Warning: ./cache is not writeable. Make sure you've set the correct relative or absolute path, and that the location is server-writable. in /home/realestatedaily/public_html/wp-includes/class-simplepie.php on line 1404
As space dries up on land, Hong Kong looks to build infrastructure underground
As Hong Kong faces up to the reality of its acute land shortage, city officials are looking to solve the territory's housing problem with a truly novel idea - they're looking at building some public […]
Over 80% of Businesses Experiencing Internet Connectivity Problems
The Value of Connectivity: What’s the Cost of Poor Digital Connectivity for Commercial Real Estate, revealing that more than 80 percent of businesses experience regular internet connectivity […]
PwC names Seattle as top real estate market in the U.S.
Seattle has been named the top real estate market in the U.S. according to a new report from PriceWaterhouseCooper. The post PwC names Seattle as top real estate market in the U.S. appeared first on […]
Smart building firm SensorSuite plots expansion after major funding round
Intelligent buildings company SensorSuite Inc., which specializes in wireless monitoring and energy saving solutions for commercial and residential buildings, has closed on a strategic venture […]
Airbnb plans to start building its own rental properties
Short-term rental platform Airbnb is planning to get around its disputes with some cities over its leases by building its own rental properties. The post Airbnb plans to start building its own […]
- The decline in large cap CRE sales volume which began at the beginning of 2016 continued into the fourth quarter of this year.
- While sales of single assets declined nine percent, portfolio sales dropped 29 percent in the last quarter, a trend which characterized most of the year.
- Commercial real estate in small cap markets continued on a divergent path, with sales volume accelerating during the fourth quarter of 2016.
- REALTORS® reported continued improvement in fundamentals and investment sales.
In Real Estate 2016 report, Navigating Through The Crosscurrents, we predicted:
- Economic growth at a slow, but steady, pace.
- Employment growth, low gas prices, and increased consumer spending would lead the Federal Reserve to raise the federal funds rate.
- Major geopolitical events would rattle the investment environment.
- Commercial real estate would remain on solid footing.
- 69.0 percent of REALTORS® closed a commercial sale.
- Sales volume rose 12.9 percent from a year ago.
- Sales prices increased 5.5 percent year-over-year.
- The average transaction value equaled $1.1 million in Q4.2016.
The REALTORS® Commercial Real Estate Market Trends measures quarterly activity in the commercial real estate markets, as reported in a national survey. The survey collects data from REALTORS® engaged in commercial real estate transactions.
- Investor demand for U.S. net-lease product remains strong, with 2016 transaction volume the second-highest annual amount in the past 15 years. Net-lease transactions are also increasing as a share of total annual investment.
- Despite rising 10-year Treasury rates and marginal so ening in net-lease cap rates, spreads remain in line with long-term averages, ranging between 300 and 400 basis points (bps). With further increases in long-term rates expected, spreads are likely to be under pressure. Furthermore, investors are likely to become more selective on asset type, lease terms and credit quality.
- Lender appetite, rising interest rates and questions regarding proposed tax reforms present headwinds for the net-lease segment. However, the overall outlook is cautiously optimistic, particularly given the considerable equity chasing yield-driven real estate in the U.S.
- Due to improving tenant demand and low overall levels of new supply, the U.S. suburban o ce vacancy rate has not increased for 27 straight quarters. The vacancy rate was 14.1% in Q4 2016, just 20 basis points (bps) above the pre- recession low in Q2 2007.
- Many previously lagging suburban markets—including multiple Florida markets, Detroit, Milwaukee, Phoenix, Long Island, Inland Empire and Los Angeles— posted year-over-year vacancy rate decreases of 200 bps or more in Q4 2016, underscoring the geographic breadth of the suburban recovery.
- CBRE Econometric Advisors projects positive net absorption and continued rent growth for the North American suburban office market through 2018. Submarkets with high-quality amenities and efficient buildings capable of handling denser employee layouts will likely perform the best.
- Investors remain actively engaged in real estate investment; 67% of Americas investors intend to be net buyers in 2017 (more acquisitions than dispositions).
- The largest share of investors (43%) expect purchasing activity and dispositions to be about the same as in 2016.
- Forty percent of investors expect purchasing activity to rise in 2017 vs. 18% who expect it to decrease.
- These results are corroborated by the record levels ($144 billion1) of capital allocated to North America for 2017. This, combined with positive growth expectations— especially compared with subdued growth (or lack thereof) in the rest of the developed world—indicates that capital in ows to the U.S. will continue to be strong in 2017.