The National Association of Realtors® (NAR) Commercial Real Estate Outlook for the first quarter of 2016 focuses on market performance large and small commercial property sectors. The report provides an overall view of economic indicators, investment sales of commercial real estate, and commercial property leasing fundamentals. Some highlights of this quarters reports include: Rising employment levels […]
In a prior post, I discussed the potential effects on values as interest rates change, assuming capitalization rates changing in tandem at some ratio. Capitalization rates, however, are not the entire story, not at all. In particular, given that net operating income (NOI) is the numerator in the NOI/price cap rate calculation, as NOI changes, […]
Larry Callahan and Peter Anderson join host Michael Bull to discuss how the industrial market and Pattillo Industrial performed in 2015, what types of industries and users are most active right now and what tends to be important to tenants today. South Florida investors may also wish to view our industrial property sales and leasing […]
The capitalization rate (cap rate) for mid-market retail properties in Miami-Dade County (5,000 to 15,000 square feet) drifted to under 4% in the most recent period reported by Costar. As can be seen in the attached chart, cap rates have been relatively consistent over the years, generally moving up and down around a 6.5% or so midpoint. […]
As can be seen in the accompanying chart (Commercial Real Estate Loans, All Commercial Banks June 1, 2004 to November 1, 2015), the total of commercial real estate loans for all commercial banks has hit a new high for the periods available at the Federal Reserve Bank economic research pages.
Jim Schroder of Tribridge Residential joins host Michael Bull to discuss new trends for multifamily properties.
The Federal Reserve’s Real Estate Analyst Brian Bailey joins host Michael Bull to disucss the real estate industries impact on U.S. GDP and economy.
Within the commercial real estate industry, it is generally accepted that higher interest rates lead to higher cap rates and thus lower values, and vice versa. The data on this suggests that the relationship is looser than frequently perceived. On average, there does appear to be some correlation, with more considered analyses suggesting a 30% […]
The capitalization rate (cap rate) for mid-market multifamily properties in Miami-Dade County (20 to 80 units, 1,448 properties) drifted to just under 7% in the most recent period reported by Costar. As can be seen in the attached chart, cap rates have been relatively consistent over the years, generally moving up and down around a […]
The Miami Downtown Development Authority has published a January 2016 Study of Retail Market Conditions. Highlights include: About 1.425 million square feet of retail are planned or under construction, most within Brickell City Centre. Downtown Miami contains about 6.5 million square feet of retail, with rents varying widely from the high teens to more than […]
The capitalization rate (cap rate) for retail properties in Miami-Dade County that are 5,000 square feet or larger (4,855 properties), as reported by Costar, remained under 6% in the most recent period, as can be seen in the accompanying chart. This represents a significant decline from five years prior, when cap rates for such retail […]
The National Association of REALTORS (NAR) together with Deloitte and Situs RERC will once soon release an annual commercial real estate market outlook for the year. The report, Expectations And Market Realities 2016, will assemble a wealth of research and data from a large set of data providers, respondents to surveys, economists, analysts, reviewers, business associates and colleagues. Related […]
The unemployment rate in Miami-Dade County As can be appreciated in the accompanying chart (Unemployment Rate in Miami-Dade County, FL November 1, 2005 to November 1, 2015), this rate has not been significantly lower since 2008, and is about half the peak level reached around 2010. This low unemployment level bodes well for commercial real […]
The U.S. Treasury yield curve has shifted up slightly in the past year, as can be seen in the accompanying chart. Rates, albeit still low, are about 25 to 50 basis points higher at every maturity versus their level about a year ago. The consensus among prognosticators of late has been that rates will edge […]
In the twelve months ending December 31, 2015, Keyes Commercial Realty dominated the Miami MLS market share rankings by number of sales transactions of commercial improved properties within Miami-Dade County. The firm’s impressive 30.1% market share among the top 10 brokers of such properties was more than 2 1/2 times that of its nearest competitor and greater than the […]
Ryan Severino joins host Michael Bull to discuss the status of the industrial market, including current trends in the sector.
