Market Data

Regional Outlook

South

Florida’s Big Deal

Florida’s net lease market is one of the nation’s most active, according to a recent report by Calkain Cos. and Beshears & Associates. Banks have the lowest asking and sales cap rates, averaging 4.95 percent and 5.13 percent respectively. Case in point: a Bank of America property in Fort Lauderdale, Fla., sold for close to $9.3 million, at a cap rate of 4.6 percent. CBRE sold the property for Trion Group, through competitive bidding that garnered 15 offers. Bank of America has a 20-year NNN lease on the 5,835-sf property with 12 percent increases every five years and 10 five-year options.

National

“The average warehouse/distribution facility in the U.S. is 42 percent larger than it was in 2000. When it comes to supply chain advantages, these giant facilities allow companies to experiment with different fulfillment strategies and respond to the demands of high-turnover online retailing.”

— John Morris, leader, Cushman & Wakefield Industrial Services for the Americas

North

Canadian Investment Prospects, 2015

Industrial and hotel top the list of favored Canadian real estate investment prospects for 2015, followed by multifamily, office, and retail, according to Emerging Trends in Real Estate 2015. Warehouse and hotels show the greatest increase in investor favor over 2014, while multifamily interest remains on par with last year. Investor interest in office and retail lag behind last year. Regarding geographic markets, “Western Canada will remain the place to be, buoyed by strong performance in Calgary and Edmonton,” according to the report. “Commercial and office space on the edges of the urban core looks promising — as long as it’s the right price. Speculative industrial appears strong in Alberta and the western part of Greater Toronto. Those focused on Toronto opportunities would do well to explore retail opportunities as well as multi-residential opportunities along transit corridors. And in a country with an aging population, seniors housing — well managed and in good locations — offers attractive potential.”

West

East

New York Retail Highest in the World

Asking retail rents of $3,550 psf per year on Fifth Avenue in New York are the highest in the world, according to Colliers International. Madison Avenue in New York posts the second-highest U.S. rent on the list at $1,643 psf per year, up 24 percent from last year. While the dollar figures are astronomical compared with other U.S. cities — the third highest is Honolulu at $420 psf per year — double digit YOY rent increases are found in many markets, signaling a strong comeback for retail in 2015. Of 27 markets tracked, 17 saw retail rent increases between 10 percent and 30 percent.

Southwest

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