Twitter
LinkedIn
YouTube
Facebook
Lenders
The US industrial market has been helped out by improvements in manufacturing, capital goods shipments, and business and consumer spending. Overall vacancy is declining in the sector and a recovery is underway for many cities. As a result, the portion of US industrial stock in recovery is expected to surge over the next 15 months.
The barometer shows that the best-performing sector in the industry is the US multifamily market, which is dominated by the recovery phase of the real estate cycle and is segueing more and more into the expansion phase annually through 2014. In fact, not one of the 81 multifamily metro areas included in the barometer will be in recession over the next four years.
Information about subscribing to the PwC Real Estate Investor Survey can be found at www.pwc.com/us/realestatesurvey. Members of the media can obtain an electronic copy of the full report by contacting Scott Cianciulli at (212) 986-6667 or cianciulli@braincomm.com.
About the PwC Real Estate Investor SurveyTM
The PwC Real Estate Investor Survey, now in its 24th year of publication, is one of the industry’s longest continuously produced quarterly surveys. The current report provides overviews of 31 separate markets, including ten national markets — regional mall, power center, strip shopping center, CBD office, suburban office, flex/R&D, warehouse, apartment, net lease, and medical office buildings. The report also includes a review of 18 major US office markets including Atlanta, Boston, Charlotte, Chicago, Dallas, Denver, Houston, Los Angeles, Manhattan, Northern Virginia, Pacific Northwest, Philadelphia, Phoenix, San Diego, San Francisco, Southeast Florida, Suburban Maryland, and Washington, DC. In addition, the report covers three regional apartment markets – - Mid-Atlantic, Pacific, and Southeast.
The second quarter 2011 report also features up-to-date information relating to forecast periods, structural vacancy replacement reserves, forecast values, tenant improvement allowances, and vacancy assumptions. In addition, each issue of the Survey contains over ten tables of market data focusing on value expectations, tenant improvement allowances, forecast periods, structural vacancy, and growth rates. Also in this issue is the semiannual National Development Land Market.
About the PwC Network
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See www.pwc.com for more information.
© 2011 PwC. All rights reserved. “PwC” and “PwC US” refer to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Scott Cianciulli / Ray Yeung
Brainerd Communicators
Tel: +1 (212) 986 6667
cianciulli@braincomm.com
yeung@braincomm.com
This article comes from Hotel News Resource
http://www.hotelnewsresource.com
The URL for this story is:
http://www.hotelnewsresource.com/article55931.html
Apartment and Commercial Real Estate Investors in San Diego demand will outstrip the supply of marketed apartment and commercial real estate properties this year. Class C assets in these areas will steady in the mid-7 percent range and demand for top-tier apartment properties to the mid-6 percent range.
2011 Market Outlook
· 2011 NAI Rank: 6, Down 4 Places. San Diego will retain a top 10 ranking in the NAI.
· Employment Forecast: A 1.9% increase.
· Vacancy Forecast: 3.6%
For investment sales information with commercial real estate in Los Angeles, San Diego, Orange County, Riverside, San Bernardino — Apartments for Sale, investment property, commercial REO’s, commercial bpo’s, commercial bov’s, and commercial broker price opinions, please contact Michael Duhs, Managing Director of East West Commercial at www.EastWestCommercial.com or (949) 939-8352.
As Reported by Marcus & Millichap in the 2011 Annual Report.
Orange County apartment investment sales will outpace other major California markets for the second consecutive year, fueling considerable occupancy gains as completions slip to historic lows.
2011 Market Outlook
· 2011 NAI Rank: 5, Up 2 Places: Orange County claimed the highest position among Southern California apartment markets due to healthy employment projections and very low home affordability.
· Employment Forecast: In 2011, a 2.6% gain.
· Vacancy Forecast: 4.4% in line with the 10-year average.
For investment sales information with commercial real estate in Los Angeles, San Diego, Orange County, Riverside, San Bernardino — Apartments for Sale, investment property, commercial REO’s, commercial bpo’s, commercial bov’s, and commercial broker price opinions, please contact Michael Duhs, Managing Director of East West Commercial at www.EastWestCommercial.com or (949) 939-8352.
As Reported by Marcus & Millichap in the 2011 Annual Report.
Los Angeles County apartment market will gain traction as rehiring efforts boost rental household formation and completions. Los Angeles Apartment Sales will pick up.
Cap rates were pushed down for Class A and well-located Class B product to 6-percent range. Cap rates for assets with some level of distress and located in perimeter areas will average above 7 percent in the early part of 2011.
2011 Market Outlook
· 2011 NAI Rank: 11, Up 2 Places. Los Angeles into the top 10 apartment market.
· Employment Forecast: 1.5% gain.
· Vacancy Forecast: 4.4 % this year.
· Rent Forecast: Rents will advance 2.7%.
