---
title: Market Update - Industrial Sector
description: Versus Capital discusses what is driving rent growth in the industrial real estate sector as of March 2024.
image: https://blog.harrisonstpw.com/hubfs/LinkedIn%20Posts/2024.03%20VC%20LinkedIn%20Post%20-%20Industrial.png
---

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## Market Update - Industrial Sector

 June 24, 2024

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What is driving rent growth in the Industrial real estate sector?

- The use of automation and robotics is prevalent in modern warehouses for tasks like picking, packing, and sorting. However, many older warehouses lack the infrastructure to support automated storage and retrieval systems, conveyors, and advanced management software.
- Surprisingly, only 29% of industrial warehouses in the US were built after 2000, with much of the existing warehouse stock dating back to before 1970. Outdated designs, such as concrete flooring that is incompatible with modern robots, and limited capabilities (lack of space and power) of these older warehouses make them obsolete by many of today's standards.
- We expect this to lead to increased demand for cutting-edge logistics centers that can meet the needs of modern industrial tenants.

![2024.03 VC LinkedIn Post - Industrial](https://blog.harrisonstpw.com/hs-fs/hubfs/LinkedIn%20Posts/2024.03%20VC%20LinkedIn%20Post%20-%20Industrial.png?width=600&height=600&name=2024.03%20VC%20LinkedIn%20Post%20-%20Industrial.png)

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Categories: [Real Assets](https://blog.harrisonstpw.com/real-assets/tag/real-assets), [Real Estate](https://blog.harrisonstpw.com/real-assets/tag/real-estate)

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SOME OF THE RISKS OF INVESTING IN THE FUND:  
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INVESTORS SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES BEFORE INVESTING. A PROSPECTUS WITH THIS AND OTHER INFORMATION ABOUT THE FUND MAY BE OBTAINED BY CLICKING THE PROSPECTUS LINK ABOVE.  INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. AN INVESTMENT IN THE FUND IS SUBJECT TO A HIGH DEGREE OF RISK. THESE RISKS INCLUDE, BUT ARE NOT LIMITED TO, THOSE OUTLINED BELOW.

- Real estate entails special risks, including tenant default, environmental problems, and adverse changes in local economies.   Additionally, the capital value of the Fund’s investments may be significantly diminished in the event of a downward turn in real estate market prices.
- Defaults among mortgage loans in which the Fund invests may result in the Fund being unable to repossess and sell the underlying properties in a timely manner. The resulting time delay could reduce the value of the investment in the defaulted mortgage loans.
- The Fund is “non-diversified” under the Investment Company Act of 1940. Changes in the market value of a single holding may cause greater fluctuation in the Fund’s net asset value than in a “diversified” fund. The Fund is not intended as a complete investment program but instead as a way to help investors diversify into real estate. Diversification does not ensure a profit or guarantee against a loss.
- A multi-manager strategy involves certain risks. For example, it is possible that some private fund managers may take similar market positions, thereby interfering with the Fund’s investment goal. The Fund may borrow as an investment strategy, up to one third of the Fund’s gross asset value. Borrowing presents opportunities to increase the Fund’s return, but potentially increases the losses as well. Because the private funds may themselves borrow and incur a higher level of leverage than that which the Fund is permitted, the Fund could be effectively leveraged in an amount far greater than the limit imposed by the Investment Company Act of 1940.
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- You should not expect to be able to sell your shares other than through the Fund’s repurchase policy, regardless of how the Fund performs.

*All information contained herein is for informational purposes only and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. Any discussion of general market activity, industry or sector trends, or other broad-based economic, market, political or regulatory conditions should not be construed as research or investment advice.*

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---

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