Industrial Market Fundamentals Have Staying Power, Yardi Matrix Reports

BY PR Newswire | ECONOMIC | 09/24/21 11:21 AM EDT

SANTA BARBARA, Calif., Sept. 24, 2021 /PRNewswire/ -- Industrial real estate has continued to thrive throughout the pandemic, leading Yardi? Matrix to analyze whether the segment is experiencing a bubble or if growth will continue for foreseeable future.

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Those macroeconomic variables include retail sales, housing starts and personal income, which appear to have staying power, according to a new Matrix Bulletin. They have created increased demand for e-commerce and retail sales. In turn, that powers absorption, higher rents and investor demand for industrial properties.

"Those factors are projected to continue to grow robustly through the middle of the decade," say analysts. "Given the strong historical correlation, we believe that demand for industrial space will continue unabated for at least several more years."

The Matrix forecast calls for a 2.0% to 2.3% annual increase in total stock over the next five years, which would generate between 350 million and 370 million square feet of new industrial space each year through 2026. That follows the more than 290 million square feet of industrial space that has been delivered annually since 2018, peaking at 306 million square feet in 2020.

Read more about the factors influencing industrial real estate's continued strength.

Yardi?Matrix offers the industry's most comprehensive market intelligence tool for?investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi? develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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