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Struggling Retailers Are Shedding Industrial Space for Quick Cash

Rising Sale-Leaseback Activity Provides Opportunities for Investors to Acquire Highly Sought After Property Assets
Kohl's sold a pair of distribution centers in San Bernardino, California to an affiliate of Brookfield Asset Management for $195 million earlier this year. The rise of sale-leaseback deals offers investors another option for acquiring sought-after industrial property. (CoStar)
Kohl's sold a pair of distribution centers in San Bernardino, California to an affiliate of Brookfield Asset Management for $195 million earlier this year. The rise of sale-leaseback deals offers investors another option for acquiring sought-after industrial property. (CoStar)
By Andrew Zola
CoStar Advisory Services
September 18, 2020 | 2:47 P.M.

E-commerce firms led by Amazon have leased over 40 million square feet of industrial space so far this year, more than any other type of commercial tenant. This pandemic-induced acceleration of e-commerce demand growth has kept vacancies tight and buoyed rents, making warehouse and distribution assets highly sought after by commercial real estate investors.

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