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New Distribution Centers Hold Onto Property Values Despite Higher Interest Rates

Record-Breaking Rent Growth Has Helped Buoy Asset Pricing
In May 2023, Invesco Real Estate bought the West Essex Logistics Center in Livingston, New Jersey, for over $98 million. At $335 per square foot, the price was one of the highest ever recorded on a per-square-foot basis for a newly built distribution center in the state. (CoStar)
In May 2023, Invesco Real Estate bought the West Essex Logistics Center in Livingston, New Jersey, for over $98 million. At $335 per square foot, the price was one of the highest ever recorded on a per-square-foot basis for a newly built distribution center in the state. (CoStar)

Since early 2022, the U.S. Federal Reserve has gone all-in on its efforts to curtail inflation, raising its key policy instrument, the rate at which banks can borrow and lend overnight reserves, at the fastest pace in more than 40 years.

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