10. Dallas-Fort Worth<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/9314-W.-Jefferson-Blvd.-Dallas.-Image-courtesy-of-VEREIT-Inc..jpg\")
<\/a>Dallas Global Industrial Center. Image courtesy of VEREIT<\/i><\/p><\/div>\n
The strength of the Metroplex\u2019s industrial market has long attracted investors. Vacancy in the metro was 4.3 percent in December, highlighting the boost in demand from the growth of e-commerce, while rents stood at $4.49 at year-end, marking a 4.3-percent year-over-year uptick. Developers have also taken note: More than 20 million square feet of new supply was underway at the start of 2021.<\/p>\n
The $1.1 billion in industrial deals closed in the Metroplex in 2020 was closely split between Class A and B assets. In one of the largest transactions in the metro, VEREIT and Ocean West Capital Partners joined forces to pay $246.7 million<\/a> for the 3.1 million-square-foot Dallas Global Industrial Center. The 14-building property in West Dallas was built in 1975 and is leased to The Home Depot.<\/p>\n9. Denver<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/11900-E.-Cornell-Ave..jpg\")
<\/a>11900 E. Cornell Ave.<\/p><\/div>\n
Denver is one of the nation\u2019s fastest-growing industrial markets in terms of inventory: At the end of 2020, the metro\u2019s 8.3 million square feet under construction accounted for nearly 7 percent of total stock, the highest among industrial markets tracked by CommercialEdge. Investor interest in the market has also grown, with 2020\u2019s $1.2 billion in deals marking a nearly 40 percent increase compared to the previous year.<\/p>\n
Digital Realty\u2019s $97.4 million sale of a 287,231-square-foot property at 11900 E. Cornell Ave. in Aurora, Colo., marked one of the market\u2019s largest deals of the year. The asset, which is a mix of industrial and data center space, was part of a larger, $557.3 million portfolio deal across the U.S. and Canada.<\/p>\n
8. Atlanta<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/8500-Tatum-Road.jpg\")
<\/a>8500 Tatum Road<\/p><\/div>\n
Nearly $1.4 billion in industrial deals closed in Atlanta in 2020, placing the country\u2019s top industrial development market<\/a> on our list. Although overall volume increased by only a modest 5.9 percent compared to 2019, per-square-foot pricing jumped up nearly one-quarter to $78, even as older assets garnered slightly more interest, with Class B investments topping $760 million.<\/p>\nOne of Atlanta\u2019s largest single-building transactions of 2020 was Granite REIT\u2019s $80.3 million acquisition of a 1 million-square-foot property at 8500 Tatum Road in Palmetto, Ga. Public records indicate a Starwood Capital affiliate was the seller. The asset opened its doors in 2019 and is fully leased to PVH Corp. for 15 years.<\/p>\n
7. New Jersey<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/50-Veronica-Ave.-Franklin-Township-N.J..jpg\")
<\/a>50 Veronica Ave. Image courtesy of Crow Holdings Industrial<\/i><\/p><\/div>\n
Boasting a tight vacancy rate of 3.6 percent in December, the Garden State\u2019s industrial market is thriving. However, even though more than $1.4 billion in deals closed in 2020, this actually was a 19 percent drop compared to the previous year due to slowing transaction velocity. Sales averaged $133 per square foot, a 24.6 increase percent from 2019.<\/p>\n
BentallGreenOak\u2019s $164 million acquisition of a 925,000-square-foot property<\/a> at 50 Veronica Ave. in Franklin Township, N.J., was the largest transaction to close. A joint venture between Crow Holdings and The Carlyle Group sold the facility, which is fully occupied by LG Electronics under a seven-year lease. The property delivered in the first quarter of 2020.<\/p>\n6. Inland Empire<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/Dedeaux-Sycamore-Canyon-Distribution-Park.jpg\")
<\/a>Dedeaux Sycamore Canyon Distribution Park. Image courtesy of Dedeaux Properties<\/i><\/p><\/div>\n
The Inland Empire\u2019s massive industrial market had a banner year in 2020, with $1.6 billion in sales. At the end of the year, rents averaged $6 per square foot, for a considerable 6.9 percent year-over-year gain, the fastest growth in the nation. At the same time, the market\u2019s vacancy rate of 2.8 percent was the lowest in the country as developers scrambled to add more inventory\u2014projects totaling nearly 15 million square feet were underway at year-end.<\/p>\n
