While uneven, the recovery of the industrial real estate sector has slowly begun throughout 2011 and experts expect growth to continue into 2012 and beyond. According to the National Real Estate Investor, larger distribution centers are experiencing the most growth while outlying markets continue to have high vacancy rates and are drawing less interest. The quality of product available to investors has been hit or miss, but over the course of the year, there has definitely been a lot more of it.
Volumes of industrial acquisitions were up year over year with the third quarter of 2011 alone showing $17.8 billion in industrial properties changing hands, a 65% increase over the same time in 2010. Initial fears of a let up in activity for 2012 have been reversed as there are a lot of sellers coming to the market and a lot of buyers keeping things extremely active. Overall, large institutional investors are remaining in primary markets where value-add investors and private equity firms are dipping into second-tier markets.
To read the full article from the National Real Estate Investor, click here.