Site To Do Business
A look at Chicago’s Magnificent Mile shows how a new CRE database can help professionals make better, more informed decisions.
Considering the sheer amount of data available to today’s commercial real estate professionals, it’s vital to know how to properly leverage this information for success. This year, CCIM Institute’s Site To Do Business added a new comprehensive commercial real estate property database known as Market InSites, which is published by Moody’s Analytics, a global market leader in providing analytical tools to help make better and faster business decisions.
CCIM Technologies Inc. has contracted with Moody’s to provide Market InSites (formerly known as REIS Reports) at a substantial discount to CCIM designees and institute candidates. The available reports include both market reports and comp reports.
For the market reports, you have the option of selecting from multiple property types including affordable housing, apartment, flex/R&D, industrial, office, retail, or warehouse/distribution. More property types are being added in the future. After selecting the property type, the next step is to select the market area and then submarket. Depending on the property type, data is available for up to 190 U.S. markets and hundreds of submarket areas. Users can choose a specific time period (monthly, quarterly, or yearly) with reports available for download in Excel or PDF.
Take the Chicago office submarket along North Michigan Avenue (including the Magnificent Mile) as a test case to see what information is available:
- The average asking rent was $38.67 in the North Michigan Avenue submarket in 4Q2021.
- Rent in the market was down 0.8 percent from 3Q2021.
- Rent is expected to finish 2022 at $39.08 in the North Michigan Avenue submarket.
- The vacancy rate in the submarket was 8.5 percent.
- This area had the lowest vacancies in the Midwest region and 13th lowest in the U.S.
- Vacancy in the North Michigan Avenue submarket had the lowest vacancy level since 2Q2001.
The Market InSites report includes 21 pages of information on the applicable data, including asking and effective rents, competitive inventory, employment, and absorption — along with important contextual presentations in charts and graphs.
The report also includes historical and forecast data for both the overall market and submarket areas. Looking at the North Michigan Avenue office submarket, Moody’s has information going back to 1989 and can forecast to 2031. Current year information includes inventory (10.35 million sf), vacancy (11 percent), asking rent change (1.1 percent), and gross revenue per unit ($34.79).
For comp reports, you have the option of selecting either rent or sales comps and then filter by property type. Next, simply input the address or GPS coordinates to conduct the property search. Once the property is located, a map of the comps appears.
To narrow the comp set, the tool can focus the search by filtering by subcategory — such as submarket, price, price per sf, rent, vacancy rate, year built, and property size. You can also build a spreadsheet of Class A property in adjacent submarkets. In the North Michigan Avenue case, for example, you can compare similar properties in the Central Loop, West Loop, East Loop, and River North submarkets.
An example of a sales comp report for Class A office properties over the past 10 years is shown on the previous page, providing a geographical representation of where properties are selling.
Site To Do Business is a powerful tool for analyzing market demand fundamentals, and with the addition of Market InSites, CRE professionals can now leverage a full complement of powerful data tools to also analyze market supply fundamentals as well.
Each CCIM designee receives five free market reports per year, with additional reports running $50 each. CCIM Institute candidates receive two complimentary market reports per year, with additional reports priced at $50 each as well. The reports are also available to nonmember subscribers of Site To Do Business for an annual $200 access fee, which allows subscribers to receive four free market reports per year with each additional report priced at $50.
For more on this topic, check out Site to Do Business for commercial real estate professionals.