CMBS OFF RECORD PACE

The $97 billion in commercial mortgage-backed securities issued in 2001 broke the previous record of $78.4 billion in 1998. Lend Lease Real Estate Investments Inc. predicts that CMBS issuance will decline to about $79 billion this year due to credit-quality concerns, rising delinquency rates and a decrease in the number of securitization deals being brought to the market.

Source: Commercial Mortgage Alert, Lend Lease Real Estate Investments

OFFICE ACQUISITIONS LAG

Office acquisition volume declined 31% in 2001 from the decade peak in 1998, primarily as a result of a bid-ask price gap. Acquisitions in the first half of 2002 totalled a mere $5 billion.

Jack Minter, managing director at Credit Suisse First Boston, predicts volume will continue to drag through year-end.

*Deals include Class-A and Class B buildings over 100,000 sq. ft.

Source: Lend Lease Real Estate Investments/Jones Lang LaSalle and CS First Boston

TOP TEN INDUSTRIAL GIANTS

The total inventory for the U.S. industrial market is 11.2 billion sq. ft., with the metropolitan Los Angeles market leading the way, according to the Society of Industrial and Office Realtors. To put into context just how large these top markets are, SIOR reports that the average industrial market size is 90.7 million sq. ft. Included in the totals are warehouse and distribution space, light and heavy manufacturing space, and flex space.

Largest Markets Size (in millions of sq. ft.) Vacancy Rate
1. Los Angeles 991 4.90%
2. Chicago 976 11.5%
3. New York/Northern N.J. 712 9.80%
4. Dallas 485 11.1%
5. Atlanta 410 13.0%
6. Central New Jersey 331 7.10%
7. Cleveland 315 9.40%
8. Minneapolis 295 6.50%
9. Detroit 265 12.6%
10. Houston 259 9.20%
Source: Society of Industrial and Office Realtors, CoStar Group Inc., CB Richard Ellis, Cushman & Wakefield


REELING RETAILERS

During the boom economy, retail bankruptcies dropped to a low of 13 in 1998 as consumer spending kept many retailers afloat. But the number of bankruptcies shot up to 31 in 1999 as the market became more crowded and weaker retailers were edged out of business. Bankruptcy rates are expected to remain at comparable levels in 2002 as retailers continue consolidating and closing unprofitable stores.

*Retailers include national and regional chains.

Source: International Council of Shopping Centers/Credit Suisse First Boston

TOP U.S. CONVENTION SITES:

Conventions are a boon to the entire hospitality business. In major convention markets, the spectrum of a city's hospitality community — including hotels, restaurants, theme parks and sporting events — benefits from visitor spending.

City Shows
1. Las Vegas 40
2. Chicago 22
3. New Orleans 15
3. New York City 15
3. Orlando, Fla. 15
6. Atlanta 13
7. Anaheim, Calif. 9
8. Dallas 8
9. San Francisco 7
10. Los Angeles 6
11. Indianapolis 5
11. Miami Beach 5
13. Louisville, Ky. 4
13. Rosemont, Ill. 4
15. Philadelphia 3
15. Salt Lake City 3
15. San Diego 3
18. Houston 2
Ranking is based on the number of annual trade shows with a minimum of 142,500 sq. ft. of convention space held in each U.S. city in 2001. Shows include all industries.
Source: Tradeshow Week's Trade Show 200, 28th Annual Edition, April 2002