UPS is projecting one of the strongest holiday peak shipping seasons ever. “The parcel giant expects to handle 58 million tracking requests on its busiest day during this year’s holiday season despite a shaky economy and high unemployment.”1“It’s likely this peak season will be bigger than last year”, chief marketing officer Alan Gershenhorn said Wednesday.1Strong online sales are good news for the industrial real estate sector and the economy. Tenants like UPS and FedEx depend on regional distribution warehouses to distribute goods efficiently to customers.As long as merchandise needs...
As the Panama Canal expansion approaches, the ports of Los Angeles and Long Beach have secured funding to expand their capacity and upgrade their facilities.
Here are some notes from a recent logistics conference taken by WCL Consulting:
The ports of Los Angeles and Long Beach and the railroads of Union Pacific and BNSF will invest more than $7 billion in containerized cargo movement infrastructure.
The port of Los Angeles will invest over $3 billion on main channel deepening, terminal improvements, roadway connections and on-dock rail.
The port of Long Beach will invest $3.5...
The National Industrial Vacancy Rate Is Declining!
The Bottom Line:
• There was 31 million square feet of net absorption nationally during Q2.1
• The Inland Empire was the most dominant market in Q2. It had a net absorption of 7.5 million square feet. This was equal to 25% of the U.S. net absorption figure.1
• The national industrial vacancy rate declined 30 basis points. It is now at 9.8%.2
• The national industrial vacancy rate has not been in single digits since 2009. 2
• Nationwide industrial properties experienced a slight increase in asking rents.1
•Los Angeles is the most...
Over $2 Trillion of commercial real estate (CRE) debt will mature by 2020.
Here are the facts:
• On average, $275 Billion of CRE debt coming due every year for the next six years.1
• Currently, approximately $685 billion in CMBS loans are maturing between now and 2018.1
• Banks have $1.1 trillion in core commercial real estate loans on their books according to the FDIC, another $590 billion in construction loans, $205 billion in multifamily loans and $63 billion in farm loans.2
• The period of 2011- 2017 will be one of unprecedented stress in the CRE market, and a time in which...
Article Posted By CoStar
Falling Vacancy, Tight Supply Starting to Move Rents Up, But Meaningful Levels of New Construction Not Expected Anytime Soon.
The U.S. industrial real estate market continued to improve during the second quarter of this year even as the economic recovery lost momentum. The industrial market posted strong leasing activity, declining vacancies and diminished supply, which CoStar analysts said should set the stage for an acceleration in net absorption and rising rents in upcoming quarters.
The U.S industrial vacancy rate fell to a two-year low of 9.8%, down significantly...
• The top 10 in demand jobs in 2010 did not exist in 2004.
• The U.S. Department of Labor estimates that today’s learner will have 10-14 jobs by the age of 38.
1 in 4 workers has been with their current employer for less than a year.
1 in 2 have been there less than 5 years.
• We are living in exponential times; there are 31 Billion searches on Google every month. In 2006, this number was 2.7 Billion.
• The first commercial text message was sent in December of 1992.
Today the number of text messages sent and received everyday exceeds the total population of the planet.
•Years...
The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey provides clues to current commercial real estate asset prices and a turn around in the market. Over the past 18 months Class A commercial real estate values have increased to near peak levels. The increase is not supported by the current rental and occupancy rates. This rise in asset prices is either an indicator of investor expectations of improving fundamentals over the next three to four years or the beginning of a new asset bubble.