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Trans-Pacific Shipping Costs, Growing 'Megapolitans' Impacting U.S. Industrial Markets

East Coast vs. West Coast Ports, the ever-evolving global supply chain is prompting distribution companies that process freight shipments between the U.S. and Asia to optimize their U.S. industrial real estate portfolios to increase efficiencies and cost savings. Read More »

Luxury Property Spotlight

Grand Tetons Wonderland - (Driggs, Idaho)

Huntsman Springs is golf and club community developed by Jon Huntsman, Sr. A place of serenity and beauty in the hitherto undeveloped Teton Valley of Western Idaho. Read More »

Regional Real Estate News

Last Updated August 1, 2014 9:57 AM ET
North America

East Coast vs. West Coast Ports, the ever-evolving global supply chain is prompting distribution companies that process freight shipments between the U.S. and Asia to optimize their U.S. industrial real estate portfolios to increase efficiencies and cost savings.

Miami luxury developer Château Group and FENDI, the Italian luxury house, have created a partnership to develop FENDI Château Residences, a new and exclusive 12-story waterfront condominium building located in Miami.

Second quarter 2014 commercial and multifamily mortgage loan originations were two percent lower than during the same period last year

According to CoreLogic's June 2014 National Foreclosure Report, there were 49,000 completed foreclosures nationally, down from 54,000 in June 2013.

According to the latest S&P/Case-Shiller Home Price Indices for May 2014, the Composite Indices increased at a slower pace.

According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 25, 2014, mortgage applications decreased 2.2 percent from one week earlier.

A survey of the nation's leading construction forecasters is projecting that spending will see a 4.9% increase in 2014 - down from the previous estimate of 5.8%, with next year's projection holding at 8%.

According to STR, the U.S. hotel industry reported increases in all three key performance metrics for the second quarter 2014 in year-over-year measurements.

Last Updated July 16, 2014 8:00 AM ET
Latin America

According to the June 2014 STR Global Construction Pipeline Report, the Central and South America hotel development pipeline comprises 400 hotels totaling 65,479 rooms.

STR Global is reporting hotels in Brazil have experienced declines in revenue per available room as they prepared to host the FIFA World Cup, which began this week.

The real estate market in Costa Rica is displaying signs of significant interest towards pre-built construction of coastal gated communities while pressure rises from competing markets such as Panama.

The Costa Rica real estate market saw a significant turn-around in 2013 after setting a record in international arrivals in 2012 with over two million landing on its sunny shores.

STR Global reported this week that hotels across the Americas region recorded positive results in the three key performance metrics.

Central and South America's hotel development pipeline comprised of 390 hotels totaling 63,780 rooms.

There is a strong increase of new hotel development now occurring in both the Caribbean and Mexico over last year's construction activity.

Puerto Rico's commercial real estate market continues to go through a bumpy recovery in 2014.

Last Updated July 28, 2014 10:45 AM ET
Europe

Retail real estate investment in Europe enjoyed a strong quarter as the Q2 volume reached €9.6bn, up 86% from the Q2 2013 volume of €5.2bn.

'Alternative' non-bank financial institutions continue to take up a more significant share of an increasingly diversified mix of active lenders in Europe.

According to Cushman & Wakefield's Corporate Finance team, European banks and asset management agencies have a gross exposure of €584 billion to non-core real estate which is subject to disposal or work-out strategies.

According to CBRE, the first half year results pushed commercial real estate investment volumes in Central & Eastern Europe (CEE) (excluding Russia) to €2.5bn, an increase of 15% on the same period for 2013.

£3.38 billion worth of central London commercial property transactions took place in Q2 2014; this takes total H1 London investment to £7.6 billion.

The average London home price is now double the UK average for the first time in a 41-year period, says global real estate consultant Cushman & Wakefield.

London's West End remained the world's highest-priced office market, but Asia continued to dominate the world's most expensive office locations.

Student housing was one of the best performing sectors during the global economic downturn.

Last Updated July 24, 2014 12:57 PM ET
Middle East and Africa

Bahrain's retail market has remained the best performing sector in the commercial market, with developers capitalizing on the buoyant demand for retail schemes in Manama.

Real estate risk to both assets and employees is on the rise in several emerging-market economies.

Vertical communities are moving ever higher as a new generation of high-rise buildings concentrated mainly in China, the Middle East and South East Asia show developers competing to build to record heights.

This week UAE's Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum announced Dubai's newest mega-project, the Mall of the World, located along Sheikh Zayed Road in Dubai.

Where transparency broadens, real estate capital flows and market change follows. JLL now reports this trend has finally made its way to one of the "final frontiers" of commercial real estate:

According to the latest research from global property advisor CBRE Group, Inc., Middle Eastern investors are expected to spend US$180 billion in commercial real estate markets outside of their own region over the next decade.

International real estate consulting firm Cluttons reports there is an increased demand in both the residential sales and lettings markets across Muscat that is being underpinned by an increased level of job creation.

According to STR Global's preliminary May 2014 data for the Dubai hotel industry, the market enjoyed positive revenue-per-available-room performance.

Last Updated July 15, 2014 10:40 AM ET
Asia Pacific

According to the June 2014 STR Global Construction Pipeline Report, the Asia Pacific region reported 2,313 hotels under contract comprising 519,718 rooms.

According to STR Global's preliminary June 2014 hotel data for Singapore, there was negative performance in the three key market performance measurements.

According to global real estate consultant CBRE, the increasing liberalization of regulatory restrictions on Asian insurance funds could lead to an additional US$75 billion entering global real estate markets by 2018, with New York and London among the key targets.

