Market Data

Market Trends Online(4)


The Montreux Resort will replace Las Vegas’ New Frontier Hotel and Casino, the second longest operating hotel on the strip.

Las Vegas Resort Corridor Investment Activity 2006-2010

Completion

date

Project

Proposed

investment

(in billions)

2006

Red Rock Resort

$1.0

2007

Palazzo

1.6

2007

Planet Hollywood

0.8

2007

Trump International

0.5

2008

Grand Hyatt at the

Cosmopolitan

2.0

2008

M Resort

1.8

2008

Encore at Wynn Las Vegas

1.7

2009

Project CityCenter

7.0

2009

Montreux

2.0

Completion

date

Project

Proposed

investment

(in billions)

2009

W Las Vegas

1.7

2009

Fountainbleau

1.5

2009

Southern Highlands Resort

1.0

2009

Pinnacle

0.9

2010

Echlon Place

4.0

2010

Maxim

1.2

2010

Las Vegas Convention Center

0.7

2006-10

Other projects

3.6

2006-10

Total

33.0

ICSC Certifies Design and Construction

The International Council of Shopping Centers is adding a design and construction designation to its list of certifications this year. The Certified Development, Design, and Construction Professional, or CDP, can be earned by individuals with five years’ experience in the design and construction of shopping centers either as architects, engineers, general contractors, construction managers, facilities managers, retail construction managers, or store planners. Contact www.icsc.org for more information.

State Population Gains July 2005 to July 2006

Top 10 fastest-growing states

Percent
change

Top 10 states with largest population gains

Additional population

1. Arizona

3.6

1. Texas

579,275

2. Nevada

3.5

2. Florida

321,697

3. Idaho

2.6

3. California

303,402

4. Georgia

2.5

4. Georgia

231,388

5. Texas

2.5

5. Arizona

213,311

6. Utah

2.4

6. North Carolina

184,046

7. North Carolina

2.1

7. Washington

103,899

8. Colorado

1.9

8. Colorado

90,082

9. Florida

1.8

9. Nevada

83,228

10. South Carolina

1.7

10. Tennessee

83,058

Source: U.S. Census Bureau

Florida’s Top 5 Grocery Retailers

Retailer

Number of stores

Market share

Publix

643

40.7%

Wal-Mart SuperCenter

141

24.8%

Winn-Dixie

359

12.8 %

Albertsons

86

4.8%

Kash ‘n Karry

109

3.2%

Source: Florida Retail Report Spring 2007

Sale-Leasebacks Increase

CoreNet Global predicts a surge in multi-property sale-leasebacks, which corporations favor because of their speed and flexibility. Private investors, pension funds, and real estate investment trusts, among others, represent 30 percent of large-portfolio buyers, according to CoreNet research. CoreNet expects that 6 percent of property will shift from ownership to leasing in the next five years, based on survey responses, which amounts to about $72 billion of the $1.2 trillion worth of real estate that CoreNet members are expected to handle in the next five years. The most frequent cause of sale-leaseback transaction failure? Imprecise valuation.

Corporate Spies Greener Pastures Ahead

The majority of corporations are ready to go green, according to Green Perspective from Corporate America, a study that predicts the “tipping point” for green development in business could come somewhere between 2007 and 2009. Other highlights from the study include:

  • 40 percent of corporate users consider green buildings to be a high priority in their organization;
  • Almost 60 percent agree that green building would lower their operating costs;
  • 43 percent view green building as part of their company’s growth strategy.

U.S. Franchise Systems Economy Sector Demands Closer Look

Economy hotels such as Microtel should attract more attention in 2007 as their rate growth continues to outpace inflation and the cost of constructing luxury properties continues to increase, according to Jan Freitag, vice president of Smith Travel Research.

Rising Rents Reveal Non-Affordable Housing

The national two-bedroom housing wage rose to $16.31 in 2006, up from $15.78 in 2005, according to the Low Income Housing Coalition. In the past seven years the cost of rental housing has risen nearly 28 percent, outpacing both inflation at 21.3 percent growth and average household income growth at 22.2 percent for the same time period. The housing wage is the hourly wage a full-time worker must earn to afford a two-bedroom home at his community’s fair market rent.

Housing Wage Snapshot

State

Housing Wage

Hawaii

$23.53

Massachusetts

$22.65

Nevada

$16.95

North Carolina

$12.61

West Virginia

$10.10


Moscow’s Rio shopping center was named one of the best retail properties of 2006 by the Russian Council of Shopping Centers.
Colliers International

International Retail Space

Opening July 2006 to Dec. 2008

Russia

16.2 million sf

Poland

13.7 million sf

Italy

11.7 million sf

Spain

10.4 million sf

Germany

7.9 million sf

Source: International Council of Shopping Centers

Global Office Rents
As of 4Q 2006

Market

Asking rent

psf (USD)

Change from

2005 (%)

London

191.00

21.9

Tokyo

159.20

24.3

Paris

85.60

9.2

Hong Kong

75.90

30.0

New York

54.60

7.9

Toronto

51.90

2.2

Madrid, Spain

50.00

24.8

Washington, D.C.

48.10

6.0

Sydney, Australia

45.00

8.3

Los Angeles

31.40

8.7

Source: CB Richard Ellis Research

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