The growing level of transactions that fell
within the larger capital deployment requirements of institutional investors largely
assisted in the developing interest in industrial assets by a broadened investor-base.
Also noteworthy was the emergence of
Asian-based capital as the largest source
of U.S. bound industrial investment in 2015.
Taking full advantage of the evolving sophistication of the industrial capital market,
Global Logistic Properties (GLP) executed
two of the largest acquisitions in industrial
history, acquiring the IndCor and IIT portfolios in February and November of 2015. The
combined footprint of the two acquisitions
was nearly 175,000,000 s.f., which equated
to roughly 90 percent of all industrial completions for the year. Additional color on the
INDUSTRIAL CROSS-BORDER INVESTMENT
SURPASSES OFFICE INVESTMENT FOR THE FIRST
TIME WITH $25.9 BILLION OF TRANSACTIONS
Source: JLL Research, Real Capital Analytics
(transactions larger than $5m)
Retail
Multifamily
Hotels
Office
Industrial
KE Y
sheer growth of cross-border investment
will be discussed in JLL’s Q4 Industrial
Investment Outlook, to be published in
February of this year.
Large Influx of FDI Helps
Establish New Yearly &
Quarterly Peaks
The broadened capital-base that is begin-
ning to allocate more resources toward
the industrial segment has contributed in
driving increased valuations on industrial
assets throughout the U.S. The fourth
quarter of 2015 helped push industrial
investment volumes to a sixth consecutive
year of growth. Additionally, the fourth
quarter closed with $20.5 billion of trans-
actional activity, making it the largest
single quarter in history. The largest
quarter by volume also helped cap-off the
largest annual total in history, pushing total
volume $64.4 billion in 2015. This volume
sets a new peak for the segment, pushing
year-over-year growth to 55. 3 percent, as
well as exceeding the previous peak set in
2007 by 21. 3 percent. Heavily tightening
demand fundamentals, as well as a cau-
tious approach to new development, this
cycle has also created an environment of
accelerated rental growth, which will be
discussed in more detail in JLL’s Q4 U.S.
Industrial Outlook, which was released in
February.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2015 2012 2013 2014
O
ffsh
or
e
in
v
estm
en
tsa
le
v
o
l
um
es
(b
i
l
l
i
ons
of
$U
S
)
$80
$60
$40
$20
$0
$9.2
$19.1
$22.3
$33.4
$40.7
$8.3
$3.5
$13
$17.7
$23.8
$29.2 $28.3
$68.1
$25.9
$19.3
Industrial FDI activity
surpasses Office by
$6.6 billion, or 34.0%
YOUNG PROFESSIONALS
