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National Commercial Real Estate Markets Improving 2012 Winston Rowe & Associates
On a national basis commercial real estate investment performance continues to display favorable conditions, a result of historically low borrowing rates and a modest inflationary outlook 248-246-2243.
Based on the most recent 2012 CRE market analysis by Winston Rowe & Associates, a no upfront front fee commercial real estate financing firm has found that the national commercial real estate markets are in the early phase of a cyclical recovery for 2012 and 2013.
On a national basis commercial real estate investment performance continues to display favorable conditions, a result of historically low borrowing rates and a modest inflationary outlook. Combined with a very limited new supply and rising demand is buoying real estate fundamentals for many sectors throughout the US economy.
Prospective clients seeking additional information about Winston Rowe & Associates can contact them at 248-246-2243 or go to their web site at http://www.winstonrowe.com
The strongest markets include New York City, San Francisco/San Jose, Seattle, Washington, D.C., Boston and Houston, with value-add and new development emerging as popular strategies in this sector. However, with this rapid increase in new development comes a moderate risk of excessive supply in the next two to three years.
Contrary to many expectations, the office sector has been second place nationally in both absorption and rent growth. Office vacancy declined from 16.5 percent in the fourth quarter of 2010 to 16.0 percent in the fourth quarter 2011, and rents increased by 3.0 percent during 2011.
The industrial sector has shown strong improvement, with six consecutive quarters of positive net absorption (162 million sq. ft.) and vacancy declining from 14.3 percent in the fourth quarter 2010 to 13.6 percent in the fourth quarter of 2011.
Retail absorption nationally turned slightly positive in 2011, marking the first year of positive net absorption since 2007. Despite the positive absorption, vacancy remained unchanged at 11 percent as a result of an equal amount of new deliveries.
Following three years of rent declines, retail effective rents were unchanged in 2011. Retail is a divided sector, despite relatively robust consumer spending over the past six months: Necessity and high-end retailers are doing well, while middle retailers are being squeezed. They do not anticipate any meaningful rent growth until late 2012.
The hotel sector has had continued solid operating performance, with growth in revenue per available room of 7 percent in 2011, enhanced by robust corporate travel. While a vvldt weak economic recovery and high fuel prices remain risks to room demand in 2012, muted supply growth may provide a boost to occupancy.
Winston Rowe & Associates has a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning financial products that best achieve their client’s goals.
Winston Rowe & Associates has an excellent free knowledge based resource for commercial real estate, valuation and market analysis located at:
Winston Rowe & Associates
31408 Harper Ave
Saint Clair Shores MI 48082
Winston Rowe & Associates has no upfront free commercial real estate financing solutions and in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming