LEED certifying a commercial building can decrease:
• Energy usage by 50%
• Water usage up to 40%
The O’Donnell Group remains committed to energy efficiency with four buildings registered to be LEED certified.
For more information, please contact your local LEED AP consultant.
(*Source: McGraw-Hill Construction, Key Trends in the European and US Construction Marketplace SmartMarket Report, 2008)
Nobody knows the market for industrial buildings better than the industrial brokers. Therefore, in order to ascertain the future of rental rates, we decided to go straight to the source.
The majority of nationwide brokers project industrial rents to increase 3-5% within the next 12 months.
“Respondents in 28 markets expect positive rent growth. In addition, market statistics are starting to show rent growth for industrial properties and net effective rents will most likely outperform expectations.” (Grubb & Ellis Industrial Broker Sentiment Survey)
In closing, we at The O’Donnell...
Great article from The Oakstone
One of the industry’s closely watched “status checks” (and one I’ve been watching for years) points to a fairly positive outlook for U.S. commercial real estate in the months ahead. The quarterly report from Prudential Real Estate Investors (PREI) also details potential hiccups, including rising interest rates, so it’s well worth a read.
Here is an executive summary of Prudential’s report:
• With the economy growing at a healthy pace, commercial real estate fundamentals are finally moving in a positive direction in all sectors. Fears of a double-dip...
Doug O’Donnell attended the GRI Europe commercial real estate summit last month in Paris, France. This summit focused on European real estate investments and developments.
It's amazing how similar the situation in Europe is to that of the United States.
This is what the European commercial real estate experts had to say:
Fundamentals are becoming really important again: local presence and local knowledge are more than ever key factors to success.
Investors are looking for income producing properties, for quality assets. This leads them to core markets. Investors...
According to a report released by Global Port Tracker, container traffic for the top 10 U.S. ports is forecasted to be up 9% from April a year ago.
The article also predicts the following increases over the subsequent months in 2010:
• April? 1.24 million TEUs (+9%)
• May? 1.32 million TEUs (+ 4%)
• June? 1.38 million TEUs (+5%)
• July? 1.45 million TEUs (+5%)
• August? 1.54 million TEUs (+8%)
• First half 2011 is forecast at 7.4 million TEUs (+8%)
“These numbers are an indication that the economy is recovering and retailers are expecting continued...
We read this very interesting article on commercial real estate and inflation from the CRE Console.
The article forecasts that cap rates will rise with treasuries as the economy continues to improve. This rise in caps and treasuries is expected to drive CRE values down an estimated 17% if the spread between the two remains constant. Even if the spread between cap rates and treasuries compresses a nominal amount, values will potentially still see double digit declines.
We agree with the article. We see cap rates rising with treasuries over the next 12-24 months. This rise will drive values...
A great Industrial Article written by The Oakstone.
The heat is on in the industrial market. With improving positive absorption, very little new construction in the pipeline and the merger of two giants creating excitement, 2011 may very well be the year for this oft-overlooked corner of the real estate world.
In fact, sunnier days have already begun to make themselves evident. “There’s just a lot of positive signs in the market,” said Craig Meyer, Jones Lang LaSalle Inc. managing director & head of industrial real estate for the Americas. “It’s becoming much healthier than it was over...
We have read some amazing industrial reports this week from CBRE, Grubb & Ellis (Grubb), Cushman & Wakefield (CW), and REAL Capital Analytics (REAL).
Here are some great take-aways:
* Sales of significant industrial properties totaled $890M in February, a 33% increase from a year earlier(REAL).
* Total industrial activity increased to $18.9 billion in 2010 up 77% from 2009(REAL).
* Demand has been stronger than supply in Atlanta, Dallas and the Inland Empire(REAL).
* Rental rates remain flat, but due to the limited amount of construction activity, this may change in 2011 as the economy...
Great insight to the global economic environment from Pimco.
Q: What is PIMCO’s outlook on inflation and interest rates if the situation in the Middle East does not lead to a severe oil shock?
Parikh: Setting aside immediate oil shocks, we believe global inflation has cyclically troughed and we see a secular upswing in inflation, which naturally will put upward pressure on interest rates.
We see three key global factors as potentially adding to inflation over a long horizon:
* The degradation of sovereign balance sheets and the structural inflexibility of fiscal deficits.
* Emerging...
Article from GlobeSt.com
NEW YORK CITY-The pace of US CMBS loans transferring to special servicing has slackened since 2009, and the year-to-date tally is about one-third of what it was 12 months ago, Fitch Ratings said Friday. That being said, a slowdown does not mean a full stop: earlier in the week, Moody’s Investors Service noted that the delinquency rate for CMBS continued to tick upward last month, albeit at the more moderate pace seen since June 2010.
About 200 Fitch-rated CMBS loans have gone into special servicing since the start of 2011. That compares to 631 for the same...