The industrial sector has been very popular as demand for warehouse and distribution buildings have driven rents higher. The rise of e-commerce has made industrial REITs the darling asset class for investors.
As a result, the dividend yields of most industrial REITs are rather low. There is one notable exception: Plymouth Industrial REIT (PLYM) with an 8.2% yield.
Is PLYM a bargain or cheap for a reason?
Industrial REITs
The U.S. industrial sector is experiencing rising rental rates and declining vacancy rates due primarily to the following factors:
- Limited new construction and growing