Market Data

Regional Outlook

West

Las Vegas’ Big Deal

The Cosmopolitan Hotel and Casino brought more than the “just the right amount of wrong” to Deutsche Bank, which sunk $4 billion into constructing and running the 3,000-room property after foreclosing on the original developer back in 2008. When it opened in 2010, with a hip ad campaign and a three-story chandelier containing a cocktail bar, the property attracted a young crowd of pleasure seekers who came to party but not to gamble. Having never turned a profit on the Cosmo, Deutsche Bank sold it to the Blackstone Group for about $1.73 billion in cash.

Seattle Multifamily Stats

1Q14
Vacancy rate: 3.6%
YOY rent growth: 7%
New construction: 7,324 new units added in 2013; 16,230 units under construction
Sales volume: 2005 (peak) $2.64 billion; 2013, $2.27 billion; 2014F, $1.3 billion

Source: Kidder Mathews

Midwest

South

“With only five class A buildings with 10,000 contiguous square feet and greater available for lease in the region, Charleston’s [S.C.] market conditions appear to be healthy enough to support further construction of speculative office development.” - Simons R. Johnson, CCIM, Colliers International

East

New Jersey Industrial Market 1Q14

While New Jersey industrial markets saw negative absorption in the first quarter, investors do not seem terribly concerned, given the state’s continual decline in vacancy by more than 24 percent since 2010. However that may change in the next 12 months as 4.9 million sf of newly constructed space starts to hit the market this year – almost 22 times the historic average of new product. Central New Jersey is forecast to see the most leasing activity, as several large deals over 200,000 sf will offset the growing inventory. At the same time, smaller units under 50,000 sf will become scarce, driving investor demand and higher rents.

Source: Cassidy Turley

Boston Snapshot

Investors view Boston as a “multidimensional commercial real estate market,” according to a Colliers International 1Q14 report on the city. The greater Boston area saw $2.19 billion in sales volume in 1Q14, with every major asset class surpassing $100 million. Office and retail accounted for the majority of the increase over 1Q13’s $1.24 billion. Class B CBD office is quite sought after, going for $230 to $280 psf, and up to $365 psf in some submarkets. Even so, Boston’s suburban office market saw a 60 percent drop off in volume YOY, due more to lack of class A trophy product than a shortage of interested investors. Retail, however, saw a 534 percent increase over 1Q13, with $230 million in sales volume.

National

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