Fed Hikes Rate Third Time, Industrial REITs Set To Grow
Zacks Investment Research | Jun 25, 2017 09:20PM ET
If the rate hike in June, the third since Dec 2016, has made investors jittery about their investments in the REIT stocks, then this is the apt time to think again. It is because individual market dynamics end up playing a major role in the performance of REITs, and there are favorable conditions, as well as ample chances of growth in some of the asset categories.
For example, take the industrial real estate market where demand for space has been high for several quarters. Admittedly, this asset class is witnessing an improvement in fundamentals amid an economic recovery, growth of e-commerce and U.S.-based manufacturing. This is driving demand for warehouse space as companies are compelled to enhance and renovate their distribution and production platforms.
Particularly, amid economic expansion, e-commerce boom and heightened urbanization, companies are shifting their strategy toward services like same-day delivery and other such options, propelling demand for warehouse distribution facilities. Also, according to a Zacks Investment Research
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