Industrial real estate investment volume in the tri-state region reached an unprecedented level of $5.24 billion in the fourth quarter of 2021, bringing the total for the year to $10.62 billion, according to a new report from CBRE.

But industrial real estate, a tight market in the Northeast, still trailed behind the 2021 investment volume for commercial office space, which was recorded at $15 billion, and  multifamily, which closed at around $17.1 billion.

In terms of year-over-year growth, the Hudson Valley region of New York saw the highest level of investment volume increases, with 170 percent growth, followed by Long Island, with 77 percent, according to CBRE, who compiled the report.

But while growth was sky high in the Hudson Valley and Long Island, New Jersey saw the highest investment volume with $5.21 billion in sales in 2021, followed by New York City with $3.55 billion.

But the New York area is not alone in growth in this sector.

A recent report from CommercialEdge showed that, nationally, industrial rents averaged $6.47 per square foot and vacancies remained at 5 percent throughout the month of April, Commercial Observer reported. 

Firms selling off physical assets in industrial real estate are making a profit with the national average sale price reaching $135 per square foot, 20 percent higher than 2021’s average. Industrial sales totaled nearly $19 billion year-to-date, according to CommercialEdge.

The current conditions in the industrial real estate market have investors looking to sink their teeth into every pocket.

A joint venture between Leste Real Estate and Iconic Equities recently announced they are looking to invest $400 million in smaller sites for logistics such as truck storage. They’re in contract to buy multiple sites across the country ranging from $5 million to $30 million, CO reported earlier this week.

Mark Hallum can be reached at mhallum@commercialobsever.com.