According to STR Global, hotels in the Asia Pacific region experienced positive results during May 2014.

According to STR Global's preliminary hotel data, Sydney's hotel sector enjoyed several positive performance trends for May 2014.

A company in India is building residential property developments with a focus on nurturing children's abilities and talents, offering special facilities and celebrity-coaching on site in activities ranging from tennis to personality and leadership skills.

GIC, a Singapore-based sovereign wealth fund, is now planning to sell the Great White Course, one of five championship golf courses in Doral, located adjacent to the Trump National Doral Resort and Spa in Miami.

After years of decline, the South Korean housing market appears to have turned around.

Real Estate Dashboard
U.S. Housing Stats Feb. 2014 Jan. 2014
Existing Home Sales (Annualized Rate) 4.60m 4.62m
Existing Home Prices (Median) $189,000 $188,900
Existing Home Inventory (all U.S.) 2.0m 1.9m
Existing Home Supply (Months) 5.2 4.4
New Home Sales (Annualized Rate) 444,000 468,000
New Home Prices (Median) $261,800 $260,100
New Home Inventory (all U.S.) 189,000 184,000
New Home Supply (Months) 5.2 4.7
Building Permits (Single Family) 588,000 599,000
Housing Starts (Single Family) 583,000 581,000
Housing Completions (Single Family) 631,000 607,000
Pending Home Sales Index (PHSI) 93.9 95.0
Home Builder Confidence Index (HMI) 46 56

Source: NAR & U.S. Commerce Department

U.S. Foreclosure Stats Feb. 2013 Jan. 2014
Residential Filings 112,498 124,419
Year Over Year % Change 10.0% 18.0%

Source: RealtyTrac

Global House Price Index (Q4, 2013)

Country Annual Price Change Quarterly Change
1. Dubai 34.8% NA
2. China 27.5% 5.0%
3. Taiwan 15.1% 2.0%
4. Estonia 14.5% 6.0%
5. Turkey 13.8% 2.9%
6. Brazil 12.7% 3.5%
7. Indonesia 11.5% 1.8%
8. Colombia 11.5% 1.9%
9. United States 11.3% -0.3%
10. Poland 10.2% 6.4%
11. Malaysia 10.1% 1.3%
12. Kazakhstan 9.4% 3.3%
13. Australia 9.3% 3.4%
14. New Zealand 9.2% 1.8%
15. Iceland 8.7% 3.2%
16. Israel 8.6% 0.7%
17. Hong Kong 7.7% -0.2%
18. Unted Kingdom 7.0% 2.7%
19. Ireland 6.4% 2.6%
20. Luxembourg 5.5% 0.4%
21. Switzerland 4.6% 1.2%
22. Russia 4.2% 0.5%
23. Austria 4.1% -0.5%
24. Sweden 4.1% 1.1%
25. Mexico 4.1% 0.1%
26. Canada 3.8% 0.1%
27. India 3.4% 2.4%
28. Latvia 3.0% 1.2%
29. South Africa 2.8% 1.4%

Source: Knight Frank

U.S. Office Market Current Qtr.
(Q1 - 14)
Prior Qtr.
(Q4 - 13)
Inventory
(sf in 1000s)
3,622,479
3,618,503
Completions
(sf in 1000s)
3,976
8,879
Absorption
(sf in 1000s)
5,453
14,527
Vacancy Rate
14.8%
14.9%
Gross Asking Rent
($ per sf)
27.83
27.40

Source: CBRE Econometric Advisors

U.S. Industrial Market Current Qtr.
(Q1 - 14)
Prior Qtr.
(Q4 - 13)
Inventory
(sf in 1000s)
12,786,149
12,761,402
Completions
(sf in 1000s)
24,747
27,604
Absorption
(sf in 1000s)
44,805
72,674
Vacancy Rate
11.1%
11.3%
Net Asking Rent
($ per sf)
5.85
5.74

Source: CBRE Econometric Advisors

U.S. Retail Market Current Qtr.
(Q1 - 14)
Prior Qtr.
(Q4 - 13)
Inventory
(sf in 1000s)
2,915,392
2,913,198
Completions
(sf in 1000s)
2,194
3,220
Absorption
(sf in 1000s)
4,477
9,696
Vacancy Rate
11.9%
12.0%
Net Asking Rent
($ per sf)
18.62
18.59

Source: CBRE Econometric Advisors

U.S. Multifamily Market Current Qtr.
(Q1 - 14)
Prior Qtr.
(Q4 - 13)
Rentable Inventory
(units)
14,846,049
14,787,950
Rentable Completions
(units)
58,099
60,793
Absorption
(units)
59,965
13,191
Vacancy Rate
4.9%
4.9%
Same-Store Rent
Index ($/unit)
$1,360.03
$1,349.35

Source: CBRE Econometric Advisors

U.S. Hotels
(May. 2014)
Occupany Rates Avg. Daily Rates (USD)
Luxury   78.0%
$300.21     
Upper Upscale   76.5%
$171.70     
Upscale   76.7%
$128.82     
Upper Midscale   69.6%
$105.52     
Midscale   61.1%
$80.07     
Economy   60.0%
$57.15     
Independents   62.7%
$111.95     
TOTAL U.S.   67.0%
$115.35     

Source: STR

International Hotels  (By Region, May. 2014) Occupany Rates Avg. Daily Rates (USD)
Americas   66.9%
$116.90     
Asia/Pacific   67.6%
$115.10     
Europe   74.0%
$148.89     
Middle East/Africa   63.5%
$154.14     

Source: STR Global

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