Investments

A total of 196 industrial transactions of more than $1 million were concluded between January and June 2021, representing a total industrial investment volume of $1,429,122,393.

This result is higher than the transaction volume recorded a year earlier, in the first half of 2020, when the transaction volume reached $678,890,423 for a total of 133 transactions over $1 million. In addition, the volume of industrial sales in the first half of 2021 is practically equivalent to the volume recorded over all four quarters of 2020, which is a clear indication of the high level of activity in the sector.

Thus, the total industrial sales transactions for the first half of 2021, represents 24.8% of commercial sales year to date, placing the industrial sector in second position, behind multi-residential assets. The overall capitalization rates (OCR) for multi-tenant industrial buildings fell to 4.6% at the end of the second quarter of 2021. This is a significant drop compared to the 5.2% rate recorded a year earlier, while average unitary prices went from $123.38/sf to $174.69/sf during the year, which represents an increase of 41.6%.

The OCR for single-tenant industrial properties fell from 5.0% to 4.3% between the second quarter of 2020 and the second quarter of 2021, while the average price per square foot increased significantly from $135.62 to $188.88 at the end of June 2021, an increase of 39.3%.