Market Data

Market Trends

MA17_8
MA17_6A
MA17_6B
MA17_6C
“The best opportunities are more about repurposing urban areas like the Downtown Los Angeles' Arts District. New developments won't be so reliant on cars. The recently passed Measure M in Los Angeles county will fund millions of dollars toward increasing mass transit … Without having to worry about building massive parking lots, more developers will build in spaces once considered a no-go.”
- Larry Kosmont, president and CEO of Kosmont Companies
MA17_7A
MA17_7B

Briefly Noted

Hospitality — The robust performance by hospitality will be tested as construction ramps up during 2017, according to Smith Travel Research. JLL reports RevPAR and average daily rate have risen to 3.2 percent year-to-date.

Industrial — Rents are up 8.2 percent, while 12-month net absorption is steady at 2.2 percent with still competitive cap rates holding at 5 percent for industrial properties, according to JLL. The brisk pace for total volumes in 2016 will mark the second largest rally since 2008.

Multifamily — With an occupancy rate of 96.3 percent at the end of 2016, multifamily properties defied predictions of a decline and were up from 95.9 percent occupancy in 2015, according to RealPage. While rent growth slowed compared to 2015, rents still climbed 3.8 percent in 2016, reflecting higher than historical norms.

Office — Rental growth slowed with a vacancy rate of 13 percent in the second half of 2016, according to CBRE. Gradually, the market for tenants grows stronger as the fundamentals for office soften in downtown markets, with the net absorption rates plummeting 46 percent compared to 2015. Technology companies comprise the largest share of office leases at 18.9 percent, followed by financial services at 12.9 percent, and business services at 12.6 percent.

Retail — Food-centered retail has grown explosively — 37.1 percent YoY in the first nine months of 2016, according to Cushman & Wakefield. Fueled by the rise of the foodie movement led by celebrity chefs and championed by millennials, restaurants are multiplying in top tier shopping malls. “No other retail category has generated as much aggressive expansion over the past few years as food-related retail,” says Garrick Brown, vice president of retail research for Americas at C&W.

Continue Reading

Recommended

Market Trends in Commercial Real Estate

Summer 2020

Office Renters Change Priorities in Wake of Pandemic | Recreational Real Estate on the Rise | Case Study: COVID-19's Impact on Eastern PA Big-Box Market | Hospitality Owners Have Reservations as Occupancy Drop | Seniors Housing Responds to Mounting Pressure from Pandemic | Mixed-Use Developments Can Keep It Local | Supply Chain Reacts to Social Distancing | Self-Storage Weathers Early COVID-19 Storm

Read More

The CMBS Stress Test

Summer 2020

The commercial mortgage-backed securities market is particularly vulnerable amid the COVID-19 pandemic, with borrowers and lenders looking for creative solutions to unprecedented problems.

Read More

Market Trends

Spring 2020

Coworking Instability Tempers Office Volume Up, Price Down in Land Deals | Restaurants Streamline Delivery-Only Service | Eat, Sleep, Play at Video-Game Hotel | Unlikely Candidates Top Cities with Biggest Rent Increases | An Academic Look at Mixed-Use Zoning | Industrial Remains Hot Despite Cooling Forecast | Miami Votes for 9-Month Ban on Self-Storage Construction

Read More

Market Trends

Winter 2020

Multifamily Holds Steady Amid Fears of Slowdown | Offices Near Transportation Hubs Draw Interest | Experts Think Industrial Is (Barely) Overpriced | Community Areas Gaining Space in Hotels | Hemp Market to Boom in Next 5 Years | New Jersey Tops List of Self-Storage Markets | Developments Aim to Mix City, Suburban | Mass Retailers in Store for Big Growth?

Read More