Industrial/Warehouse
The industrial sector is divided into several sectors including: heavy manufacturing, light industrial, and warehousing and logistics facilities. Warehousing and logistics facilities are sectors in which TRX management has a tremendous amount of experience and success.
This experience has primarily been in:
- commercial, or modular, warehouses;
- master-planned logistics parks for both consumption and production distribution;
- user occupied sites which can be build to suit facilities, sale and lease back, or leased to third parties.
Industrial facilities are in high demand. The recovering manufacturing sector in the US creates demand for production and regional distribution centers. The development of new residential centers, as well as the increase of on-line retailing creates demand for local and last mile distribution centers. These trends for operational demand translate to investor demand as well.
The industrial sector has attractive, intrinsic qualities as well: it is not a complex or expensive product to build, well produced product has low maintenance and operating expenses, it has relatively few and simple leases compared to other sectors, and it has high operational barriers to exit as companies do not want to interrupt logistics operations to change facilities.
These factors, amongst others, make the industrial/distribution the best rated by US investors both for acquisitions and development. However, as always, each market has it’s demand and supply characteristics which need to taken into account when evaluating investment decisions, including the best suited product for each market.