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
