Robust interest from investors in the industrial sector drove yield compression globally in 2018, according to recent data from CBRE Research.
For example, Norges Bank Investment Management recently acquired three buildings in the U.S. and four in Europe in partnership with Prologis Inc. There have also been indications that high-net-worth investors are increasingly targeting the industrial sector.
According to Real Capital Anayltics, there was $153.62 billion in total investment in the industrial sector globally. CBRE found that yields decreased by an average of 35 basis points over the past year. Declines were more pronounced the Europe and Middle East regions. For example, yields in Stockholm fell 75 basis points while German hubs and London saw yields fall 40 basis points and 35 basis points, respectively.
Meanwhile, U.S. and Canadian industrial markets saw yields fall by an aveage of 24 basis points.
The following gallery features the top 30 markets measured by prime yields, according to CBRE, along with the year-over-year changes in each.