The Trends: The Hunt for October Sales

Industrial sales volume in October came in at just $436 million, a massive 71 percent decline from the $1.5 billion worth of sales secured in September and more than 85 percent off from October 2007, according to Real Capital Analytics Inc.’s November Capital Trends Monthly report on the industrial sector. For the year, however, the property type has performed a bit better. Volume through October reached $18.6 billion, 55 percent lower than the $41.6 billion realized from January 2007 to October 2007.“These discrepancies stem from a merchant building business model that has pushed offerings through the roof at a time when both slowing demand and constrained capital have practically halted the acquisition market,” the report states. “However, the challenging environment is also creating equilibrium in two other areas that could bring buyers back into the market if capital loosens. Cap rates for offered and closed properties are both rising—more sharply for closed, actually, although offered caps are still a few points above those for closed deals, at about 75 percent.”