Commercial Real Estate & Business News – December 30, 2016

 
The last release of CoStar Commercial Repeat-Sale Indices (CCRSI) data for November 2016 found CRE pricing continuing its upward trek, with both of the major composite price indices advancing by more than 1% in the month of November, having already eclipsed their previous peaks and accelerating in November, exceeding their average growth rate for the January-to-October period...»

 

For all its ups and downs, U.S. commercial real estate enjoyed another banner year in 2016, thanks in large part to the unprecedented run in multifamily rents and property values and the fact that the U.S. continues to be viewed as a 'safe haven' by global property investors...»

 

Continued employment growth will buoy a strong year for the apartment industry in 2017, according to a new Berkadia market forecast. Apartments nationwide will enjoy a reasonably strong year in 2017, buoyed by continued employment growth (a rise of more than 2.7 million jobs, or 1.9 percent), Berkadia predicated in its 2017 Market Forecast. The company estimates vacancies nationwide will edge down 20 basis points to 5.1 percent, even as more than 320,600 new units are put on the market...»

Fresh data may confirm that the recent heyday for apartment construction is over. Fewer newly-constructed apartments are being rented out, according to figures released early in December by the Commerce Department. The "absorption rate" - whether an apartment has been rented within three months of completion - was 58% in the second quarter of this year, down from 66% in the same period in 2015 - for a smaller pool of apartments...»

Largely driven by the expansion of e-commerce, and the subsequent need to reconfigure the supply chain, the US industrial market has outperformed the overall economy since at least 2011. And as the New Year approaches, most experts don't believe the sector will experience a slowdown, at least in the short-term...»

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