In 2021 nearly $172 billion was spent on warehouse acquisitions, according to Savills and it more than a fourfold increase from a decade ago.

At the same time, as CBRE reports, average US warehouse rents have risen ~75% since the beginning of 2010 to $8.18 a square foot from $4.72 a square foot.

As a result of the boom, warehouse ownership has shifted from a small owners (businesses and manufacturing companies) to blue-chip money managers and private equity funds such Blackstone, KKR & Co. Inc., Prudential Financial, Brookfield Asset Management, Ontario Municipal Employees Retirement System. All of those companies spotted the rising demand for the properties.

Over each of the past 12 years, institutional investors have purchased more warehouse space than they’ve sold, while private owners and owner-operators have sold more than they’ve purchased.

 

 

Source: Business Insider