OPPORTUNITY
We believe the current market represents an attractive entry point to buy industrial properties. Property values are down from 2007’s peak levels for two important reasons:
Declines in occupancy and rent growth as tenants responded to macroeconomic trends
Pressure on overleveraged owners to sell property as loans mature
These events curbed development of new industrial supply over the last few years, creating an environment for occupancy improvement and rent growth as the economy improves. Not all property operators will be able to take advantage of an improving property market. Legacy issues—such as overleveraged properties or currently unproductive land—will preclude many from making attractive acquisitions.
Terreno has the expertise and the capital to acquire high quality industrial assets at compelling long term returns and at discounts to replacement cost and the higher valuations of recent years.