Real Estate Journal — Industrial / Distribution Centers — May 27 - June 9, 2016 — 3C
www.marejournal.com
M id A tlantic
I ndustrial R eal E state & D istribution C enters
By Michael Nachamkin, HFF The Future of industrial capital is robust
C
ommercial Real Es- tate has outperformed corporate bonds, the
ity significantly increased in 2015 with single-asset trading activity at an all- time historic high. In 2016, entity-level deals are sig- nificantly off from the 2015 levels, as the majority of the core assets/portfolios traded in the prior year are not cur- rently being considered for disposition. Individual purchases of industrial real estate in 2015 surpassed 2007 levels, as did portfolio and entity- level transactions for indus- trial properties. So far, 2016 activity levels are off by 30% over Q1 2015, in part due to
the volatility in the market, stock market and capital markets. Normalization is anticipated moving forward. Global capital is increas- ing its appetite for indus- trial, not only in the top five core markets of Los Angeles, Chicago, Dallas, the Inland Empire and Northern New Jersey, but also spreading its footprint into secondary markets in the Northeast and Mid-Atlantic regions. Many of the secondary markets are seeing some of the highest growth rates in industrial sales volume with markets such as Wash-
ington, DC,-Virginia, Balti- more, central Pennsylvania and Memphis, which all saw growth rates between 75 and more than 500% from 2014 to 2015. The top five markets for industrial still show Los Angeles leading ($5.6B) followed by Chi- cago ($4B), Dallas ($3.5B), Inland Empire ($3.49B) and Northern New Jersey ($3.4B). From a national perspec- tive, there is a significant imbalance with an abun- dance of capital and a short- age of deals. This has caused yields to compress in some
core markets. As industrial investors increase their al- location, the market may see increased sales volume and deal size. Total returns for industri- al have been pretty healthy according to the National Council of Real Estate In- vestment Fiduciaries. East- ern Pennsylvania, Northern and Central New Jersey and Central Pennsylvania are among the best in the nation. Michael Nachamkin is managing director at HFF in Florham Park, NJ. n
S&P, com- m o d i t i e s and treasur- ies over the last 10 to 15 y e a r s . I n - st i tut ional capital has taken note of this trend and has con-
Michael Nachamkin
HARRISBURG, PA — Landmark Commercial Re- alty ’s Jason Grace, CCIM, Landmark’s Jason Grace receives top broker award from CoStar tinued to increase its allo- cations to this investment class. U.S. real estate activ-
Landmark Commercial Realty Inc. Central PA’s premier commercial real estate brokerage firm since 1988.
SIOR, Senior v i ce pres i - dent of sales and leasing, received the prestigious Power Bro- ker Award by CoStar , recognizing
Jason Grace
Grace as a top leasing bro- ker, within the Philadelphia market, which includes the Central Pennsylvania region. Jason Grace has enjoyed 16 years of professional service to his clients in the commercial real estate industry, special- izing in industrial and office brokerage, business park de- velopment and institutional investment transactions. “We are proud to see Mr. Grace honored as an industry leader in his field. Jason’s thor- ough understanding of the com- mercial real estate market and professional due diligence has been a true asset to his clients,” said BarbraMurdocca , opera- tions manager at Landmark. CoStar is the largest profes- sional research organization in real estate, monitoring transactions and identifying the top professionals in the industry. CoStar bestows the Power Broker awards on the most outstanding companies and agents in the commercial real estate business. Landmark Commercial Re- alty, Inc. is a full service Com- mercial/Industrial Brokerage firm headquartered in Harris- burg, PA with focus on South Central Pennsylvania. n
Choose Landmark Commercial Realty for your brokerage needs.
20 Erford Road, Suite 215 Lemoyne, PA 17043 Call us: +(717)-731-1990 info@landmarkcr.com www.landmarkcr.com
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