US Commercial Property Investment Up 57% in 2011

By +Liam Bailey for ipinglobal.com

Monday 30 January 2012

Fuelled by exceptional growth in retail property and low-rise apartment investment, American commercial property investment grew 57% year on year in 2011 according to the latest data from Real Capital Analytics.

The data shows that more than 14,700 properties, each worth at least $2.5 million changed hands in 2011, with retail property investment up 91% compared to 2010 and low-rise apartment investment up 70% compared to the previous year. This was in spite of the fact that turmoil in the MBS market curbed finance leading to a slowdown in transactions in the second half of the year. However, the office and hotel sectors did see an effect from this, with transactions falling sharply in the final quarter following large year on year growth in the previous six quarters.

According to the firm the rise was fuelled by debt-laden owners selling off assets acquired during the boom years at low prices, at the same time as investors were seeking increased yields from income-producing properties.

"Buyers have started to broaden their horizons both geographically and by property type," the firm said.

This is by far the most positive data we have seen on commercial property investment in the US last year. Normally when you see such large growth it is because of an exceptionally poor performance in the previous dataset, but this is not the case here; we know that US commercial property transactions held strongly in 2010.

Read the full article at: US Commercial Property Investment Up 57% in 2011
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

The Smart Way to Choose Investment Properties

Summary: The key to a successful rental property is not getting it at a bargain basement price; the key to success is the tenant who lives there. Before you buy based on price, consider buying based on potential occupancy. Invest in great properties in great areas.

A great buy? Depends on who wants to live there!

Key Quotes:
Due to their low pricing, distressed and bank-owned properties in particular look attractive to real estate investors.


According to James McClelland, CEO and president of MACK Companies, at the heart of every successful real estate investment is a great tenant.

“This might seem counterintuitive to the novice real estate investor, but when we look for places to invest in properties we always begin with the tenant in mind,” said McClelland.” A real estate investment works when you have steady, dependable income. And the best way to get that is by having excellent tenants.”

Read the full article at: The Smart Way to Choose Investment Properties.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report

Posted by Michael Gerrity 01/10/12 10:43 AM EST

Summary:

• U.S. Office Vacancy Rates Drop to 16% in 4Q, 2011.
• Industrial Availability Continues to Decline; Now 13.5%.
• Retail Availability Holds Steady.
• Apartment vacancy Falls Amid Robust Demand.

Key Quotes:
The office market improved steadily throughout 2011, ending the year with a vacancy rate down 50 bps from year end 2010, at 16%.

Industrial availability ended 2011 at 13.5%, a 80 bps decline from prior year end. With most local markets seeing improved availability in Q4, it appears that modest economic growth is continuing to spur demand for industrial space.

At 13.2%, Q4 2011 retail availability - while unchanged from the previous quarter -- was 20 bps higher than the rate at the end of 2010. However, the stabilization of retail availability during the second half of 2011 marked an end to the relentless increases that characterized the retail real estate market since the recent recession.

Q4 2011 results highlight the continued strengthening of apartment fundamentals, fueled by occupancy gains as more former homeowners elect the rental option. The Q4 2011 vacancy rate of 5.3% was a 70 bps drop from Q4 2010. 

Read the full article at Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

For Sale: Fully Leased Apartment Building

101 Woodhouse Lane, Savannah, Ga. 31406

Four 2BR/1BA apartments fully leased with recent upgrades. Each apartment has an eat-in kitchen, washer, dryer, central heat and air.

On a bus line. Sidewalks, street lights, walk to shopping.



Each unit collects $650 a month in rent with a $400 deposit. Rental market is hot! Act quickly! Rent includes maintanence, but not electricity, garbage or water. Cable ready.

Priced to move at $239,900.

Savannah Multi-List MLS #91904

Loopnet Listing ID 17392885

A. Joseph Marshall
Connie Farmer Ray, Broker
Coldwell Banker Commercial
912-352-1222
Commercial Real Estate Advisor

Savannah, Ga 

Strong Demand, Tight Supply Strengthen Case for New Apartment Development

Great article on the need for multifamily housing!
Multifamily housing is hot. And I have two apartment complexes for sale. Time for your money to earn more than 1% sitting in a savings account!


A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.

Just Listed- Two Quadplexes on Semken. Each $237,500!

2528 Semken Ave.

Clean, impressive and under-rented. Fully leased.

• Unit A- Newer carpet, new cabinetry.
• Unit B- Long term tenant has not allowed remodeling. Has newer cabinets, but tenant took the doors off and are in storage. Will eventually be updated.
• Unit C- New carpet. Ceramic tile in kitchen and bath. Newer appliances and cabinetry.
• Unit D- Three year old carpet. New cabinetry and appliances.
• **Back stairs on building replaced within last 2 years. Roof is 8 to 9 years old.

2530 Semken Ave.

A great investment. Owner lives in Unit A and proactively cares for both properties!

• Unit A. New kitchen cabinets, counters, tile in kitchen and bath. Carpet to be replaced within a few weeks.
• Unit B. VCT tile throughout. New kitchen cabinets. Paint less than one year old. New carpet.
• Unit C. New ceramic tile in kitchen and bath. New cabinets and carpet.
• Unit D. Recently installed linoleum vinyl in kitchen and bath that looks like wood (tenant chose the style). New cabinets, counters, carpet.
• **Back stairs on building painted within last two years. Roof is 8-9 years old.

Apartments are conveniently located in between Savannah State University and Bona Bella Marina.

The multi-family housing market is HOT. 5 million new renters to enter the market within the next 4 years. Homeowners that sell are now choosing to rent instead. Read more here!

A. Joseph Marshall

Commercial Real Estate Agent

Coldwell Banker Commercial Platinum Partners
912-352-1222
Connie F. Ray, Broker

Savannah, Ga.

New Census Report Is Good News for Commerical Real Estate

Well the U.S. Census Bureaus’ latest construction spending report sends good news to CRE investors. The news is certainly encouraging to the construction industry, but also to new multi-family housing and commercial REIT investors.

In their latest report, private spending on commercial construction is up 1.2% over last month. As a whole we’re going to focus on that good news and not think about the fact that number also means a 5.1% decrease in spending from May last year.

We all know that multifamily housing is going to be in demand due at least to the fact that over 4.5 million home owners were foreclosed on since the recession began. And the census report shows it- construction for lodging is up 2.8% since last month. This seems to indicate there may not be enough rental units to house everyone in the future. I think we’ve noticed an uptick in apartments locally, like the renovation of the apartment buildings between Abercorn and Habersham near Habersham Village. Dawson Long, owner of The Chelsea at Five Points, also says vacancies are way down.

The slow increase in construction spending hasn’t gone unnoticed by major corporate investors, either. Michael Cembalest, JP Morgan’s CIO of Global Wealth Management, as reported by Business Insider, says that “there’s less new construction to impede a recovery, and prices have been marked down to reflect a new era of cautious underwriting.” And after suffering billions in losses in the CRE market, he’s recommending that people invest in commercial real estate. That goes for REITs as well as physical property. Chaster Johnson, CEO of CharlesFund, says REITs are a very hot topic among his investors. Cembalest sums up the situation: “The new realities of the commercial property markets have finally arrived; while they are painful for existing (pre-crisis) holders, they are more promising for new ones.”

Note: I am not a statistician and these statistics are reported by the Charleston Regional Business Journal.

A. Joseph Marshall
Savannah Commercial Real Estate Agent