U.S. INDUSTRIAL SALES VOLUME & CAP RATES
- The U.S. industrial market remained strong in 2012, with lower overall vacancy rates, and overall positive net absorption. The increased activity brought about continued interest from industrial investors. Through November 2012, Real Capital Analytics (RCA) tracked 465 msf of investment activity in the U.S. – the second highest annual total in the past five years.
- According to RCA, some of the most active buyers in terms of sales volume in 2012 included DRA Advisors, KTR Capital Partners, Industrial Income Trust (IIT), and Blackstone. The largest sellers in 2012 were Prologis, Dexus Property Group, Mission West Properties and Kilroy Realty.
- Increased investment activity over the past 24 months as well as positive economic factors including lower unemployment rates and higher consumer confidence, brought cap rates lower in 2012 to 7.8%, 20 basis points lower than 2011. With industrial rental rates projected to rise, and the Feds recent announcement that interest rates will not rise until the U.S. economy reaches an unemployment rate of 6.5%, cap rate compression will continue for the foreseeable future.
Source: Cushman & Wakefield Research, Real Capital Analytics
*2012 is through November