2013 Construction Uptick
construction was subdued in 2012, commercial construction spending will
accelerate by 5.2 percent this year, according to Associated Builders and
Contractors. Office construction spending is expected to rise 10 percent, with
lodging up 8 percent, healthcare up 5 percent, and manufacturing up 5 percent.
— Slower economic growth, weaker 3Q12 fundamentals, and
Superstorm Sandy led PwC to lower its revenue per available room expectations
for the 2012 and 2013 lodging sector. Prior to October 2012, RevPAR was growing
at 7.5 percent; PwC now expects an increase of 6.6 percent in 2012 and 5.4
percent in 2013.
— “The industrial sector is where the apartment sector was
two years ago,” for international gateway cities and distribution hubs, says a
contributor to the Emerging
Trends in Real Estate 2013 Survey. Large-scale users in those markets are vying for
specialized and build-to-suit space.
— The Freddie Mac Multifamily Research Group predicts 1.7
million new multifamily renters between 2012 and 2015 if today’s slow recovery
continues, and 1.6 million if there is no recovery. In an accelerated recovery,
a rebounding housing market will siphon off some renters but still add 1.0
million additional renters in the market.
— “The Office Index was up by 6.5 percent over year-ago
levels as office-using employment growth outpaced overall employment growth
during the past year, attracting a return of capital and a subsequent rise in
pricing,” reports CoStar’s Commercial Repeat-Sale Indices. Investors looking
for alternatives to high-priced multifamily properties are also pushing up
“The stage is set for a much stronger rebound in the retail sector,” says
Cassidy Turley economist Kevin Thorpe, who notes that consumers’ debt service
ratio looks as healthy as it did in 1993. Net demand for community and
neighborhood center retail space ended 2012 at 15 msf, easily the strongest
year in the recovery, Thorpe notes.
CCIM Deal Makers 2012
In 2012, CCIM designees reported
participating in transactions totaling more than $1.7 billion. That’s the total
amount of deals recorded in the CCIM Deal Makers column in the six issues of
2012 Commercial Investment Real Estate. Below is the breakdown by