The office sector has been patiently waiting for good news since the end of the recession, McCarthy says. However, expansions and new office leases have been slow to materialize as business executives exercised caution.
According to a recent Prologis Inc. white paper, “The Growth of Logistics Real Estate,” global net absorption this past year reached 350 million sq. ft., the highest level since the beginning of the global financial crisis, and activity continues to look good this year.
Medical office buildings (MOBs) are starting to overtake hospitals as the preferred new property type for health care systems, but real estate market statistics for MOBs are still lumped into the broader health care category, making data and trends hard to obtain.
The average occupancy rate for seniors housing properties edged closer to 90 percent in the first quarter, as the industry’s property types gained absorption due to slow construction and increasing demand.
Detroit, with about 365 million sq. ft. of industrial space, tied with Atlanta in recording an 80 basis points drop in availability in the first quarter, according to a report by commercial real estate services firm CBRE.
About 70 percent of U.S. office markets reported occupancy gains during the first quarter, according to commercial real estate services firm Cassidy Turley. The markets absorbed 12 million sq. ft. collectively from January through March 2014.
How big is too big? That’s the question regarding the mega-merger deal of Brookdale Senior Living’s $2.8 billion purchase of Emeritus Corp.—a deal that will result in a firm spread out over 1,161 properties in 46 states.
The middle-income seniors population, which has grown during the recession and will continue to increase as the baby boomers age, may have a difficult time finding appropriate long-term-care facilities, as the seniors housing industry typically builds only affordable properties for the indigent or luxury housing for the affluent.
A lack of development since the start of the recession, along with exploding demand in both traditional primary markets and those led by energy and technology booms, have pushed demand for class-A space through the roof.
New logistics models are springing up to grab the same-day delivery market share, ranging from mega-distribution centers totaling 1.5 million sq. ft. to tiny delivery posts in urban areas that compete with the struggling local connections.