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.
Professional services that have traditionally led demand for office space, including finance, insurance and real estate, have finally made a comeback after a slump following the recession. Office market experts hope that the sectors, collectively referred to as FIRE, will now join with the tech and energy industries to heat up office demand in primary cities in 2015.
The recent $8 billion sale of IndCor Properties, an industrial REIT owned by the Blackstone Group, marks one of the largest portfolio purchases since the recession, but it comes as no surprise to capital markets experts, who say smart companies loaded up on lower-priced assets and then waited for an economic comeback.
Annapolis, Maryland-based Revista unveiled its new database on just about every medical office building (MOB) in the country, as well as construction data on the sector. Also, the Washington, D.C.-based Advisory Board Co. detailed how the design of the new MOB buildings should focus on patient convenience.
Office landlords have started to shift back into the driver’s seat across the world, according to a recent Cushman & Wakefield study. Though some political instability and pockets of overbuilding keep expectations from soaring too high, the general consensus is that most markets will gain rents and occupancy by 2016.