Big Investors, Including Prologis and Blackstone, Show They Remain Bullish on the Industrial Sector
Global industrial owner Prologis and private equity giant the Blackstone Group have been aggressively acquiring industrial real estate portfolios over the last year. The acquisitions should provide them with benefits including operational efficiencies and expanded tenant relationships, especially with e-commerce giants like Amazon, notes Al Pontius, senior vice president and national director, office, industrial, healthcare and special asset services, with brokerage firm Marcus & Millichap.
“The larger you are the more you benefit from economies of scale,” he says. “There are clear operational advantages to consolidation, as it minimizes cost per unit in the majority of areas on the expense side.”