Second Industrial Revolution

Both consumer products and buildings are moving—indeed, Jones Lang LaSalle's industrial investment sales team just closed on a $240M, 19-building portfolio in the Midwest and Southeast.
 
Forget the Avengers, here's the real team of superheros: JLL's John Huguenard, Peter Harwood, and Garry Weiss completed the sale from Pinchal & Co to Exeter Property Group, which closed last week. John says the 6M SF deed is one of the larger ones completed in the country this year and represents a group of well-maintained, well-leased buildings in B markets like Indianapolis, Nashville, and Fayetteville, NC. John says buyers are more interested in buildings with shorter-term leases where they might be able to raise rent as leases expire.

“Some buyers are being boxed out of Chicago as the prices are still too high,” John says. “So they're following the users to other markets where buildings are selling below replacement costs.” (As if Chicago needed another reasons to be self conscious.) There's a lot of equity in the deals, which are being financed at 65% LTV  or less. Buyers are also looking for geographic diversity so if one market becomes less attractive to users, others will pick up the slack, John says.

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