Market Data

Regional Outlook

South

Florida’s Big Deal

Investors aren’t wasting away in Margaritaville, they’re buying hotels: since May 2013 four hospitality assets in and around Key West, Fla., have sold. Ashford Hospitality Trust bought the 142-room Pier House Resort and Caribbean Spa for $90 million; LaSalle Hotel Properties acquired the Southernmost Hotel Collection for $184.5 million; Carey Watermark Investors bought Hawks Cay Resort, in Duck Key, Fla., for $149.4 million; and Inland American purchased the Hyatt Key West Resort and Spa (pictured) for $76 million. Along with healthy hospitality revenues and occupancies, Key West’s limited infrastructure prevents new hotel development and increasing air travel is making it more accessible to tourists. But these purchases also represent a wider investor interest in resort properties, accounting for $2.5 billion in transactions globally through August 2013 and 18.4 percent of all hotel transactions, according to HotelNewsNow.com.

“The U.S. investment sales market continues to broaden geographically. This has been most notable in Atlanta, where office investment volumes so far have surpassed each of the prior two years by more than 50 percent.”

— Jones Lang LaSalle, 4Q2013 Global Market Perspective


Midwest

Indianapolis Apartment Stats

Indianapolis has turned the corner on distressed multifamily properties, according to George Tikijian III, CCIM, senior managing director of Tikijian Associates Multihousing Investment Advisors in Indianapolis. While distressed sales comprised more than half the multifamily sales activity from 2010 to 2012, in 2013, only 1,886 distressed units sold, compared with 6,432 non-distressed units. “Sales have been dominated by private, for-profit sellers,” Tikijian reports, “while apartment buyers continue to be primarily private equity investors, syndicated groups of high net worth individuals with an occasional purchase by private REITs. The increasing number of for-profit sales has also resulted in the return of buyers with Section 1031 exchange requirements.” For more on Indiana multifamily market opportunities, go to www.TAmultihousing.com.

National

Outlet Centers Lead Retail

“No other retail sector can say that the recession of 2009 was a good thing,” said Michael P. Kercheval, president and CEO of the International Council of Shopping Centers at the Value Retail News Fall Outlet Leasing and Marketing Convention in fall 2013. In the past four years outlet center sales have increased 28 percent, from $19.9 billion to $27.6 billion, he added. “Since 2006, 39 outlet centers have opened in North America. In contrast, there has only been one traditional mall that has opened in that same period.”

West

North

Big Lots to Close Canadian Stores

Retail discounter Big Lots will close the 73 Canadian locations it operates under the Liquidation World brand as well as Big Lots. The company acquired the Liquidation World brand in 2011, hoping to use it as a foothold to expand further in Canada, but extreme value merchandising found few Canadian takers. Big Lots is also closing its U.S. wholesale operations to concentrate exclusively on its retail stores.

Recommended

This Is the Altered Normal

Fall 2020

Esri’s data on consumer behavior, demographics, and employment can help real estate adapt in the COVID-19 world.

Read More

Building Progress

Fall 2020

Moody's Analytics Reis Chief Economist Victor Calanog, Phd, CRE, outlines how construction in many sectors will fail to meet expectations for 2020.

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 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