![]() BKM Capital Partners Releases New White Paper Highlighting Multi-Tenant Light Industrial Sector PerformanceThe report affirms the sector's continued resilience even in the face of recession.
The white paper delves into the sector's performance through significant economic downturns, including the Global Financial Crisis (GFC), the COVID-19 pandemic, and the recent period of rapid interest rate hikes from 2022 to 2023. It examines how multi-tenant light industrial properties, with their diverse tenant base and flexible lease structures, have demonstrated remarkable stability in times of uncertainty. "Our latest research reaffirms what we have experienced first-hand for over a decade—multi- Key insights from the report include: Resilience during economic downturns: Multi-tenant light industrial properties have consistently outperformed other real estate sectors in periods of economic stress, thanks to their ability to maintain occupancy and rent collection, even in challenging market environments. Strong supply and demand fundamentals: Diversified tenant base: The wide range of industries represented in multi-tenant light industrial spaces provides a natural hedge against sector-specific downturns, ensuring stability even during periods of economic uncertainty. Inflation protection: The shorter lease terms common in this sector enable more frequent corrections of rental rates, allowing property owners to keep pace with inflation and market changes more effectively. BKM's white paper also highlights the firm's decade-long track record of strong portfolio performance, with high occupancy rates, minimal credit losses, and substantial NOI growth driven by its value-added strategy. As of Q2 2024, BKM's portfolio continues to outperform, even amid elevated financing costs and economic uncertainty. As such, the firm emphasizes BKM's stance that multi-tenant light industrial properties, even in the event of a recession, are expected to deliver strong risk-adjusted returns relative to other asset classes. Please click here to download the full report. Photos: https://www.prlog.org/ https://www.prlog.org/ End
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