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Key Takeaways
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US industrial investment reached $33B in Q2, up 28% year over year for an eighth straight quarter of double-digit growth.
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The sector’s gains came broadly from individual-property deals rather than a small number of portfolio or corporate transactions.
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Industrial finished just behind multifamily in Q2 volume, while data centers and senior housing also posted sharp investment gains.
Industrial investment is emerging as one of the broadest parts of the US CRE recovery Savills reported $33B of industrial and logistics investment in the second quarter, up 28% year over year. The gain marked an eighth consecutive quarter of double-digit growth and was driven by individual-property activity
Industrial Investment Broadens
The industrial sector’s $33B quarter placed it just behind multifamily at $36B. The quality of the growth was different Industrial activity rose across individual-asset acquisitions instead of depending on a major portfolio or corporate takeover
That points to wider liquidity across logistics and warehouse properties. It also contrasts with the broader market, where portfolio investment rose 60% to $35B while individual-asset sales increased only 10%. Total US CRE investment reached $131B in Q2, up 20% from a year earlier.
Multifamily Shows a Different Mix
Multifamily remained the largest investment category in the quarter, but volume was essentially flat year over year. Savills said apartment investment would have fallen about 10% without Affinius Capital’s $3.5B take-private acquisition of Veris Residential.
Apartment fundamentals did improve. The sector absorbed more than 187,000 units in Q2, lifting occupancy to 95.5% as completions moderated. Even so, elevated supply continues to weigh on parts of the South, where more than one-fifth of units are offering concessions. That makes industrial’s broader transaction growth more notable.
Other Sectors Depend More on Big Deals
Retail investment increased 16% to $18B, but a TPG-led consortium’s $2B acquisition of ECHO Realty drove much of that gain. Individual retail-property transactions rose 6%. Data centers surged to $8.4B, nearly 20 times the year-earlier level, though the comparison started from a low base.
