SPONSORED: CapRock Partners – What’s ahead for the industrial sector

Tenant demand for industrial will likely remain steady through the year, but will be down from prior peak years, explains Jon Pharris, founder and president of CapRock Partners, in an interview about the state of the industrial sector. Published in the January 2024 issue of Institutional Real Estate Americas, the interview discusses the trends during the past two decades, how the market will likely perform in 2024 and the kinds of opportunities available for investors. “We believe infill locations will continue to outperform and that infill industrial will be one of the only asset classes to experience rental rate growth,” says Pharris. “Conversely, there will be pockets of stress where there has been too much supply amid softening tenant demand for certain size segments. Contrary to conventional wisdom, there is also the possibility that certain submarkets may experience modest rental spikes in 2025, since construction starts will be muted throughout 2024.” To acc