CHICAGO—It's well-known that the extended rise of the US industrial market keepsattracting more investors into the sector. That growing popularityhas put downward pressure on cap rates and pushed up prices, aswell as drawn buyers into smaller, secondary markets. But behind all of thestatistics, other factors are also having an influence on thedirection of the market for investment.
“Many of the largest institutional investors are under allocatedin this sector,” Kenneth J. Szady, nationaldirector for Marcus & Millichap | InstitutionalProperty Advisors, tells GlobeSt.com. Pension funds,insurance companies and other significant investors have bought upmany of the nation's top office properties, some of which can soakup hundreds of millions, causing buyers to now say, “'we've got todiversify.' That's another primary reason cap rates are solow.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
