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VLP Partner Patrick Valentino Quoted in Law360 Article “Real Estate Firms Flock To Industrial Amid E-Commerce Boom”

Posted on Jun 9, 2017 in News by Patrick C. Valentino

VLP Real Estate Partner Patrick Valentino was quoted in the Law360 article “Real Estate Firms Flock to Industrial Amid E-Commerce Boom.”

The article reported that U.S. and global investors are increasingly pouring their capital into industrial properties amid strong outlooks due to the growth of e-commerce. As companies like offer two-hour shipping, the need for such facilities in or very close to urban cores is soaring. The article noted that this can present challenges when it comes to building in downtown areas.

The article stated that, while ground-up construction is one solution to the burgeoning need for more industrial space, some developers are also seeing opportunities to convert existing brick-and-mortar retail spaces to industrial. The trend toward developing and repurposing for industrial is playing out in and outside dozens of U.S. cities.

Mr. Valentino said, “Proximity to the customer is essential to the success of e-commerce which in turn is driving demand for facilities with modern technologies close to higher population centers.”

The article noted that getting access to such properties is not always easy, particularly for smaller developers. Mr. Valentino said some firms are looking to pick up industrial properties through large portfolio deals, although that requires either having the cash on hand or lining up financing.

“For investors looking to own and operate, barriers to entering the industrial real estate market may be steep. The bigger real estate players will seek large portfolios to enter the market as construction lags behind demand,” Mr. Valentino said.

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