All types of real estate investors are chasing the most stable commercial property type.

Boosted by the pandemic, positive industrial real estate fundamentals are driving asset values to record highs, particularly “last mile” properties in core urban markets. And investors of all types are competing hard to pounce on the limited number of available deals.

“A range of institutional investors and REITs have continued to be active (in the industrial sector) since the pandemic began, with most top buyers closing deals in multiple months,” says Indianapolis-based Jason Tolliver, managing director of investor services at real estate services firm Cushman & Wakefield.

He notes that markets seeing the most sales volume year-to-date are Chicago, Los Angeles, Dallas, Atlanta and the Inland Empire, with the New York City boroughs, Houston, Phoenix, Boston, and Northern New Jersey close behind.

“All primary and strong secondary markets across the U.S. are performing very well and are attracting significant investor interest,” adds Los Angeles-based Michael Kendall, Colliers International executive managing director of industrial capital markets for the Western United States. “There has been a flight to safety and quality as a result of the pandemic, and U.S. industrial is seen as a safe haven.”