The largest transaction in the market was Dedeaux Properties\u2019 February disposition of a 1 million-square-foot building within the 920-acre Sycamore Canyon Distribution Park in Riverside, Calif. TA Realty acquired the asset for $131.7 million<\/a>. Cardinal Health is the sole tenant of the property at 6275 Lance Drive.<\/p>\n5. Boston<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/135-American-Legion-Highway.jpg\")
<\/a>135 American Legion Highway<\/p><\/div>\n
Boston\u2019s industrial market faced some challenges in 2020. In December, the market\u2019s vacancy was 11 percent, far higher than the national rate of 6.2 percent. And although a robust $1.7 billion in transactions closed through the year, this marked a steep, 38.5 percent decline compared to 2019. However, rent growth has been strong: December rents averaged nearly $7.50, highlighting a 6.7 percent year-over-year increase\u2014the highest growth outside of California.<\/p>\n
Clarion Partners\u2019 $355 million purchase of a former Necco plant at 135 American Legion Highway in Revere, Mass., was the largest deal of the year. The seller, a joint venture between Atlantic Management and VMD Cos., had paid less than $55 million for the asset in early 2017, a little more than a year before the candy manufacturer went out of business. The asset remained vacant until late 2019 when Amazon signed an agreement to open a distribution center at the address.<\/p>\n
4. Bay Area<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/Bay-Area-Logistics-Center.jpg\")
<\/a>Bay Area Logistics Center<\/p><\/div>\n
The Bay Area\u2019s $1.7 billion in industrial deals in 2020 marked a 10.4 percent increase compared to 2019. Pricing per square foot also increased, averaging $184. Over the past decade, prices have had an average annual growth rate of 17.4 percent, up from $43 per square foot in 2010. Demand for expansive, modern warehouse space in the region, combined with a dearth of properties with large footprints, has at the same time driven rents to among the highest in the nation\u2014$10.26 as of December\u2014even as the market\u2019s vacancy is only moderately tighter than at the national level.<\/p>\n
LDK Ventures\u2019 $146.6 million September disposition of the Bay Area Logistics Center in Richmond, Calif., was the largest of several major industrial deals<\/a> closed in 2020. CenterPoint Properties bought the 707,820-square-foot property, which delivered in 2017 and features 36-foot clear heights, more than 150 dock-high loading doors and 180-foot truck courts. Located at 2995 Atlas Road, the building is fully leased to Amazon.<\/p>\n3. Phoenix<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/Southwest-Industrial-Center-I.jpg\")
<\/a>Southwest Industrial Center I<\/p><\/div>\n
Phoenix\u2019s importance as an industrial hub has grown in recent years, owing to expansive population growth and improved access to markets across the Southwest. The metro recorded more than $2 billion in transactions in 2020, a 22.3 percent jump from the year before. At the same time, the market experienced record absorption, with rents climbing 4.6 percent to $6.73 in December. Rent growth may moderate going forward, though, with 7.2 million square feet of industrial developments underway at the end of December.<\/p>\n
The Phoenix\u2013West submarket drew $952.4 million in investment activity through 2020\u2014nearly half of the metro\u2019s total. In the submarket\u2019s largest transaction, BlackRock paid $72.5 million for the 684,420-square-foot Southwest Industrial Center I at 7775 W. Buckeye Road. CBRE Global Investors had acquired the asset from Hines in mid-2018.<\/p>\n
2. Chicago<\/strong><\/h2>\n![\"\"](\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/3501-120th-Ave.-at-Kenosha-Enterprise-Park.jpg\")
<\/a>3501 120th Ave. at Kenosha Enterprise Park<\/p><\/div>\n
As the country\u2019s largest industrial market, Chicago performed well in 2020, with significant leasing activity<\/a> and notable movement on the development side. At the end of the year, some 11.5 million square feet was under construction, positioning the metro for even further growth. Transaction activity was, however, a bit more muted than in years past: Although deals topped $2.1 billion in 2020, this was an overall decline of 26.9 percent from 2019, when investment volume neared the $3 billion mark. Chicago\u2019s transaction totals have exceeded $2 billion in each of the past five years.<\/p>\nIn July, KKR paid Prologis $176 million for two assets within Kenosha Enterprise Park<\/a> in Kenosha, Wis., marking one of the metro\u2019s largest industrial deals of the year. The buildings have a combined 1.5 million square feet and are fully leased to Amazon. Prologis had developed the properties in 2014.<\/p>\n1. Los Angeles<\/strong><\/h2>\n
