2021 Year-End and Quarterly Observations
Total fourth-quarter 2021 industrial investment sales volume in the Chicago MSA is estimated at $2.64 billion. This represents the largest single-quarter transaction volume in the market’s history while accounting for 56 percent of 2020’s total transaction volume. 40 transactions occurred during the fourth quarter totaling 26.9 million square feet in 167 buildings.
Full-year 2021 industrial investment sales volume is estimated at $6.25 billion, representing a 33 percent increase from the total annual sales volume of 2020. 113 transactions occurred during 2021, totaling 65.0 million square feet across 356 buildings.
Institutions and Advisors represented the most active buyers and sellers in 2021. The group purchased 29.1 million square feet of industrial product and accounted for $3.04 billion in acquisition sales volume, or 49 percent of overall volume. Institutions and Advisors were also responsible for selling 17.4 million square feet of industrial product, accounting for $1.88 billion in disposition sales volume, or 30 percent of overall volume.
Portfolio transactions accounted for $3.05 billion or 49 percent of the total 2021 sales volume in the Chicago MSA. A recent notable portfolio transaction was KKR Real Estate Select Trust’s acquisition of the 3-building, 923,311 square foot Veteran’s Point Bolingbrook portfolio from Crow Holdings for $155.0 million.
Another notable fourth quarter transaction was STAG Industrial’s acquisition of 1360 Madeline Lane in Elgin, a 217,843 square foot, stabilized distribution center for $30.9 million from Brookfield Properties. Additionally, Link Logistics acquired WPT Industrial REIT in the fourth quarter for $3.2 billion. WPT’s portfolio included 112 buildings totaling approximately 38 million square feet. The Chicago allocation of that portfolio included 9 buildings, totaling nearly 2 million square feet and accounting for $122 million in sales volume.
