Methodology: This analysis differs from our previous analyses on net investments, as it includes transfers to lenders and investors as a result of foreclosures.
The capital groups in the industrial sector are behaving in a fashion that is similar to other property types, but not uniformly. The share of industrial assets reclaimed by lenders from their traditional investment peers has remained below levels registered in the other property sectors. In addition, the influence of public REITs and cross-border investors is subdued in the industrial sector, unlike other property types where these groups are wielding greater influence. Public REITs have added just $107 million to their industrial portfolios, compared to $4.4 billion across all property types.
Following the broader all-property trends discussed in the overview, equity funds continue to divest themselves of industrial property. Cross-border investors have registered practically no activity in the industrial sector this year, continuing their basic holding pattern of the past two years.
The trend of private REITs becoming more active in comparison to other investment groups is particularly evident within the industrial sector. Although private REITs have been unable to achieve the acquisition volume of their investment peers, their portfolio has grown the most over the past five months, as they have had relatively few sales to offset their new assets. Private investors, however, have been the largest net sellers of 2010. As in other property sectors, this investor group’s dispositions have outpaced its acquisitions over the entire cycle.
Data subject to future revision; based on properties & portfolios $5 mil and greater.
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