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Industrial Leads All Sectors in Y-O-Y Sales Gains

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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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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