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Industrial Sales in 2017 Might Come in Second to 2007 Market Peak


Single-asset transactions drove sales velocity last year, but the market has shifted back toward large portfolio deals.

By Patricia Kirk

Industrial sales in 2017 are expected to exceed 2016 totals, and are estimated to be at the second highest volume since 2007. Sales so far this year total $24 billion, with 245 million sq. ft. of industrial space trading hands, according to John Huguenard, international director of industrial capital markets Americas with real estate services firm JLL. In May, the most recent month for which data is available, sales of industrial properties rose 23 percent year-over-year, to $5.2 billion, according to Real Capital Analytics (RCA), a New York City-based research firm.

U.S. industrial sales peaked in 2015, but sales velocity has remained robust through 2016, when $47.8 billion in industrial properties were sold.

Single-asset transactions drove sales velocity last year