Posts tagged NAI Global Executives
If you were to look at the vacancy rates for CBD office space, retail space or even industrial, in any given market, you might be discouraged. You will find tenants working hard to maintain the space they currently occupy, extending and blending their leases in this tenants’ market. You will see property owners making hard choices about which properties are performing or underperforming, which to keep as investments and which to sell. The picture may look bleak. But if you look deeper, there is hope.
Transaction volume is on the rise. Sure, the largest properties aren’t moving yet, but brokers are working with clients across the U.S. who are taking additional space, moving headquarters, purchasing industrial production/distribution facilities. And the pace is increasing.
The recession rocked the industry to its core fundamentals, and it will take another few years before we see anything close to the transaction volume we witnessed in 2005-2007. But as investors come off the sideline, cap and interest rates stabilize, jobs come back, and consumer demand picks up, the commercial real estate market worldwide is starting to heal.
It won’t be an easy recovery, but we are on our way back!
I am often travelling to large Russian regional cities where we manage office properties and shopping centers, and I always feel how different these markets are in comparison to the Russian capital. Because they are much smaller than Moscow, they are often disregarded by foreign investors and developers. More >
After approximately two years of reluctance for logistic properties, Germany’s investment market has been recovering in that sector in 2010. More >
While it has been fun to talk about iPads and Nano chips, the next series of blogs will focus on technology implementation and support at the basic fulfillment level. I will try to keep it in plain English vs too much tech-speak, which is endemic to everyone in this technology world. More >
According to the Moody’s REAL Commercial Property Price Indices (CPPI), US commercial real estate prices have declined 42.7% since the market peaked in October 2007. However, in September the index posted the largest one month price increase in the index’s nine-year history, a 4.3% increase. Since bottoming out in the third quarter 2009, the index has generally flattened out with monthly volatility partly based on economic uncertainties and a lack of sales volume. The lack of sales volume is partly due to the lack of available mortgage funds. More >