Real Capital Markets, an organization acquired by C-III Capital Partners under the leadership of Andrew Farkas, published a report detailing expected industrial investment trends in 2018.
The healthy growth the industry has seen this year will continue next year, according to the report. Real Capital Markets found that 90.3 percent of brokers and investors believe that investment activity will remain comparable to current levels. 47.8 percent believe that activity will increase, even if just nominally.
The expected growth comes off a strong trend that began in 2011 with expansion in leasing, construction, and capital market sales. Demand currently outweighs supply in core markets, and according to respondents of the survey that will continue for at least another 12-18 months.
The report also identified a number of threats that investors and brokers see in the industry, which include overbuilding and oversupply, the lack of quality assets for investing, and the unrealistic expectations of sellers.
Respondents also identified a number of reasons that were impacting industrial investment the most. 37.4 identified e-commerce as having the greatest impact, with general economic strength following at 34.5 percent.
Pricing of industrial assets has remained strong for several years, and is currently hitting record levels in certain core markets.
Real Capital Markets was founded in 1999 and became the leading commercial real estate disposition platform for property and note sales. It enables to customers to market, manage and track assets throughout the entire real estate life cycle. Under the direction of chairman and CEO Andrew Farkas, C-III Capital Partners acquired Real Capital Markets to expand the organization’s assets, which in total now exceed $8 billion.Read More