In Age of Amazon, You Could Invest in Tech—or in Warehouses
April 13, 2018 | Rob Urban | Bloomberg
Forget your fancy office towers. The future lies in warehouses.
But not just any old dusty depot. It’s got to be big enough, smart enough and close enough to consumers. Pick right and you could beat the returns of every other kind of property this year.
Real estate investment trusts that specialize in industrial properties, such as Prologis Inc., Rexford Industrial Realty Inc. and Terreno Realty Corp., are outperforming REITs that focus on malls, residential rentals and office buildings. The three companies all returned more than 16 percent in the past year, crushing other types of real estate — and handily beating their own peers in the Bloomberg REIT Industrial/Warehouse index, which reaped 8.3 percent.
