The industrial sector has a lower share of distressed assets compared with other commercial real estate property types, according to a third-quarter leading indicator report by CB Richard Ellis Inc.

Of about 9,960 properties valued at $154 billion listed as “troubled” in the second quarter, only $7.9 billion worth of industrial classified properties were included, according to The Real Capital Analytics Troubled Asset Radar.

“This category is a catch-all and includes assets where a loan default has occurred or is imminent or the sponsor faced financial trouble or bankruptcy,” CB Richard Ellis said.

Over the past three quarters, the report said, investor demand for assets with steady cash flows has helped to moderate a cap-rate increase that began in 2007. Since mid-2009, industrial cap rates flattened out in a range of 9 percent to 8.8 percent.

The report said the flattening has surprised some investors who have been anticipating the 0.5 percent to 0.7 percent annual increases in cap rates, which began in 2007, would continue into the coming years.

“There is little to be gained at this point by waiting for further cap rate increases, and if this thinking is driving an investor’s decisions on market timing, one is likely to overshoot the opportunity to buy into this market as the fundamentals improve,” CB Richard Ellis said.

“This is not to say that the situation is rosy for the industrial sector. More leasing distress at the asset level may be on the way with rising availability rates and still-weak tenant demand. For the industrial sector overall, however, the shock from cap rate increases has come to an end.”