NEW YORK, NY / ACCESSWIRE / April 18, 2024 / EquityMultiple, a premier real estate investment platform, today reinforced its commitment to the burgeoning industrial real estate sector. Drawing on insights from its latest investment framework, EquityMultiple is poised to capitalize on significant growth within this robust market segment, offering individual accredited investors unique commercial real estate opportunities.
As outlined in EquityMultiple's Market Framework, the firm's strategic analysis highlights the industrial sector's promising outlook. With a projected increase in demand for warehouse and distribution centers driven by e-commerce growth, the sector expects a rental growth rate of 3% annually over the next five years, outpacing many other real estate categories.
Charles Clinton, CEO of EquityMultiple, stated: "Our deep dive into the industrial sector reveals substantial growth potential, underpinned by solid fundamentals and accelerated by technological advancements and evolving consumer behaviors. This presents a compelling opportunity for our investors to diversify their portfolios and engage in value-driven commercial real estate investments."
"Acceleration of the fundamental sector drivers, particularly the maturation of e-commerce post-covid, has been striking," said Charles De Andrade, CAIA, Associate Director at EM Investment Partners, EquityMultiple's capital markets arm. "In 2023, nominal growth in e-commerce outpaced brick & mortar by 7.5% to 2.7%, respectively. With e-commerce generally requiring 3x the footprint, this significant demand driver is projected to average ~25% of net absorption over the next five years."
EquityMultiple's approach is backed by rigorous data analysis and market evaluations, ensuring that investments are both strategic and aligned with broader economic indicators. The platform's focus on the industrial sector is supported by a historical occupancy rate of over 90% in key markets, signaling strong and sustained demand. The firm's selective approach and breadth of opportunities were on display recently with the closing of its 'Northern NJ In-Fill Industrial' offering - an equity investment in partnership with Snowball Developments, a vetted operator with significant experience in both industrial and the local market. Both Northern New Jersey and New York appear in the top 12 industrial markets, per EquityMultiple's framework.
Brian Ker of Snowball Developments, a partner of EquityMultiple, said, "Snowball Developments identified 657 Union as an exciting acquisition opportunity due to its highly accessible location, multi-tenancy configuration and large exterior parking capacity, which perfectly encapsulates the dominant industrial leasing trends across Northern New Jersey. We are very bullish on this industrial market."
"Partnering with EquityMultiple for the third time, we are impressed with the team's sophisticated and flexible approach to commercial real estate investing," Ker said.
EquityMultiple's commitment to providing access to diverse commercial real estate opportunities is evident in its proactive sourcing and comprehensive assessment strategies. By focusing on timely, high-potential sectors like industrial real estate, EquityMultiple positions its investors to benefit from specialized market insights and potential above-market returns. In the near term, EquityMultiple will offer industrial opportunities in Orlando, the third-ranked industrial market in its market scoring, which is forecasted to experience 5%-plus growth in the coming years.
"Through strategic investments in the industrial sector, we are not just following market trends; we are anticipating them. Our goal is to offer our investors a gateway to premium commercial real estate that stands to benefit from macroeconomic shifts and sector-specific growth," said Marious Sjulsen, Chief Investment Officer at EquityMultiple.
As EquityMultiple continues to lead with innovation and investor-centric strategies, it remains dedicated to enhancing its offerings, reflecting its stature as a thought leader in the real estate investment landscape. The firm's emphasis on the industrial sector underscores its commitment to maximizing investor returns while contributing to the resilience and dynamism of their investment portfolios.
For more information about EquityMultiple and its focus on industrial real estate investments, please visit EquityMultiple.com.
About EquityMultiple
EquityMultiple is a leading investment management and technology firm that offers unique real estate private equity and private credit opportunities to accredited investors. With a portfolio that has participated in over $5 billion in commercial real estate transactions since 2015, EquityMultiple partners with experienced real estate operators in strong markets across the country. The firm's innovative platform provides investors with access to individual properties and funds, aligning cutting-edge technology with institutional-quality real estate investing.
Contact Information
Jessica Lombao
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SOURCE: EquityMultiple
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