Why I'm Doubling Down on This CRE Sector
Arguably the hottest sector in commercial real estate (CRE) right now is industrial real estate. Not only has industrial real estate on average outperformed all other real estate sectors for the past five years straight, but demand has surpassed historic levels. It's clear industrial real estate is having a moment, but there are strong signs this "moment" isn't going anywhere anytime soon. Here's why I'm doubling down on this CRE sector.
One of the biggest drivers fueling the growth of industrial real estate over the past decade has undoubtedly been the rise of e-commerce. E-commerce, which relies on warehouse, distribution, and logistics warehouses to operate, now makes up around 13.3% of all retail sales, a 129% increase from just 10 years ago. The U.S. Census Bureau recently reported that e-commerce in Q2 2021 alone accounted for $211.7 billion in sales, a number that is likely to continue growing as consumers increase their consumption of online shopping and fulfillment. But there are new drivers in town that are driving demand for industrial space to new levels.
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Source Fool.com
