While it is easy to point to Asia as the growth center of the world, investors should remain wary of China. While it has shown incredible GDP growth over the last decade, this is fueled by excessive credit creation. Building empty cities and manipulating currencies does not constitute real growth. In time, the piper will need to be paid,” clarified Dr. Linneman at the Global Market Outlook in New York City.
On the economy of India, Linneman said it “continues to move forward based on long-term positive demographics. However, the political climate and corruption unearthed over the past two years have made it everyone’s favorite whipping child. The government has instituted a series of reform measures intended to attract foreign capital, and put forth a recent budget focused on controlling spending, loosening entitlements, and increasing taxes, with a view toward shrinking the country’s deficit.”
“Singaporean REITs were some of the globe’s best performing stocks in 2012, a trend that should continue in 2013,” stated Dr. Linneman, “Because the Singaporean government keeps tight restrictions on real estate development, there appears to be little risk of supply outstripping demand. Demand for office and industrial space should continue, while the prices of apartments will continue their current run of consecutive annual increase.”
As recent months passed, NAI Global welcomed three new member firms in Asia and is excited to be expanding. These new members include NAI Trinitty Partners (India), NAI Malaysia and NAI Tosei Japan.
Demand for industrial property in Regina gained momentum through 2012 and will continue to do so into 2013. There are three main areas of industrial development in Regina. The three areas are the Ross Industrial Park in Regina’s northeast, the North Industrial Park in the Evraz (steel plant)area and the newly formed Global Transportation Hub.
Vacancy rates across the board are at historically low values. The rental rates have steadily increased over the past 5 years. It is thought that they may plateau in late 2013.
2013 NAI Commercial Multi-family Report from NAI Commercial gives you information on all the sales activity in the past year. It is also full of helpful tips on what areas to look for when considering a multi-family investment. There is information on what is going on with the interest rates and how they will affect the markets throughtout the year. We have identified the best markets to be looking into when considering buying and why.
In his latest white paper, “Unprecedented Global Government Intervention,” NAI Global Chief Economist, Dr. Peter Linneman, discusses the dangers and pitfalls of the extraordinary wave of global government intervention we are currently witnessing in capital markets. Citing historical examples, he demonstrates that intervention leads to prolonged periods of stagnation and uncertainty; “In all, government activity is now deterring the very investment it was hoping to spur.”
We are recovering but will we ever be Back to Historical Trends? Join us as NAI Chief Economist , Dr. Linneman, provides his insights including why our economy and capital markets are still in uncharted waters; why commercial real estate investors are in a window of opportunity; the root cause of the Euro’s problems and more.
Join NAI Chief Economist Dr. Peter Linneman for an insightful discussion on these topics and more.
Global Economic Outlook with Dr. Peter Linneman Web Conference
Date: July 11, 2012
Time: 1:00 PM Eastern / 10:00 AM Pacific
Click here to register
“There is simply not enough European bank capital to cover the losses associated with Greece and any defaults by Spain, Portugal or Italy” says NAI Global Chief Economist Dr. Peter Linneman.
In his latest white paper, “Global Economic Round-Up”, NAI Global Chief Economist, Dr. Peter Linneman, evaluates the state of the global economy in Europe, Asia and the United States including the impact of the continuing European debt crisis, the rise of China and India and the current state of the U.S. economic recovery.
The white paper addresses the future of the Euro, the rapid growth and rising vulnerabilities of the Chinese and Indian economies, and the potential for long-term economic malaise in the United States absent leadership from any branch of the U.S. government.
We are pleased once again, to present you with the NAI Commercial Multi-Family Report for 2012.
Our report provides you with:
- all the multi-family transactions for 2011 with historial comparisons with 2009 and 2010
- an overview of the Vancouver Regional Market
- separate identification of the 17 submarkets in the region
- market insight into the Vancouver, Burnaby and Fraser Valley markets for the coming year
- our “Best Bets” for 2012
Click here to view NAI Commercial Multi-family Market Report
Please review our data carefully and we would appreciate any feedback you may have on our report.
New NAI Commerical Reports Compare Commercial Property Prices, Trends & Business Practices in International Markets
NAI Commercial is pleased to present two new publications, the 2011 International Property Guide and the 2011 Global Property Prices & Trends.
The 2011 International Property Guide provides insight into key local business customs and practices for 60 countries around the world:
Clicking here to view NAI Commercial 2011 International Property Guide.
The 2011 Global Property Prices & Trends report highlights key demographic data along with current rental rates and investment yields for 140 global markets:
Clicking here to view NAI Commercial 2011 Global Property Prices and Trends Report.
After experiencing an economic slowdown as well as a recession, the situation improved noticeably in the United States as 2010 drew to a close. Although these economic conditions are not yet ancient history,they are slowly fading away, showing us a glimpse of easier times.
Since 2011 began, several industries have seen improvement: more people are buying, residential unit sales are improving and tourism is increasingly present. The automobile industry is also experiencing regrowth along with other important sectors. This regrowth is slowly progressing towards Canada and, particularly Quebec, where multiple projects are currently underway. These changes reflect the economic recovery taking place in the province. More >
Our prediction for 2010 did come true. Some of the largest institutions were sellers. Transglobe and Boardwalk Equities were both sellers, although Cap REIT was a buyer. We saw demand stay strong as the multi-family sector is considered one of the few safe places to invest. Good product will be a rare commodity as most investors are long-term holders. We expect prices will stay flat with capitalization rates hovering around 5% unless rents go up dramatically, which we do not expect. We expect interest rates to remain stable around the 3.75% range for five year CMHC fund through to June 2011. Vacancy rates may rise slightly.
Please visit our website at www.naiapartments.ca for the full report.