Market Data
Regional Outlook
East
Washington, D.C.’s Big Deal
More than seven years in the making, Washington, D.C.’s
southwest waterfront project known as The Wharf broke ground in March. The $2
billion, 27-acre, mile-long mixed-use development on the Washington Channel
will include 3.2 million sf of office, residential, hotel, retail, and public
space. After three acts of Congress and seven City Council votes, the first
$800 million phase will complete in 2017. DevelopersPN Hoffman and
Madison Marquette will add 200,000 sf of retail, more than 400,000 sf of office,
a hotel, condos and apartments in the first phase.
National
Self-Storage Trends
“Nationwide, the median price [for self-storage facilities] increased 11 percent last year to $73 psf. The price psf for assets in the West and Midwest outpaced the rest of the nation, rising 22 percent to $80 psf and $62 psf, respectively.”
— Marcus & Millichap Self-Storage Research, 1Q14
West
Las Vegas Retail Snapshot
Despite the fact that Las Vegas has a retail vacancy rate of
9.2 percent, down from 11 percent, and rents have stabilized, there’s still
about 4.8 msf of vacant retail space, granted, down from 5.5 msf in 2011. But
in another version of “if you build it, they will come,” three suburban retail
projects are under construction and will add about 2 msf of additional space to
the Las Vegas market. The largest of these projects is The Shops of Summerlin,
a 1.6 msf regional center that will open in October after a five-year
construction hiatus. Tenants include several large well-known retailers, such
as Macy’s, Dillard’s, Trader Joe’s, and Nordstrom Rack. While the appearance of
these national tenants bolsters Las Vegas’ faith in itself, there’s still a
long way to go. Retail vacancy was between 3 percent and 4 percent from 2000 to
2007; today, market watchers say 7 percent would be healthy enough to ignite
some rent growth.
Source: Las Vegas Review Journal
North
“Unprecedented demand for multi-unit residential and hotels
also characterized the first six months of the year. Toronto’s appeal is on the
upswing with wealthier nations looking to safeguard their money in stable
markets such as Canada.”
— Re/Max Commercial Investor Report 2013
Midwest
South