Two very different buyers have kept industrial deals moving
Though every commercial sector has been hit by the pandemic in some way, experts agree that industrial has held up the best so far. At the end of 2019 and at the start of 2020, industrial deals were happening and buyer interest was at an all-time high, said Adam Abushagur, senior vice president of investments at Marcus & Millichap. Once shelter-in-place happened, activity fell into two categories depending on the client.
“On the institutional side, everything was at a dead stop. Deals that were in the works just paused. On the private side, things were still moving,” said Abushagur.
Adam Abushagur is senior vice president of investments at Marcus & Millichap.
MARCUS & MILLICHAP
This activity in the private sector has been credited to 1031 exchange buyers, whom Abushagur does much of his business with. Due to time restrictions, these buyers were still motivated to act quickly, and only paused when the IRS extended the 1031 exchange deadline to July 15. Activity was slowest in May, said Abushagur, but has steadily picked up since. Despite the slowdown, Abushagur is expecting to have his best year ever in 2020, and believes overall interest and demand in industrial real estate will continue as investors look to diversify from other assets like office, retail and hospitality.
Full Article: https://www.bizjournals.com/dallas/news/2020/08/27/commercial-real-estate-dallas-fort-worth-2020.html