Pump Up The Volume

Foreign investors pumped $14.4 billion into U.S. industrial real estate acquisitions in 2018.

This was up a whopping 152% year-over-year due to several large entity-level deals and 29% above the average volume since 2015.

Foreign investors accounted for 21% of total U.S. industrial real estate investment volume in 2018.

Investment from Canadian and Chinese buyers reached an all-time high, accounting for 70% of last year’s total foreign investment in U.S. industrial real estate.

The top-three U.S. industrial markets for foreign investment were Los Angeles, Dallas/Ft. Worth and Chicago, with a combined $2.4 billion in 2018.

Even when excluding large entity-level transactions (which vary greatly from year to year and can skew annual comparisons), the average annual volume of foreign investment in U.S. industrial real estate during the past five years rose by 68%, indicating strong demand for individual industrial properties and portfolios.

By Matthew Walaszek, Associate Director, Global Industrial & Logistics, CBRE.