NATIONAL AVERAGE INDUSTRIAL RENT UP 3.8% Y-O-Y, CONCENTRATED IN COASTAL MARKETS CommercialEdge’s September national industrial report found another defining feature of the industrial real estate market this year: A growing focus on port markets. While the global container shipping market experienced explosive growth in 2020, this year surpassed previ- ous records as far as the number of containers processed, which led to rolling delays between different points in the supply chain. And, as a result of port congestion—which has even forced the ports of Los Angeles and Long Beach to extend their gate hours—industrial real estate in port markets saw the largest increases in average asking rents. Consequently, the national average rent increased 3.8 percent—although price hikes were even more significant in some high-volume markets.
than 3.8 million square feet and was built on a 142-acre lot that formerly housed an auto assembly plant. The next two completions are equally impressive in scale: A 3.6-million-square-foot fulfillment center in Nashville, TN, as well as another warehouse spanning 3.4 million square feet in Richmond, TX. Amazon’s push for more industrial space comes in the context of a consistently growing number of orders from online shoppers everywhere in the U.S., but also to ease the supply lines of the company’s operations amid global logistical backlogs. The same study found that, of largest industrial transactions from the first half of 2021, three deals
cost the properties’ new owners than $300 million each. The largest transaction—the sale of the Colorado Technology Center in Denver—cost private investment firm Starwood Capital Group $392 million in one of the largest industrial real estate deals in the state’s history. Meanwhile, in Inland Empire, a dis - tribution center leased to Costco sold for $345 million in May this year after being purchased for $215 million by CenterPoint in March 2020, highlight- ing growing investor interest in prime industrial real estate. Other notable transactions also took place in com- petitive industrial markets such as New Jersey and Las Vegas for $335 million and $247 million, respectively.
The Largest Industrial Sales in First Half of 2021
MARKET
PROPERTY NAME
SALE PRICE SQUARE FOOTAGE BUYER
COLORADO TECHNOLOGY CENTER AND LOUISVILLE CORPORATE CAMPUS A T CTC -BUILDINGS B & C
STARWOOD CAPITAL GROUP
DENVER
$392,900,000 1,672,889
Specifically, prices in Inland Empire were up by 6.6 percent
year-over-year (Y-o-Y) as demand for industrial space increased in the market, which also functions as a major corridor for goods pass- ing through the port of Los Ange - les. Meanwhile, prices in the Los Angeles industrial market itself also grew by a comparable margin of 6.5 percent. Up next in price growth were New Jersey with 6.2 percent and Seattle with 5.7 percent. How- ever, Orange County, CA, boasted the highest average rent in August at $11.42 per square foot, almost double the national average of $6.35 per square foot. At the same time, high-demand commercial real estate markets in the Southeast saw considerable price hikes: Nashville, Atlanta and Mem- phis witnessed increases of 5.4, 4.5 and 3.7 percent, respectively. Con- versely, industrial real estate in the Midwest was on the opposite end with
INLAND EMPIRE 5600 EAST AIRPORT DRIVE
$345,000,000 1,630,451 COSTCO WHOLESALE
GOLDEN TRIANGLE INDUSTRIAL PARK AND 3330 EAST LONE MOUNTAIN ROAD
LAS VEGAS
$335,600,000 2,423,341 CLARION PARTNERS
PROPERTY RESERVE
NEW JERSEY
10 EDISON
$247,000,000 900,022
INLAND EMPIRE 3994 & 3996 SOUTH RIVERSIDE AVENUE $231,200,000 1,396,576 LINK LOGISTICS
NORTHWEST CORPORATE PARK BUILDINGS I, 111, VIII, X, XIV, 2500 & 2400-2410 VANTAGE DRIVE AND NORTHWEST BUSINESS PARK I, 111, VI, VII
HIGH STREET LOGISTICS PROPERTIES
CHICAGO
$229,990,000 2,638,438
ALLENTOWN- BETHLEHEM 951 WILLOWBROOK ROAD
$201,500,000 1,031,524 CENTERPOINT PROPERTIES
MIAMI
4040 & 4210 WEST 108TH STREET
$188,400,000 1,047,495 CENTERPOINT PROPERTIES
INLAND EMPIRE 2151 SOUTH VINTAGE AVENUE
$184,170,000 766,235
DUKE REALTY
CBRE GLOBAL INVESTORS
ORANGE COUNTY IRVINE CROSSINGS - 17871 VON KARMAN AVENUE & 17836 GILLETTE AVENUE
$180,750,000 395,673
Data provided by Commercial Edge
COMMERC IAL REV I EW : : 11
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