The top transaction to close in the first half of 2017 was Cabot Properties’ sale of its 19.8 million square foot portfolio of 184 properties across 21 U.S. markets, which went for $1.7 billion, according to a report from Commercial Cafe. Illinois appeared 4 times on the top 20 transaction list with a total of 3.7 million square feet.
Illinois was the third most well-represented state after California and New Jersey with a total of $267 million invested in the first half of the year. The state’s top sale, Brennan Investment Group’s acquisition of Colony Realty’s Chicago portfolio, raked in $101 million and came in at number 9 on the list.
At number 11 on the list, Bridge Development’s sale of its 4-property portfolio in Illinois went to Investcorp Intl. Realty for $72 million. Bridge made the list again at number 16 with PSP Capital Partners’ acquisition of its 3-building Aptakisic Creek Corporate Park in Buffalo Grove at $48 million. Ranked at number 18 was Pannattoni Development’s $44.6 million sale for its 2-building Lockport deal.
The economy continues to shift towards modern industrial sectors, according to the Commercial Cafe report. The key drivers of industrial real estate are the e-commerce industry and revitalized manufacturing due to robotics and consumer products demand. As e-commerce keeps growing so will a need for faster deliveries and cheaper costs. This need propels the construction of distribution centers of all different sizes to create a robust network. So it’s no surprise that this asset type is gaining favor with both foreign and domestic investors.
A complete list of the top 20 industrial deals of the first half of 2017 can be found here.