For investment sales information with commercial real estate in Los Angeles, San Diego, Orange County, Riverside, San Bernardino — Apartments for Sale, investment property, commercial REO’s, commercial bpo’s, commercial bov’s, and commercial broker price opinions, please contact Michael Duhs, Managing Director of East West Commercial at www.EastWestCommercial.com or (949) 939-8352.
As Reported by Marcus & Millichap in the 2011 Annual Report.
Inland Empire apartment operations will strengthen in 2011 as payroll expansion resumes and the pace of new construction remains constrained. Job gains will become a primary driver of renter demand growth. Total employment will post net gains for the first time since 2006, and occupancies will continue to rise, led by strong absorption.
Apartment Investment activity in the region will continue to improve in 2011 as long-term hold buyers purchase bank-owned assets. Opportunities to acquire REO listings and value-add properties will remain prevalent. Cap rates for these assets will average in the mid-7 percent to low-8 percent range this year. Demand for assets closer to Los Angeles County employment centers will outstrip supply.
2011 Market Outlook
· 2011 National Rank: 32, Up 5 Places. Inland Empire kept the market in the bottom 1/3 of the ranking.
· Employment Forecast: Total employment in the two-county region will expand by 1.5%.
· Vacancy Forecast: Average vacancy rate will fall approximately 100 basis points this year to 7%.
· Rent Forecast: Effective rents will increase 2.2%.
· Investment Forecast: Although REO and top-tier deals will dominate sales this year, some unique opportunities will emerge.
For investment sales information with commercial real estate in Los Angeles, San Diego, Orange County, Riverside, San Bernardino — Apartments for Sale, investment property, commercial REO’s, commercial bpo’s, commercial bov’s, and commercial broker price opinions, please contact Michael Duhs, Managing Director of East West Commercial at www.EastWestCommercial.com or (949) 939-8352.
As Reported by Marcus & Millichap in the 2011 Annual Report.
U.S. Office Vacancy Analysis 2nd Qtr 2010 (http://www.socalofficerealestateblog.com)
Decreased Office Rents Spur Orange County Market
According to the OC Register article dated August 15, 2010,“Rent Cuts Inject Life into Market”, Erika Chavez reports that the Orange County commercial real estate market has been hit hard especially for the first two quarters of 2010. Office vacancy rates have increased from 18.2% from the 1st quarter to 18.4% in the 2nd quarter.
Businesses aggressively signed leases for a reported additional 200,000 square feet causing these elevated vacancy rates for the 2nd quarter. Last year, the average asking rent was estimated at $2.30 per square foot whereas today, it falls right at $2.06 per square foot. Despite the heavy economical blow, the Orange County rental market has seen a glimpse of hope on the horizon.
Landlords are now offering extensive cuts on rent just to entice a steady stream of customers. Businesses are taking advantage of these rent cuts and seeing the potential opportunity for growth and expansion while it is still affordable.
Office Vacancy Rates Remain High Nationwide
Even though renters are eager, the nationwide vacancy rate rose 3.4 percentage points in the last year. Orange County is 4th in the category of most aggressive rent cuts. Leading the nation in rent cuts for the year is Phoenix up 4.2 percentage points, Palm Beach, FL, up 4 percentage points, and Fairfield, Conn, up 3.5 percentage points. Reports have stated that in Orange County office rents have fallen by 1.5% between the 1st and 2nd quarters of this year. These OC cuts are the most drastic by big landlords amongst the 82 nationwide markets surveyed. After 2nd quarter reports came in, Orange County had 20.7% of vacant office space.
On a nationwide scale, these astronomical vacancies have risen for a 10th consecutive quarter which has not been seen by our country for over 17 years. It is going to take a while to see any changes in this bleak market. Landlords are hoping to entice renters with discounted rent rates; however, it will take a lot more than discounted rate to turn the Orange County commercial market around.
__________________________________________________________
For assistance with Commercial Real Estate — investment sales, asset management, commercial REO, commercial BOV’s, commercial broker price opinion. Contact Michael Duhs, Managing Director of East West Commercial at Michael.Duhs@EastWestCommercial.com or http://www.EastWestCommercial.com or (949) 939-8352.
Photo Credit: www.cartoonstock.com
Bank Closures Top 100
Bank closures topped 100 nationwide to date, already exceeding last year’s calendar year. At this time last year, regulators closed 64 banks due to the recession and loans defaulting. The year 2009 had 140 bank closures. This year, however, a total of 101 bank closures have occurred so far.
This year, the U.S. will definitely see numbers far larger.
Forecasted Outlook for 2010
If this year’s bank closure pace continues the number of bank closures expected for 2010 is estimated at 200 or more, which is a 43% increase over last year’s closure.
_________________________________
For assistance with Commercial Real Estate — investment sales, asset management, commercial REO, commercial BOV’s, commercial broker price opinion. Contact Michael Duhs, Managing Director of East West Commercial at Michael.Duhs@EastWestCommercial.com or http://www.EastWestCommercial.com or (949) 939-8352.