Ben Butcher, chairman and CEO of STAG Industrial, Inc. (NYSE: STAG), participated in a video interview in conjunction with Nareit’s REITweek: 2021 Investor Conference.
Earlier this year, STAG celebrated 10 years as a public company. Butcher said the REIT’s strategy will continue to focus on pricing inefficiency in the industrial market and taking advantage of that inefficiency to buy accretively.
STAG expects to target $800 million to $1.2 billion in acquisitions this year, mostly made up of individual purchases across about 60 primary and secondary markets.
“This is as strong a demand market for industrial real estate as we’ve ever seen,” with multiple bidders, Butcher said. As a result, STAG expects its hit rate—the number of deals it buys compared with the number it underwrites—to be significantly lower this year.
Butcher also said he expects recent supply chain disruptions will make companies rethink just-in-time inventories and will be an additional demand driver.