<\/a>Dallas Global Industrial Center. Image courtesy of VEREIT<\/i><\/p><\/div>\n
The strength of the Metroplex\u2019s industrial market has long attracted investors. Vacancy in the metro was 4.3 percent in December, highlighting the boost in demand from the growth of e-commerce, while rents stood at $4.49 at year-end, marking a 4.3-percent year-over-year uptick. Developers have also taken note: More than 20 million square feet of new supply was underway at the start of 2021.<\/p>\n
The $1.1 billion in industrial deals closed in the Metroplex in 2020 was closely split between Class A and B assets. In one of the largest transactions in the metro, VEREIT and Ocean West Capital Partners joined forces to pay $246.7 million<\/a> for the 3.1 million-square-foot Dallas Global Industrial Center. The 14-building property in West Dallas was built in 1975 and is leased to The Home Depot.<\/p>\n 11900 E. Cornell Ave.<\/p><\/div>\n Denver is one of the nation\u2019s fastest-growing industrial markets in terms of inventory: At the end of 2020, the metro\u2019s 8.3 million square feet under construction accounted for nearly 7 percent of total stock, the highest among industrial markets tracked by CommercialEdge. Investor interest in the market has also grown, with 2020\u2019s $1.2 billion in deals marking a nearly 40 percent increase compared to the previous year.<\/p>\n Digital Realty\u2019s $97.4 million sale of a 287,231-square-foot property at 11900 E. Cornell Ave. in Aurora, Colo., marked one of the market\u2019s largest deals of the year. The asset, which is a mix of industrial and data center space, was part of a larger, $557.3 million portfolio deal across the U.S. and Canada.<\/p>\n 8500 Tatum Road<\/p><\/div>\n Nearly $1.4 billion in industrial deals closed in Atlanta in 2020, placing the country\u2019s top industrial development market<\/a> on our list. Although overall volume increased by only a modest 5.9 percent compared to 2019, per-square-foot pricing jumped up nearly one-quarter to $78, even as older assets garnered slightly more interest, with Class B investments topping $760 million.<\/p>\n One of Atlanta\u2019s largest single-building transactions of 2020 was Granite REIT\u2019s $80.3 million acquisition of a 1 million-square-foot property at 8500 Tatum Road in Palmetto, Ga. Public records indicate a Starwood Capital affiliate was the seller. The asset opened its doors in 2019 and is fully leased to PVH Corp. for 15 years.<\/p>\n 50 Veronica Ave. Image courtesy of Crow Holdings Industrial<\/i><\/p><\/div>\n Boasting a tight vacancy rate of 3.6 percent in December, the Garden State\u2019s industrial market is thriving. However, even though more than $1.4 billion in deals closed in 2020, this actually was a 19 percent drop compared to the previous year due to slowing transaction velocity. Sales averaged $133 per square foot, a 24.6 increase percent from 2019.<\/p>\n BentallGreenOak\u2019s $164 million acquisition of a 925,000-square-foot property<\/a> at 50 Veronica Ave. in Franklin Township, N.J., was the largest transaction to close. A joint venture between Crow Holdings and The Carlyle Group sold the facility, which is fully occupied by LG Electronics under a seven-year lease. The property delivered in the first quarter of 2020.<\/p>\n Dedeaux Sycamore Canyon Distribution Park. Image courtesy of Dedeaux Properties<\/i><\/p><\/div>\n The Inland Empire\u2019s massive industrial market had a banner year in 2020, with $1.6 billion in sales. At the end of the year, rents averaged $6 per square foot, for a considerable 6.9 percent year-over-year gain, the fastest growth in the nation. At the same time, the market\u2019s vacancy rate of 2.8 percent was the lowest in the country as developers scrambled to add more inventory\u2014projects totaling nearly 15 million square feet were underway at year-end.<\/p>\n The largest transaction in the market was Dedeaux Properties\u2019 February disposition of a 1 million-square-foot building within the 920-acre Sycamore Canyon Distribution Park in Riverside, Calif. TA Realty acquired the asset for $131.7 million<\/a>. Cardinal Health is the sole tenant of the property at 6275 Lance Drive.