America’s warehouse boom, and CRE is on the rise in Phoenix
Oct 17, 2014
Here are the news stories you might have missed this week:
The Post and Courier: Charleston region on cusp of new growth for commercial real estate
Charlotte investors and realtors are moving full steam ahead with an onslaught of new commercial real estate projects. As Charlotte’s population continues to grow and vacancy rates drop across market segments, demand for new construction is at an all-time high. The rising need for real estate is encouraging investors and developers to break ground on new projects, and local experts predict that this trend will continue in the future. To find out more, visit PostAndCourier.com.
CoStar: Spec developers scouring markets for new warehouse sites
The U.S. is in a warehouse drought, but developers are happy to quench America’s thirst. More and more tenants are in need of warehousing space above 500,000 square feet, but there aren’t enough vacant warehouses to satisfy this demand. To help fill this gap, developers and investors are buying up empty land to construct more industrial buildings. The industrial sector continues to see low vacancy rates and rising rents rates, making the warehouse sector a solid investment for developers. Read the whole story about this warehouse boom at CoStar.com.
The Wall Street Journal: For real-estate investors, it’s out with the old
As metropolitan office values continue to climb, a few major real estate players are selling their stakes in legacy buildings and using that money to invest in new developments. Boston Properties Inc. recently sold its share in a prominent New York skyscraper to invest in two Boston buildings that are still under development. While many experts find this a risky play, investors are discovering that new developments have a greater potential for growth. Read more at WSJ.com.
Arizona State University News: Phoenix commercial real estate in recovery
Optimism has returned to Phoenix, as most local real estate brokers agree that the market is regaining momentum. A survey of local brokers by the W. P. Carey School of Business at Arizona State University revealed that homebuilders are buying land, and office and retail vacancy rates are trending downward. All of the brokers polled were optimistic about the future, and 82% expect local land prices to increase in the coming years. Find out more about Phoenix’s growing market at ASUnews.asu.edu.
Author: Raymond T. Cirz