As record levels of large-scale, offshore-driven acquisitions catalyze investment, strong capital demand seeking product and yield
The second quarter of 2015 closed with nearly $16.0 billion of transaction activity, led largely by the $5.9 billion acquisition of KTR by the Prologis/Norges Bank joint venture. The first half of the year logged $34.0 billion of transactional activity, indicating a current record-setting pace for 2015. Investment volumes have largely been catalyzed by large-scale, offshore-driven portfolio and entity-level acquisitions, as tightening industrial market fundamentals boost investor sentiment regarding rental growth, driving confidence in the near- and mid-term under-writing of industrial assets.
The acceleration in industrial investment activity is expected to continue, as an additional +$6.0 billion extended pipeline of deals is expected to close by year-end. Portfolio and entity-level investment activity represented over 80.0 percent of transactions over 200,000 square feet this quarter with investment concentrated in primary markets, driving 2.6x more activity than secondary and tertiary counterparts. However, amidst accelerated portfolio-driven primary investment, secondary market single asset liquidity is expanding at favorable relative yields. Additionally, private investors and equity funds continue to pursue regional portfolio acquisitions.
To find out more, please view our full report: Q2 Industrial Investment Outlook
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