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Search for Industrial Leads Institutions to Class B
A lack of existing Class A industrial product on the market for sale, and competition for tenants, is pushing large institutional players to look to well-located Class B assets, Transwestern said in its second-quarter report on Chicago industrial. Dollar volume for the first six months of the year reportedly reached $1.6 billion, or $300 million higher than the first half of 2017.
“Although the majority of our institutional clients still see the need to add industrial assets to their portfolio, we are finding that they would rather purchase well-located infill assets with room for growth, than be the next group coming out of the ground with a 100,000-square-foot speculative building,” said Michael Marconi, Transwestern principal and managing broker.
Added Marconi, “Our user clients looking to purchase are having to extend their search area criteria to find acceptable properties for purchase, and even then, are struggling to find suitable options.”
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