by Erik Foster (Chicago)
As the push to secondary markets continues, our recent completion of
a portfolio sale in Milwaukee on behalf CenterPoint Properties is indicative of
this trend. The stable Southeast
Wisconsin market provides a snapshot of what we’re seeing nationally, as some investors move away from core industrial markets in search of higher yields.
This 10-building, 1.7
million square foot industrial portfolio shows the continued draw of
stabilized, institutional grade assets in solid markets. Our sale on behalf of CenterPoint is one of the largest industrial portfolio sales in the Midwest in
recent years and follows our sale last summer of a 12-building CenterPoint
portfolio, totaling 1.2 MSF near the Milwaukee General Mitchell Airport.
The Milwaukee-area
industrial market continues to outperform many major markets in the country and
has shown positive absorption over the past two years. It offers investors a
stable market that is close to Chicago and central to the Midwest’s major
transportation corridors. A lack of new construction and continued decline in
the vacancy rate will allow many investors to find added value through strong
rent growth.
The influx of capital is
driving investment activity across the country as we continue to do work on
transactions in other secondary markets such as Indianapolis, Charlotte,
Seattle and Minneapolis. The prudent investor
who is looking for higher yields is looking outside of core markets such as, Milwaukee
and other hot spots across the country.
