In below graphic, note how strong the industrial category is compared to the other commercial real estate property types. Office and retail are the two most vulnerable.

Moving forward with the slow decline in rents and values, industrial real estate is well positioned to weather economic challenges.

Potential distressed properties have delinquent payments, low occupancy and thus high vacancy, maturing debt / loans, or other looming troubles. These factors could cause the properties to default on their loan obligations and trigger a foreclosure sale.