hottest areas in the commercial-property industry.

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Net income of real-estate investment trusts that focus on logistics, warehouses and other industrial property is expected to rise 4.8% this year, more than any other property type except apartment buildings and self-storage, according to Green Street Advisors LLC. Last year, income in the industrial sector increased 4.5% versus the industry average of 4.2%.

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But so far, demand growth from tenants is outpacing new supply, according to analyst Eric Frankel of Green Street. “In some markets there’s meaningful new supply, but it’s being absorbed very quickly,” he said.

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To view the full article from The Wall Street Journal, click here.