Better Buy: Terreno Realty vs. Prologis

The intense demand for industrial space in America is no big secret. New research from commercial real estate services giant Jones Lang Lasalle says that vacancy dropped below 3.8% nationwide for the first time ever. Almost a half-billion square feet of new space is under construction.

Competition for existing space has driven up rents -- the JLL report says they have risen by 11.3% since the end of 2020. Owners of such spaces have made a lot of money, including shareholders of real estate investment trusts (REITs) that own and operate such properties.

The National Association of Real Estate Investment Trusts (NAREIT) counts 13 publicly traded companies in the industrial REIT sector and says they posted a total return of 47.11% in 2021. That same group was down about 14% heading into this month year to date, which makes now a good time to consider bargains in that sector.

Source Fool.com