EAST RUTHERFORD, NJ—Jones Lang LaSalle says investors continued to bet big on New Jersey industrials in the first quarter of 2015, generating $1.76 billion in sales transactions, about the same as in the fourth quarter of 2014. Robust interest from institutional buyers compressed cap rates around the state, and in some instances drove them below five percent, JLL says in its quarterly research report.

“New Jersey's industrial sector started the year out strong, with several notable lease signings at newly developed space near the Port of New York and New Jersey helping to stabilize the Port submarket,” says David Knee, senior managing director at JLL. “A protracted and difficult winter failed to deter building owners and tenants from completing several key transactions.”

Large portfolio investment sales dominated the first quarter, led by Prologis' acquisition of eight properties, 3.2 million square feet in development sites and 2.2 million square feet of retail from The Morris Cos. for $820 million. Singapore sovereign fund GIC Pte Ltd. acquired Indcor Properties from Blackstone, with the sale including 21 Garden State industrial properties totalling 6.6 million square feet.