Some may be bearish on the future of retail-based REITs, but those focused on industrial warehouse space are becoming the darlings of the sector. "Amazon is at the forefront of a larger trend that has seen demand for well-located logistics centers, very close to major urban centers increase sharply," says Sam Chandan of Chandan Economics.
"The online retailers have struggled to figure out how to get the goods closer and closer and closer to where the people live," says PWC partner Mitch Roschelle. A survey by his firm finds warehouses the strongest prospect for both investment and development in 2014, with two-thirds of respondents calling them a "buy."
Chambers Street (CSG +0.1%) - which came public last spring - owns six Amazon fulfillment centers. They're larger properties, but Amazon has its eye on smaller spaces closer to customers. It's a trend that's catching on as "mom and pops" in the e-commerce game are also looking for well-located, appropriately-sized properties.