Step by Step: Prologis on the normalization of industrial real estate

The Weekly Take from CBRE

Industrial remains a highly desirable asset class despite a cooling of demand and softened market fundamentals. Prologis’ Melinda McLaughlin and CBRE’s Chris Riley offer insights on the long-term prospects for the sector.

Insights to Share:

• While the last 24 months have seen a slowdown of transaction activity in industrial markets, the long-term prospects remain solid.

• Conversions to industrial are typically viable where land comprises most of the total development costs, which usually are close to densely populated urban centers.

• Manufacturing and warehouse facilities have increased automation, adding technology that enables machinery to adapt to changes in the business.