LIVE BLOG: JLL’s Peter Harwood on investing in industrial real eatate

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20120608-095108.jpg JLL’s Peter Harwood (left) is among the panelists on the “Investing in Industrial” panel here at the 9th annual CIP Industrial Summit. Other speakers include KTR Capital Partners’ Ryan Stoller and Venture One’s Mark Goode.

10:40 a.m. — Harwood on the state of the market in 2012: “The volume is up by about 25 percent year-over-year nationally, but it’s flat here in Chicago.”

10:44 a.m. — Stoller on the Chicago investment market: “It came roaring back last year, and now it’s stagnated. Chicago, in the eye of national investors, has lost a little bit of its luster.”

10:45 a.m. — Goode on investment sales volumes in the Chicago area: “I think there will be a lot more transactions this year among B product in terms of square footage.”

10:50 a.m. — Harwood on the makeup of tenants in the market: “Of all of the requirements out there, those larger than 400,000 SF account for 55 percent of the demand.”

10:56 a.m. — Stoller: “There’s a feeling that cap-rate compression will come soon.”

10:58 a.m. — Stoller: “When you take away the 30-foot clear, newer construction, Class-A cross-dock product, it’s still a slog out there. You have a lot of landlords who would give away the farm to lease their space up.”

11:07 a.m. — Goode: “Automotive, aerospace, pharmaceuticals … All of those industries are growing in the United States and they’re looking to B-class industrial space to make their products.”

11:10 a.m. — Harwood: “Without question, for high-quality product, we’re seeing a portfolio premium. There ought to be a premium for B portfolios … but we just haven’t seen that.”

11:17 a.m. — Harwood: “From a volume standpoint, we think it’s going to be very high in the second and third quarter, but the fourth quarter is going to be very slow because of the uncertainty surrounding the elections.”

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