The average annual total returns of the industrial sector have outpaced all other major property sectors in institutional portfolios during the past five years, according to the NCREIF Property Index, and for good reason.

The questions are: Can this momentum continue, and where does the future of the industrial sector lie in 2017 and beyond? Following are the top three factors affecting the industrial sector this year.

Rising prices for big-box space

Large big-box industrial space continues to be an attractive asset class for investors. In addition to the lower costs associated with re-tenanting as compared with other product types, large industrial continues to receive significant demand from high-quality tenants. This pent-up demand is a result of retailers continuing to shift toward a more omni-channel approach, while new fully e-commerce companies continue to emerge. In fact, according to Colliers International, the big-box industrial sector