Industrial Capital Market Update, Q4 2019

National Cap Rate Trends

 

National Industrial Market: Cap Rate Trends, 2014 Q4 – 2019 Q4

Source: REIS, Real Estate Solutions by Moody’s Analytics

 

Similar to office cap rates, industrial cap rates have remained more or less in the low 7s for the last five years.

 

Average Price per SF

 

National Industrial Market: Average Price per SF, 2013 – 2019 Q4

Source: REIS, Real Estate Solutions by Moody’s Analytics

 

The chart above segments industrial markets in the West Coast, illustrating the difference for markets driven by strong ports and correspondingly strong demand for industrial properties.

 

Sales Volume

 

National Industrial Market: Indexed Transaction Volume, 2013 – 2019 Q4

Source: REIS, Real Estate Solutions by Moody’s Analytics

 

Unlike office and retail, which have experienced relative flatness, the industrial sector has experienced a definite rising trend.  There appears to be interest for multifamily and industrial, relative to office and retail – this very much mirrors what is happening for drivers of income (rents and vacancies).

 


Analysis by Victor Calanog, PhD CRE®, Head of Commercial Real Estate Economics at Moody’s Analytics REIS. He and his team of economists and analysts are responsible for the firm’s market forecasting, valuation, and real estate portfolio analytics services. He holds a PhD in Applied Economics and Management Science, trained by a dissertation committee composed of faculty from the Wharton School of the University of Pennsylvania and Harvard Business School.

Copyright © 2020 Moody’s Analytics REIS

 

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