Industrial REITs own the logistics infrastructure that underpins modern e-commerce and supply chains — fulfillment centers, distribution warehouses, last-mile delivery facilities and industrial parks. This has been the strongest performing segment within real estate over the past decade, driven by the structural shift of retail spending online, which requires roughly three times more warehouse space per dollar of sales than traditional retail. Supply chain resilience initiatives have added incremental demand from companies building safety stock inventories. Modern, functional warehouse space in supply-constrained infill markets near population centers commands significant rent premiums over older, less-functional facilities. Proximity to consumers — measured in drive time for last-mile delivery — is the primary location quality metric. Rent growth has been exceptional, with market rents rising well ahead of existing lease rates in prime markets, creating mark-to-market revenue growth as leases roll to market. For investors, industrial REITs in prime logistics markets offer one of the clearest structural growth stories within real estate, supported by secular e-commerce growth that shows no reversal.
