Blog Archives

CoStar’s Positive Industrial Outlook Comes As Commerial Real Estate Market Learns of Possible Mega-Merger Between Two Largest Warehouse REITs By Randyl Drummer January 26, 2011 Warehouse leasing accelerated sharply in fourth-quarter 2010, helping to drive down vacancy rates amid record-low deliveries of new industrial commercial properties last year, according to CoStar’s Year-End 2010 Industrial Review and Outlook. “We saw good, stronger demand in the fourth quarter, given the historic low levels of warehouse supply,” said CoStar Senior Director of Research and Analytics...

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Port of Los Angeles sets a new high in exports, and the Long Beach port sees the biggest annual increase in cargo traffic. Experts believe the recovery will continue, though not at such a rapid pace. The nation’s busiest seaport complex had a record-breaking year in 2010 with a new high set in exports at the Los Angeles port and the biggest year-over-year increase in overall cargo traffic at Long Beach since the port began keeping such records in 1971, officials said. To read the entire article, please click here.

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This is great news for the Industrial sector.  We expect imports to rise during the next 5 years as The United States regains forward momentum. The Panama Canal project, scheduled to be completed in 2014, will increase the amount of containers headed to the eastern ports.  This increase in containers will subsequently increase demand for Industrial Real Estate. McClatchy-TribuneNovember 26, 2010|1:59 p.m. Georgia and South Carolina’s $500-million Jasper Ocean Terminal is being designed to handle 7 million cargo containers a year. Among U.S. seaports, only two — Los Angeles and Long...

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The industrial market is seeing signs of stabilizing rent and high demand in prime logistic locations. By Allen Kenney 11/5/2010 In the third quarter, the four major commercial real estate sectors all showed gains for the first time since 2007, according to the latest data from the CoStar Commercial Repeat-Sale Indices (CCRSI).Overall, CoStar’s indices pegged the increase in the pricing of “investment-grade” real estate from July to September at 5.5 percent, while the “general” property pricing increased 2.3 percent in the third quarter. CoStar differentiates the classes...

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REAL ESTATE: REIT aims for $1B; targets U.S. distribution hubs By Mark Mueller Sunday, November 7, 2010 The O’Donnell Group Inc., a Newport Beach real estate developer and property manager with a prominent history in Orange County, is looking to make a billion-dollar, nationwide push into industrial buildings. The company and John O’Donnell, its founder and managing general partner, have been running area real estate companies since the early 1970s. O’Donnell Group recently announced plans to raise up to $1 billion from individual investors through a new fund,...

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Come Celebrate With Us We would like to announce that John O’Donnell, our founder, will be receiving The Lifetime Achievement Award from The UC Irvine School of Business on November 9th. This prestigious award recognizes John’s outstanding achievements in Commercial Real Estate over his 40+ years of service. Peter Ueberroth will be speaking at this amazing event and many industry leaders will be attendance. If you would like to attend, please email Becky Ezell at bezell@cgfassoc.com.

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James McCaughan, of Principal Global Advisors shares his view on CNBC. Will the Commercial Real Estate Market rebound in 2011?   James suggests that real estate is a much safer investment haven than equities.

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This is a great article written by The Financial Times. Click here to visit the article online. The trick to eating the curate’s egg is to sample only the good parts. Investors in US commercial property are showing they know how to do this. In the six top metropolitan markets – New York, Chicago, Boston, San Francisco, Los Angeles and Washington – prices have bounced. Real Estate Analytics calculates a trophy index using repeat transactions worth more than $10m in the Moody’s/REAL commercial property price index. After falling two fifths from the October 2007 peak, it is up 19 per cent...

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LEED stands for Leadership in Energy and Environmental Design (LEED). This Green Building Rating System was created to improve the environmental and economic performance of new and existing commercial, industrial, and high-rise residential buildings. LEED is a non-profit, non-governmental system promoting environmentally responsible, economically profitable, and healthy places to live and work.  The LEED movement is quickly becoming a necessity as water and electrical costs continue to increase.  Please review the below figures. The below figures document the average usage reduction...

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The following article, by Robert McGrath at CBRE, predicts lower availability as demand rises for large distribution facilities since Q1 of 2010.  We strongly agree with his position; in fact, we have begun to see a rebound in rental rates in the Inland Empire, CA. Friday, September 17, 2010 -  Boston – September 17, 2010—The U.S. industrial real estate sector’s national availability1 rate should peak at 14.2% by the end of September (3Q 2010) before falling to 14.0% in the fourth quarter of 2010 and continuing a slow descent into the first half of next year, according to new analysis...

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