Medical office investors today have to be thankful they’re already in the game—vacancy in the sector is down, investment sales are at their highest and new construction is still falling behind current demand.
Office building owners know it’s almost impossible to measure the success of adding sustainable features, as most tenants don’t make their leasing decisions solely on the basis of water or electricity savings.
The U.S. industrial markets have been chugging along with record-low vacancies, and the outlook appeared smooth for 2015—until a labor dispute slowed to a crawl work at 30 ports along the West Coast this past week.
The technology industry, which led the U.S. office sector recovery since the recession with growth of more than 5 percent a year, is now encouraging owners of warehouses and manufacturing sites in high-demand areas to sell their properties for high-profit conversions.
Optimism prevails in the hospitality sector for 2015, as experts say all product types are showing improving fundamentals, from posh New York City properties to beach resorts, and even select-service assets in tertiary cities.
For the national industrial market, 2014 brought with it the welcome return of speculative development. Going forward, experts say continued demand, and the lowest vacancy rate since the turn of the century, at 7.2 percent, will keep construction cranes busy.
As 2015 approaches, seniors housing joins most commercial real estate sectors in celebrating a slow-but-successful turnaround. To kick off the New Year, a number of industry experts have revealed their predictions, which include increased construction, continued responsible lending and skilled nursing strategies.