At one point, industrial real estate investment trusts (REITs) were Wall Street darlings thanks to the increased demand for warehouse space during the pandemic. Then they fell out of favor as a result of rising interest rates, which increase operating costs for REITs. Both Rexford Industrial (NYSE: REXR) and Prologis (NYSE: PLD) have risen substantially off of their recent lows, but still remain below their longer-term highs. Now could be a good time to grab them while they look like they are still on sale.

Rexford Industrial is a highly focused business. Not only does it only own industrial properties, with a heavy emphasis on warehouses, but it only invests in Southern California. This is probably one of the least diverse REITs you can buy. But that has to be weighed against the inherent attractiveness of the Southern California market.

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Source Fool.com