Warehouses for sale are very few and far between. This is because this particular sector has experienced substantial growth over the past 3-5 years as companies like Amazon expand, sell more goods and need more warehouses and storage units.

However, not all is rosy in this commercial property sector. Many investors, especially pension funds and institutions, have paid huge prices for these warehouse and it is starting to look like they have overpaid. As interest rates continue to rise, the gap between the yields (the rent as a percentage of the price paid for the property) and the cost of funds (the interest rate attached to the loan which investors pay) continues to close. Soon we will see negative funding rates where the cost of funds are higher than the yields. This will lead to companies having to use their own money each year to fund their loans as the rent they receive will not be enough to cover the loan payments. When this starts to happen, which many believe will be very soon, there will be a lot more warehouses for sale.