Midwest Investors Prefer Industrial Over Multifamily
CHICAGO—Commercial real estate investors in the Midwest and across the country have a lot of confidence in the market, but with a preference for multifamily and industrial assets, according to a national investor sentiment report by Real Capital Markets.
In the Midwest, 36% of investors surveyed preferred industrial assets, followed by multifamily, the choice of 20%. This differs from the national results, that showed multifamily at 35%, just slightly ahead of 33% which choose industrial.
“Investors are looking for outperformance, and in the Midwest, the industrial sector has significantly outperformed growth expectations,” Brian McAuliffe, Chicago-based president of institutional properties for CBRE, tells GlobeSt.com. “The net absorption in recent years has outpaced new supply,” and that should keep rent growth strong.