Still, Foster says that “the appetite for industrial assets has not waned,” especially among foreign investors. “It's one of the fastest growing asset classes, and when you couple that with the dynamics of the European market, the negative interest rates in Germany, and the flatness of the other countries in Western Europe,” the stability and strength of the US economy looks quite appealing. “The four usual food groups will always have their place in an investment portfolio, but the savvy investor goes industrial.”

What gives the sector its present strength is the escalating demand for new and fully modern distribution facilities. Not only have e-commerce firms such as Amazon.com Inc. become a part of our everyday lives, but the demand for 24/7 delivery services means distributors have to spread their facilities throughout metro areas, including the downtown cores now popular with city dwellers.

The Hillwood purchase does not surprise Foster as the company “is a very good investor and owner with locations in good markets.” The Wall Street Journal identified the Hillwood portfolio's locations as Ohio, Pennsylvania, Dallas, Atlanta, Los Angeles and Chicago. Its biggest tenants are Amazon, Starbucks Corp., NFI, Williams-Sonoma and Wayfair Inc., according to the WSJ.

What may set GLP's new investment a bit apart is that the firm not only bought existing assets from Hillwood, but some of its pipeline of new projects. And Foster expects to see more transactions like this in the near future.

“There is not enough product available for investors to purchase,” he says. But the strength of the industrial market means investors like GLP will be very willing to “buy to-be-built product because they know it will lease up.”

CHICAGO—Investors completed several mammoth portfolio buys in the US industrial market last year, pouring billions into the robust sector and setting records. This year has been quieter when it comes to major portfolio investments, but that time may be ending. As reported in GlobeSt.com, GLP agreed this week to acquire a $1.1-billion US logistics portfolio from Hillwood Development Co. LLC.

“I believe there will be more transactions such as this as the year continues, given the appetite for industrial assets,” Erik Foster, Avison Young principal and practice leader for its national industrial capital markets group, tells GlobeSt.com. But eclipsing the amount that traded hands last year will be difficult.

In a partnership with GIC, the sovereign wealth fund of Singapore, GLP led the way last year with its $8.1-billion acquisition of the Blackstone Group's IndCor portfolio. Also in 2015, GLP paid $4.6 billion to acquire 200 facilities from Industrial Income Trust, while in another large-scale portfolio deal in '15, Prologis bought KTR Capital Partners for $5.9 billion.

According to Real Capital Analytics, last year's volume hit $78 billion. So far this year, it's nearly $30 billion.

Still, Foster says that “the appetite for industrial assets has not waned,” especially among foreign investors. “It's one of the fastest growing asset classes, and when you couple that with the dynamics of the European market, the negative interest rates in Germany, and the flatness of the other countries in Western Europe,” the stability and strength of the US economy looks quite appealing. “The four usual food groups will always have their place in an investment portfolio, but the savvy investor goes industrial.”

What gives the sector its present strength is the escalating demand for new and fully modern distribution facilities. Not only have e-commerce firms such as Amazon.com Inc. become a part of our everyday lives, but the demand for 24/7 delivery services means distributors have to spread their facilities throughout metro areas, including the downtown cores now popular with city dwellers.

The Hillwood purchase does not surprise Foster as the company “is a very good investor and owner with locations in good markets.” The Wall Street Journal identified the Hillwood portfolio's locations as Ohio, Pennsylvania, Dallas, Atlanta, Los Angeles and Chicago. Its biggest tenants are Amazon, Starbucks Corp., NFI, Williams-Sonoma and Wayfair Inc., according to the WSJ.

What may set GLP's new investment a bit apart is that the firm not only bought existing assets from Hillwood, but some of its pipeline of new projects. And Foster expects to see more transactions like this in the near future.

“There is not enough product available for investors to purchase,” he says. But the strength of the industrial market means investors like GLP will be very willing to “buy to-be-built product because they know it will lease up.”