Industrial real estate has been on fire lately. In many markets in the U.S., they simply can't build warehouses and other industrial properties fast enough to keep up with demand. In this Fool Live video clip, recorded on Jan. 14, Fool.com contributors Jason Hall and Matt Frankel discuss their favorite industrial REITs for 2022 and beyond.
Matt Frankel: Industrial real estate in many key markets is essentially sold out. They cannot build it fast enough. These are like fulfillment centers for Amazon (AMZN -0.86%) and other e-commerce warehouse space, things like that. My favorite in this space is, and I promise I'll let you go first next time, is EastGroup Properties (EGP 0.48%), ticker symbol, EGP. Hopefully, we didn't overlap on that one as well. Perfect.
Jason Hall: We're going pretty diversified on this one.
Frankel: Awesome. I like them because they specialize in the Sun Belt and secondary markets. They have a big presence in Philadelphia but not New York City. They are the smaller markets where you get a little bit more bang for your buck in terms of return on capital.
Hall: I'm going with STAG Industrial (STAG 0.55%) here. Again, this is one of the larger industrial REITs. You think about their size, 13 1/2 million square feet they have leased. They are showing it right in the bottom line. Again, this is diversified. Let's see if I can remember the exact number. How many properties do they have, 500 properties? I thought I had it right here on one of the slides. That was close. So, I'm just going to hop out of this. Hundreds of properties. Their largest tenant, I think is still Amazon, and Amazon is 2% or 3% of their net operating income. Very diversified. I think in this space, being diversified could help. You don't have as much upside, but I think it still could be a really big winner from here.
Frankel: I like that they have monthly dividends also, which is rare in the space.
Hall: It's true.
