Industrial Investment Real Estate Recovering
Posted by dan wagener on Wed, Mar 16, 2011 @ 02:09 PM
We just saw a fantastic capital markets 
report from The CBRE National Partners. CBRE notes Industrial investment sales saw a dramatic recovery during 2010. Every major market saw positive absorption in the United States. This recovery can be attributed to an abundance of both debt and equity capital in the marketplace. It is believed cap rates will continue to compress during the second half of 2011. Low interest rates along with the return of debt and equity will drive transaction volume. Here is a list of highlights from the CBRE 2010 Year in Review:
• Total industrial investment volume increased by 112% from $6.7B to $14.2B (excluding user sales).
• Transactions grew from 553 to 1,110.
• Core stabilized property was the prime focus of the larger institutional investors during the first half of the year.
• Cap rates declined in every major market throughout the year by as much as 150-250 basis points.
• Lenders are increasing risk and tolerance.
These are all good indicators that the market is shifting and barring any major disasters in the US we should continue to see the industrial real estate sector improve through 2011.
If you have a real estate project that you wish to discuss, please call or email me anytime.
Regards,
Dan Wagener, SIOR, CCIM
(847)417-9713
dwagener@wagenerequities.com