In case you missed it: What’s jumpstarting commercial real estate in 2013?
Jan 11, 2013
News of continued growth in commercial real estate sectors is generating cautious optimism for 2013. In the past week’s news, natural gas drilling and Amazon.com are just two of the factors lending a helping hand. Take a look:
Bloomberg: “Energy Boosts U.S. Office Market as Pittsburgh Rents Jump”
Cities with booming energy production can expect to see rising office leasing demand and higher rents, according to a recent study by Reis Inc. The greater Pittsburgh area is seeing its highest rents in more than a decade, and other cities, such as Houston and San Francisco, are also seeing increases. The trend is also contributing to a three-year low in the national vacancy rate. Jump over to Bloomberg to read more about the energy industry’s positive effect on commercial real estate in 2013.
Philadelphia Business Journal: “Amazon to put huge fulfillment center in Robbinsville, N.J.”
Online retail giant Amazon.com has picked Robbinsville, N.J., as the home of a massive, 1 million-square-foot warehouse. Scheduled to open in 2014, the new warehouse will likely create hundreds of jobs in the area and pour millions into the local economy. Head over to the Philadelphia Business Journal to read more about the project.
The Wall Street Journal: “To Canadian Funds, U.S. Real Estate Looks Ripe”
Our neighbors to the north – Canadian pension funds – have put $9 billion into U.S. commercial real estate over the past three years, and they’re looking to invest even more in the next few months. This reverses a pattern in which these funds stayed away from U.S. properties. Peruse the complete story over at the Wall Street Journal.
The Commercial Observer: “Commercial Real Estate Lending and the State of the Banks”
Financial and real estate economist Sam Chandan authored a column for Commercial Observer that summarized the current lending and financial markets. He believes that our banking system will have the strongest balance sheet position since before the financial crisis. He attributes part of this to a rising demand for loans among qualified borrowers, which has boosted lending, increased net income, and shrunk loss provisions. Read more about the strength of banks in 2013 by clicking over to the Commercial Observer.
What stories drew your attention this week? Let us know in a comment below.
Posted by: Raymond T. Cirz