Clarion Partners has purchased a 3.7 million-square-foot industrial portfolio for more than $200 million. The seller was The PAULS Corp.
The portfolio spans across four cities: Atlanta, Dallas, Denver and Las Vegas. Tenants include United Parcel Service, Simmons, M S International, Whirlpool, SITCO Lumber and Cardinal Health.
Industrial was the lone U.S. property sector to show a year-over-year transaction volume increase in 2017, growing 23.3 percent to nearly $60 billion, according to JLL’s H2 2017 U.S. Investment Outlook.
Volumes were down across the office, retail, multifamily and hotel sectors. While a drop off in large trades was a driving factor to decreased volumes in 2017, interest in U.S. commercial from investors domestic and abroad remains strong, and the proportion of offshore capital holds steady.
Last year was the second biggest year on record for industrial transaction volumes, trailing only 2015, growing 25 percent over 2016. The sector saw average vacancy reach new lows below 3 percent and average rents reach news highs at $5.49 per-square-foot. The continued expansion of e-commerce users has been a leading factor in robust fundamentals.
