During the recent Appraisal Institute & NAIOP: Industrial Market Update, industry experts shared valuable insights into how equity investors are approaching today’s industrial market. 📊
The expert panel included:
- Jody Barry, CCIM – Barry Development Group
- Ryan Williams, MAI – Colliers International Valuation Advisory Services
- Joe Curley – McCraney Property Company
- Todd Watson – Managing Partner
- Monica Wonus, CCIM – Senior Vice President, CBRE
Key Takeaways
- Equity investors remain active but increasingly cautious, with rising concerns about rent resiliency and long-term occupancy stability.
- There’s heightened focus on tenants’ ability to absorb rent increases upon renewal — especially leases signed 5+ years ago, some of which are now 25-40% below current market rents.
- Historically, institutional warehouse equity has required an all-cash yield of 6.5-7%, but with interest rates now hovering in that same range, there’s no positive leverage, forcing developers and investors to target at least a 7%+ all-cash return on cost.
As capital markets continue to evolve, careful underwriting, creative deal structuring, and accurate valuations will be essential for developers, owners, and investors aiming to achieve sustainable outcomes in 2025.
Valtrust provides independent, high-quality real estate appraisal services across Florida and the Southeastern U.S. Whether you’re acquiring, developing, or refinancing, Valtrust delivers precise valuations and actionable insights to help you make informed decisions with confidence. Learn more: www.valtrust.com.