Middle Market Industrial Sales Jump in 2018

Richard Tovar

Middle market industrial transactions jumped this year. With only two months left in the year, industrial transactions have nearly topped 2017 volumes. Next year, however, industrial sales activity may wan, thanks to increasing pricing. Already, investors are showing hesitation and transactions are taking longer to close. Moon Lim and Richard Tovar have joined JLL in the firm’s Los Angeles Capital Markets team to focus on the Vernon industrial market.

“If you look at Vernon transaction’s 2017 there was a velocity of over 4% with approximately 44 transactions. Year to date 2018 the market has exceeded 40 transactions with 2 months remaining,” Tovar, a VP at JLL, tells GlobeSt.com. “To say the least the industrial market has been strong. Looking back, 2017 we found buyers willing to meet the demands of aggressive sellers. Class-A industrial space continued to climb reaching 20% increases in value over year prior. Now, moving towards the tail end of 2018 we have finally begun to see some push back from buyers on pricing. Transactions seem to be taking longer as buyers re-evaluate.”