The geographic focus of a REIT investing in industrial land is typically shaped by its overall investment strategy, target tenant base, logistics infrastructure, and regional economic trends. Each REIT maintains a defined footprint that aligns with growth opportunities, land availability, transportation access, and market demand. Below are five key geographic focus types commonly observed among industrial REITs.
1. Major Logistics and Transportation Corridors
- REITs often prioritize land near major interstate highways, ports, rail hubs, and airports.
- These locations support distribution centers, last-mile delivery hubs, and freight facilities.
- High demand for e-commerce and third-party logistics (3PL) operations influences this focus.
- Sites are chosen for proximity to consumer populations and shipping nodes.
- Examples include logistics belts surrounding large metro regions or inland ports.
2. Top-Tier Industrial Metro Markets
- Focus is placed on Tier 1 and Tier 2 metropolitan areas with strong industrial absorption rates.
- These include high-barrier-to-entry markets where land is scarce but demand is high.
- REITs invest in urban infill, brownfield redevelopment, and vertical industrial space.
- Typical targets include areas with robust infrastructure, labor access, and utility support.
- Land investments here are often held for long-term redevelopment or build-to-suit projects.
3. Emerging Industrial Hubs and Growth Corridors
- Some REITs target secondary or tertiary markets where land is more affordable.
- Focus is on strategic land banking along expanding logistics corridors or new infrastructure projects.
- These areas often see rising demand due to population growth and supply chain decentralization.
- REITs seek entitlement or zoning advantages to capitalize on future development waves.
- Often aligned with public investment zones or industrial park initiatives.
4. Specialized Zones and Economic Incentive Areas
- REITs may target Opportunity Zones, Foreign Trade Zones (FTZs), or Special Economic Zones.
- These areas offer tax incentives, reduced regulatory burdens, and infrastructure support.
- The goal is to attract manufacturers, exporters, or clean tech operators.
- Focus may include land near border crossings, renewable energy clusters, or innovation districts.
- Helps reduce holding costs while offering potential upside through government programs.
5. Port-Adjacent and Coastal Industrial Regions
- Coastal access is critical for REITs serving import/export and intermodal logistics sectors.
- These regions support container yards, transloading centers, and cold storage facilities.
- REITs often invest in scarce port-proximate land for long-term control and redevelopment.
- Environmental and zoning complexity is high, but lease premiums justify the investment.
- Coastal focus aligns with tenants in shipping, warehousing, and international trade.
