Wharton Radio Interview with Eric Frankel
Alan Feldman interviews Green Street Advisors analyst Eric Frankel about the current trends in the industrial real estate space. Contrary to popular perception that this sector is a stable asset class, Frankel shares that it can actually be quite volatile depending on the demand profile. He highlights shifts that have taken place compared to decades ago, such as warehouses getting bigger with higher ceilings, larger truck lots and the need for close proximity to transportation outlets. Feldman and Frankel discuss Amazon and trends that have emerged due to the rise of ecommerce, as well as the “obsolescence factor” that can potentially come into play when older buildings can’t keep up with the functional needs of tech companies.