Changing Of The Guard: Monmouth Delivers

There is certainly a “changing of the guard” when it comes to retail and logistics, and Monmouth REIT is on the cutting-edge when it comes to leasing space to some of the best e-commerce providers.

Summary

  • The path that begins with an order placed on your smartphone and ends with a package at your door is creating a powerful secular growth story for various REIT sectors.
  • There’s a headline that somehow got lost in the noise… that began with a Big Town Mall that was for many years the largest mall in Texas.
  • "The digital economy is reshaping the world of real-estate in profound ways." - Mike Landy, CEO of Monmouth Real Estate.

A few days ago, I wrote a Forbes article explaining the “trifecta” concept as “somewhat of a three-legged stool in which the Cell Tower REITs, Data Center REITs and Industrial REITs are all participating in a new type of commerce and are all driven by a new kind of demand.”

I explained that “the last leg to the stool is logistics, or the Industrial REITs, the sector has been the beneficiary of e-commerce. Think of it like this, the smartphone transmits the purchase and the Data Center receives it and then the order is relayed to a logistics warehouse, where it is fulfilled and shipped to your home.

By owning shares in Cell Tower REITs, Data Center REITs, and Industrial REITs – the “trifecta advantage” – investors can benefit from the insatiable e-commerce. As Evan Serton, REIT Portfolio Specialist with Cohen & Steers, explains:

The path that begins with an order placed on your smartphone and ends with a package at your door is creating a powerful secular growth story for various REIT sectors. Amid all the headlines lamenting the demise of the traditional shopping mall, there is an equal and important series of developments that may be a new source of growth for real estate investors.”

But wait, there’s a headline that somehow got lost in the noise… that began with a Big Town Mall that was for many years the largest mall in Texas…

That photo was taken decades ago as this Dallas-based Mall was constructed in 1959 and was the first enclosed, air-conditioned mall in the Southwest. As one time up to three major chain stores (J.C. Penney (NYSE:JCP), Sanger-Harris, and Montgomery Ward) were part of the complex. In 2011, the Mall was demolished and today the 65-acre site is home to a new 352,000 square foot FedEx (NYSE:FDX) facility owned by Monmouth Real Estate (MNR).

Changing Of The Guard

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