By Alexis Maltin on August 10th, 2021
The U.S. industrial sector is booming. The market has shaken off the challenges of the Covid-19 pandemic and even benefited from some of the changes wrought by the crisis.
In the chart below we show the top markets for industrial commercial property sales in H1 2021. Of the top 25 markets, 12 achieved a record high level of transaction activity for the first six months of a year, as highlighted in orange.
As it had at the end of 2020, the #1 spot in the rankings belonged to Los Angeles. The $3.2 billion of activity in H1 2021 came in 13% higher than this market’s previous record level for a midyear.
The Inland Empire moved up three slots on the list to #2 position, its highest rank in Real Capital Analytics records. Six deals valued at $100 million or greater took place in the first half of 2021. One such transaction was Costco’s $345 million purchase of a 1.6 million square foot distribution facility. The sale was the highest price ever paid for an industrial asset within the Inland Empire.
Demand for distribution and logistics assets helped fuel Houston’s climb from the #8 rank at the end of 2020 to its highest ever rank of #4. Half of all Houston’s industrial investment was tied to the sale of assets with some distribution capabilities. Three of such assets were Amazon-tenanted warehouses, totaling nearly 2 million square feet.
At #25, Reno moved up 24 slots from its year-end rank, the biggest jump by any market. Transaction activity was boosted by a single portfolio focused on Reno, sold to Starwood Real Estate Income Trust by Blackstone’s Link Logistics.
© Real Capital Analytics
A version of this article first appeared in the Q2 2021 edition of US Capital Trends. Clients of Real Capital Analytics <<click here>> to download US Capital Trends from the RCA website.
To learn more about how RCA’s reports, data and tools can inform your investment decisions, contact us.