Bill Crooker, president and CEO of STAG Industrial, Inc. (NYSE: STAG), sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas, Nevada on Nov. 18-21.
Crooker noted that the supply pipeline has been subdued, particularly in 2024, with market rent growth for STAG at 4%—one of the highest in the sector. For 2025, he anticipates market rent growth will slow to about 2%-3%.
Crooker also addressed STAG’s plans for acquisitions and dispositions, noting that these decisions will largely depend on the direction of interest rates. With interest rates remaining higher for longer, there is often a wider gap between buyers' and sellers' expectations, which could impact acquisition activity. For 2024, the company’s acquisition guidance is set between $500 million and $700 million, although they will reassess and provide further guidance in February.
Regarding geographic markets, STAG continues to focus on CBRE tier one markets, which are preferred for their size and institutional ownership. Crooker mentioned strong interest in Minneapolis, Tampa, and Nashville, where the company has ongoing developments. These markets, with their strong fundamentals, are expected to be key areas of growth for STAG in the near future.