We read another fantastic industrial market report written by Rene Circ at Grubb & Ellis. The report explains how 2011 is shaping up to be the second best year in terms of supply/demand fundamentals on record in the United States.
Here are the key take-aways:
Industrial vacancy in the United States is close to 9.5%; a level not seen since 2007.
Rents on average are only 15-30% below their pre-recessionary peaks.
90 million square feet was positively absorbed this year.
Rents have stabilized as demand has outpaced new supply.
New completions will double in 2012...
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...
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.
Story from Globe St.
BALTIMORE-Multifamily has been the rock star commercial real estate asset class for some time. Signs, though, are pointing to a contender for that title: industrial--especially properties on the Eastern Seaboard.
Case in point, the recent trade of 1900 Clark Rd., a 613,000-square-foot distribution center in the Havre de Grace submarket. It sold for $26.4 million--a 35% increase from the last time it traded in September 2009. “Nothing else changed about this product,” Cassidy Turley’s Jonathan Carpenter tells me. “The cap rate was just north of 7% with this...
A great article on Industrial Real Estate. We agree with CBRE. Industrial Real Estate will rebound very fast. The Prologis/AMB merger will create some great opportunity as they reposition their global portfolio. CAP rates will compress as long as interest rates stay low.
To explore the topic of investing in industrial real estate we need to take a look at the sector's recent performance and the trends that are evolving and emerging in 2011. U.S. industrial investment transaction volume in 2010 was $18.9 billion which represents a 77% improvement over 2009 but it is still 65% below the average...
The formal vote comes amid a gradual change by the giant pension fund after losing 42% of the value of its real estate portfolio during the recession.
Marc Lifsher, Los Angeles Times
February 15, 2011
Reporting from Sacramento —
After losing 42% of the value of its extensive real estate portfolio during the recession, the state's biggest public pension fund has approved a formal plan to pursue a less risky investment strategy.
Board members of the $229-billion California Public Employees' Retirement System endorsed a plan to shift away from residential properties, raw land and highly...
After visiting Atlanta, Dallas, Chicago, and New Jersey over the past 5 weeks, we definitely agree with the below article. We have heard first hand that the overall industrial market should expect to see continued positive absorption in 2011.
By Paul Bubny
NEW YORK CITY-Absorption across the 34 industrial markets tracked by Cushman & Wakefield turned positive at the end of 2010, for the first time since the second quarter of 2008, the firm said Tuesday. Along with an uptick in leasing, a 74% year-over-year decline in new construction proved to be a boon in terms of industrial vacancies.
ING Lends $42Mln for 4 Industrial Properties
Wednesday, 02 February 2011
ING USA Annuity Life and Insurance Co. has provided $42 million of financing for four industrial properties that were recently purchased for $91.8 million by Industrial Income Trust.
The loan matures in 2040, but is expected to be repaid in 2020. It carries a rate of 4.81 percent and amortizes over a 30-year schedule.
The four properties that serve as collateral are:
- an 842,000-square-foot building in Hagerstown, Md., that is fully leased through 2016 to Home Depot, for which the REIT paid $41.2 million;
This is a great article. We believe consumer spending and confidence will create jobs and lead us out of this economic downturn.
Please read this great article by Don Lee at The Los Angeles Times
January 29, 2011
The economy grew at a 3.2% annual rate in the last three months of 2010, driven by stronger consumer spending and trade, the Commerce Department reports. Economists expect the recovery to pick up momentum this year, though a shadow still looms over employment.
Reporting from Washington —
The American economy registered moderately stronger growth in the final three months...