Industrial property and the brave new world of e-commerce
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The rise in treasury bond yields is unquestionably bearish for classic bond proxies such as utilities and most segments of real estate. Yet I have made no secret of my conviction that industrial real estate is the most attractive, most resilient niche in global property investing. This does not mean an investors should shell out a fortune to own a warehouse or buy a leveraged lease on an Amazon bulk warehouse with the fixed seven to eight per cent returns while bearing the full risk of an industrial cycle downturn or interest rate hike. My interest lies in the industrial real estate investment trusts (Reits) in the US, Europe and Singapore, which are listed on a major stock exchange, boast organic growth, seven- to 10-year tenant lease, corporate tenants with world-class brands, pricing power and, ideally, be positioned at the nodal points of the world's evolving e-commerce infrastructure.
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