Jonathan Needell, president and CIO of KIMC, a real estate investment company, makes the case that the industrial sector is not as insulated from the negative consequences of this pandemic as many have been assuming. Below is a Q&A explaining his views and opinions, which are solely his.
Why don’t you consider industrial a safe haven? What makes it not?
Too often, price is an ignored component of safety, and I think that is the case with industrial real estate right now. As the pandemic has worn on, institutional capital has sought safety, which has contributed to the bidding up of many industrial properties. I don’t disagree with the bull case for industrial. Quite to the contrary, I feel that ecommerce is providing a strong tailwind that is likely to p