Philadelphia's Big Deal
Malvern, Pa.-based Liberty Property Trust sold Five Crescent Drive, a 207,779-sf office building, for $130.5 million in May. The LEED platinum property is in the Philadelphia Navy Yard, a 1,200-acre waterfront business campus developed on the site of the Philadelphia Naval Shipyard. The property was purchased by an affiliate of Korea Investment Management Co., advised by Coretrust Capital Partners LLC; CBRE Capital Market represented Liberty.
Manhattan Sees More Visitors, More Shopping
Tourism, rising employment, and increased year-over-year income have heated up Manhattan’s shopping scene. Retail sales are projected to increase 3.4 percent this year, continuing their rise from a 2.9 percent increase in 2017, and a 1.9 percent increase in 2016.
Visitors to New York City, 2017
- 61.8 million
- 2.5% increase from 2016
International Visitors to New York City, 2017
- 13.1 million
- 13.6% increase from 2016
Source: Cushman & Wakefield, Marketbeat Manhattan, Retail 2Q2018
Global Investment Surges
Of 1,108 Realtors responding to a December 2017 survey, 34 percent expected an increase in international clients buying commercial real estate in 2018.
10 Most Popular States for International Buyers:
- California -- 13%
- Nevada -- 5%
- Arizona -- 3%
- Texas -- 16%
- Michigan -- 6%
- Illinois -- 5%
- Massachusetts -- 6%
- Connecticut -- 3%
- Georgia -- 3%
- Florida -- 23%
Source: “Commercial Real Estate International Business Trends 2018,” National Association of Realtors
Best Small Cities for Job Growth
Forbes' “Best Cities for Jobs” is calculated using recent, midterm, and long-term employment growth rates, as well as current year growth and an average over the last 10 years.
Rents on the Rise
The U.S. multifamily market had a strong first half of 2018, with rents up 2.6 percent since the beginning of the year. At the end of June, year-over-year rents had increased 2.9 percent to an all-time high of $1,405.
Secondary Markets Show Largest Increases
Source: Yardi Matrix
Fitness Centers Growing in Southern California
While fitness centers may not have been primary tenants in the past, they are now among the top five retail users in Southern California. In 2017, there were 100 transactions, involving nearly 1.2 million sf in Los Angeles, Orange County, and the Inland Empire. Many are moving into big-box spaces and are even serving as anchors. Globe Street’s Petra Durnin says that clients of higher-end centers look for “unique fitness experiences,” including nearby amenities such as restaurants, coffee shops, and personal services. But there’s strong demand for smaller (15,000 sf), simpler clubs as well.
K.C. Warehouses Get Bigger
Kansas City’s warehouse space has boomed in the last 10 years, thanks to the increase in e-commerce/logistics demand. Its average warehouse size has increased 340 percent in the last decade, making it the Midwest leader in growth.