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Industrial real estate has thrived over the past decade due to e-commerce and advanced logistics, but changing economic conditions are now impacting these gains. At the halfway point of 2024, the industrial real estate sector faces challenges like expensive debt and the looming fear of a recession, prompting more stringent standards for capital providers and a bids on actively marketed assets. Despite potential growth declines due to higher interest rates and limited capital flow, onshoring and the continued strength of e-commerce offer sustained benefits for the sector. Operators must adapt to rising expenses, stricter lending, and evolving tenant needs by offering versatile spaces and maintaining diversified tenant portfolios to ensure cash flow growth and stability. Originators and operators with real estate market expertise, a strong value-add strategy, and the placement of a moderate amount of debt will have the most advantage in navigating this uncertain period. Read more on the current state of the debt market here: https://lnkd.in/gu_GGRvz Adam Candler #BKM #TeamBKM #StateoftheMarket #CRE #IndustrialCRE #DebtMarket #ValueAddStrategy

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