November 19, 2019
Industrial earns most of the superlatives in CBRE’s third-quarter U.S. capital markets report. On a year-over-year basis, industrial saw the biggest increases in sales volume and pricing among the major property types and the biggest decrease in cap rates.
Sales volume overall increased by 63.2% Y-O-Y to $40.1 billion for industrial, CBRE says. That puts the sector’s dollar volume a close second behind that of multifamily, where investment sales declined 11.1% from Q3 2018.
Much of the 12-month increase for industrial was due to Blackstone’s acquisition of GLP’s U.S. portfolio, which closed during Q3. However, industrial also led the way with its 13.8% Y-O-Y increase in sales of individual properties.
On a year-to-date basis through Sept. 30, industrial’s total of $108.6 billion in sales ranked third behind multifamily and office. It led the way, though, in Y-O-Y percentage increase, for both overall volume and individual sales.
Citing data from Real Capital Analytics, CBRE reported that multifamily has experienced the greatest gains in pricing compared to the 2007 peak. But on a Y-O-Y basis, industrial led the way in pricing growth, with an 11.9% increase compared to 7.7% for multifamily.
Y-O-Y cap rate compression is another area in which industrial ranks first. Cap rates decreased for industrial by 28 basis points overall, compared to nine bps for multifamily. CBRE says industrial cap rates have also decreased the most from their recessionary peaks, declining by 296 bps since then.
Pictured: A property in a Monroe, OH portfolio that traded for $180 million in Q3. Photo courtesy of IDI Logistics.
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