<\/p>\n 135 American Legion Highway<\/p><\/div>\n Boston\u2019s industrial market faced some challenges in 2020. In December, the market\u2019s vacancy was 11 percent, far higher than the national rate of 6.2 percent. And although a robust $1.7 billion in transactions closed through the year, this marked a steep, 38.5 percent decline compared to 2019. However, rent growth has been strong: December rents averaged nearly $7.50, highlighting a 6.7 percent year-over-year increase\u2014the highest growth outside of California.<\/p>\n Clarion Partners\u2019 $355 million purchase of a former Necco plant at 135 American Legion Highway in Revere, Mass., was the largest deal of the year. The seller, a joint venture between Atlantic Management and VMD Cos., had paid less than $55 million for the asset in early 2017, a little more than a year before the candy manufacturer went out of business. The asset remained vacant until late 2019 when Amazon signed an agreement to open a distribution center at the address.<\/p>\n Bay Area Logistics Center<\/p><\/div>\n The Bay Area\u2019s $1.7 billion in industrial deals in 2020 marked a 10.4 percent increase compared to 2019. Pricing per square foot also increased, averaging $184. Over the past decade, prices have had an average annual growth rate of 17.4 percent, up from $43 per square foot in 2010. Demand for expansive, modern warehouse space in the region, combined with a dearth of properties with large footprints, has at the same time driven rents to among the highest in the nation\u2014$10.26 as of December\u2014even as the market\u2019s vacancy is only moderately tighter than at the national level.<\/p>\n LDK Ventures\u2019 $146.6 million September disposition of the Bay Area Logistics Center in Richmond, Calif., was the largest of several major industrial deals<\/a> closed in 2020. CenterPoint Properties bought the 707,820-square-foot property, which delivered in 2017 and features 36-foot clear heights, more than 150 dock-high loading doors and 180-foot truck courts. Located at 2995 Atlas Road, the building is fully leased to Amazon.<\/p>\n Southwest Industrial Center I<\/p><\/div>\n Phoenix\u2019s importance as an industrial hub has grown in recent years, owing to expansive population growth and improved access to markets across the Southwest. The metro recorded more than $2 billion in transactions in 2020, a 22.3 percent jump from the year before. At the same time, the market experienced record absorption, with rents climbing 4.6 percent to $6.73 in December. Rent growth may moderate going forward, though, with 7.2 million square feet of industrial developments underway at the end of December.<\/p>\n The Phoenix\u2013West submarket drew $952.4 million in investment activity through 2020\u2014nearly half of the metro\u2019s total. In the submarket\u2019s largest transaction, BlackRock paid $72.5 million for the 684,420-square-foot Southwest Industrial Center I at 7775 W. Buckeye Road. CBRE Global Investors had acquired the asset from Hines in mid-2018.<\/p>\n 3501 120th Ave. at Kenosha Enterprise Park<\/p><\/div>\n As the country\u2019s largest industrial market, Chicago performed well in 2020, with significant leasing activity<\/a> and notable movement on the development side. At the end of the year, some 11.5 million square feet was under construction, positioning the metro for even further growth. Transaction activity was, however, a bit more muted than in years past: Although deals topped $2.1 billion in 2020, this was an overall decline of 26.9 percent from 2019, when investment volume neared the $3 billion mark. Chicago\u2019s transaction totals have exceeded $2 billion in each of the past five years.<\/p>\n In July, KKR paid Prologis $176 million for two assets within Kenosha Enterprise Park<\/a> in Kenosha, Wis., marking one of the metro\u2019s largest industrial deals of the year. The buildings have a combined 1.5 million square feet and are fully leased to Amazon. Prologis had developed the properties in 2014.<\/p>\n9. Denver<\/strong><\/h2>\n
<\/a>8. Atlanta<\/strong><\/h2>\n
<\/a>7. New Jersey<\/strong><\/h2>\n
<\/a>6. Inland Empire<\/strong><\/h2>\n
<\/a>5. Boston<\/strong><\/h2>\n
<\/a>4. Bay Area<\/strong><\/h2>\n
<\/a>3. Phoenix<\/strong><\/h2>\n
<\/a>2. Chicago<\/strong><\/h2>\n
<\/a>1. Los Angeles<\/strong><\/h2>\n