LOS ANGELES—There is runway left in the industrial cycle, andone clear sign is the under allocation of institutional capital inindustrial. "Institutional capital is still underallocated in industrial," said Don Ankeny,president and CEO of Westcore Properties said onthe Investment Leaders panel at RealShare Industrial West lastweek. "It is hard to find $100 million deals, and when you have $1billion that needs to get out, it is difficult. So, I think thatindustrial acquisition is going to stay strong because of theamount of capital that needs to get out."

Ankeny's fellow panelists—Michael Boss,director of global real estate at TIAA-CREF, andAlan Carmichael, VP of investments atAlere Property Group—agreed that there is stillrunway left, despite being cautious about the possibility of downturn. Much oftheir concern was due to the global economic volatility. Bosscalled the current climate the seventh inning stretch, but saidthat if you look only at industrial fundamentals, things are good."All signs are pretty healthy in the industrial sector," he said."All things outside are concerning."

The panelists also questioned how you compete with a phenomenalyear like 2015, where industrial did $56 billion, 20% higher thanthe previous best year. "We are at double-digit growth," said Boss."That is a little concerning because where do you go from there?"Boss added that he thinks the industrial market will move from caprate appreciation as the key metric to NOI growth. "We think thatis where you need to go in this cycle."