Investors are still sinking their dollars in U.S. industrial real estate, even with the threats of tariffs and other uncertainties facing the country’s economy.
That’s the most recent news from Colliers, which recently released its May Capital Markets report charting the performance of the main commercial real estate sectors in the United States.
And in good news for industrial real estate professionals, Colliers reported that the U.S. industrial sectors remains a favored destination for investment dollars. This isn’t overly surprising: U.S. real estate, despite its challenges, is still known as one of the safest investments. And the industrial sector, though not nearly as hot as it was during the days of the COVID pandemic, remains a solid performer.
How strong is the country’s industrial sector? Colliers reported that the U.S. industrial sector recorded $7.9 billion in sales volume in March. That’s a solid figure and is up 27% from a year ago and up 26% from February.
Other U.S. commercial sectors recorded strong performances, too.
The hospitality industry saw strong sales volume, too, recording $2 billion in sales volume in March. That is up 9% from March of 2024 and up 30% from February of this year.
The U.S. multifamily sector saw $9.2 billion in sales volume in March, up 20% on a year-over-year basis. That sales volume, though, was down 10% when compared to February.
The U.S. retail sector held steady, too, registering $4.5 billion in sales volume in March, up 30% year from the same month a year earlier. That figure was down 40%, though, from February.
The big laggard? Not surprisingly, it’s the office sector, which continues to face challenges from the work-from-home movement. According to Colliers, the U.S. office sector recorded $3.5 billion in sales volume during March. That is down 67% from the same month a year earlier and down 11% from February.
