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