Monmouth CEO Says Industrial Prices Per Square Foot at Highest Level Ever

Mike Landy, president and CEO of Monmouth Real Estate Investment Corp. (NYSE: MNR), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.

Monmouth invests in single tenant industrial properties, with long-term leases to investment grade clients. The company has more than doubled the size of its portfolio since 2013.

Landy noted that pricing is competitive, land values are going up, and construction costs are soaring. As a result, the price per square foot for industrial assets is now the highest ever, while cap rates are at the lowest level ever. Looking ahead, Landy said Monmouth believes its assets will be worth “significantly more” in 10 to 15 years.

Landy also noted that Monmouth’s assets are now in their fourth consecutive year of more than 99 percent occupancy: “That speaks to how integral these assets are to our tenant base.”

Meanwhile, Landy commented on trade issues and the impact on industrial real estate. “I’m not really concerned that we’re going to go backward into some isolationist type of economy—it’s definitely a global economy,” he said.