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 Jay Spivey. "That...
U.S. commercial real estate yields are near the highest level relative to Treasury bonds on record, a signal to some investors it’s time to buy property.
Capitalization rates, a measure of real estate yields, averaged 7.22 percent in the second quarter, based on an index calculated by the National Council of Real Estate Investment Fiduciaries. That was 429 basis points, or 4.29 percentage points, higher than the yield on 10-year government bonds as of June 30, according to data compiled by Bloomberg. It’s about 475 basis points higher than Treasury yields as of yesterday.
Can Port Traffic and Unemployment rise together?
We have read a few articles lately that indicate 2010 Los Angeles port traffic is up over 2009. For example, the below article written by the Los Angeles Times states, “Port traffic is up 21% to 369,389 containers compared with a year earlier.”
The question we want to pose is: "How can port traffic be increasing with unemployment?"
We are having a hard time understanding how rising unemployment is related to increased port traffic. We want to know where the inventory is headed as unemployment is at a record high and consumer...
Link: The Winner Is Industrial Real Estate
A great article from @izatoak , the President of The Oakstone Company
Here in Los Angeles, the home of award shows….Best Performing Real Estate Sector In The Recession… goes to…..envelope please….is Industrial Real Estate….yes we all have experienced rough waters…but we see some blue sky.. and we are all trying to keep a sense of humor as we view the Real Estate Markets. AMB Property Corp. research shows, following eight quarters of negative net absorption, national industrial availability reached a historic high of 13.9% at the end of the fourth...
‘Zombie Buildings’ May Limit Options for Tenants
Tough road if you invested in office within the last 5 years
“Now that the values of many properties purchased during the peak of the market have fallen below the balance due on the loan, some landlords are too capital-constrained to offer the tenant improvement allowances and other concessions necessary to attract tenants in today’s marketplace,” said Robert Bach, senior vice president and chief economist.”
Global Viewpoints: ‘Zombie Buildings’ May Limit Options for Tenants