According to the data:
The current annualized rate of growth (4Q2010) is 1.24 percent, which is in line with the historical average of 1 to 2 percent.
Prior to 3Q2010, industrial space demand had been in "contraction mode" marked by seven consecutive quarters of negative demand for industrial space. In 4Q09, demand declined at an average annualized rate of 1.2 percent, which was below the rate of decline in the prior quarters of 2009.
The two main variables used in the calculation - Purchasing Manager Index and Index of Manufacturing Output (see below for details) - are strong and suggest...
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...
Good News from Commercial Real Estate
CMBS activity has flourished in the past few weeks with more than $6.5 billion in new securitization coming to market. In addition, Freddie Mac brought two multifamily-backed offerings totaling $1.86 billion to market.
The activity in February alone is almost two-thirds of all CMBS deals offered last year - and for some is reminiscent of 2007 when commercial mortgage-backed securities offerings were at their peak, which has the commercial real estate market bullish and fretful at the same time.
Read the entire article HERE
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...
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...
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...
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.
The nation's busiest cargo complex posted 18% growth in combined container traffic for October, adding another strong month to the ports' recent string of double-digit growth.
"Retailers were concerned about a shortage of cargo containers and they ordered early this year to make sure they had enough goods for the holiday season," said Nancy Sidhu, chief economist at the Los Angeles County Economic Development Corp. "The fact that these numbers were still higher than what had been 2009's best month is significant."
The ports of Los Angeles and Long Beach handle more than 40% of the nation's...