Industrial Transactions Rise Slightly, but Owners Averse to Distressed Sales
- Sep 30, 2008
August saw the sales of significant industrial properties jump slightly from the previous month, but price tags for such assets were lean, according to Real Capital Analytics Inc.’s latest Capital Trends Monthly report on the sector. The value of closed transactions came in at only $1.6 billion, and while another $1.5 billion worth of deals were under contract at the beginning of September, given the fiscal crisis, the future of some deals that haven’t closed yet may be up in the air. The good news is that the industrial segment is less susceptible to distressed transactions. About 1.6 percent of industrial properties and 1.2 percent of the total transaction value of properties sold in the third quarter were distressed. That compares with nearly 4 percent of properties and almost 9 percent of volume of the industrial, apartment, office and retail sectors combined (see chart titled “Going Up?”) . However, the rate of distressed selling within the industrial sector could change significantly if lenders put pressure on developers to move properties, according to the report.