STABILIZING MANHATTAN OFFICE MARKET
For the first time in months, the rate of decline has begun to level off in Manhattan, according to first-quarter 2003 numbers from Cushman & Wakefield. The trend is attributed to several factors: the fact that space in many buildings is being offered at attractive prices and business incentives available to tenants who locate Downtown.
|Manhattan Overall||1Q 2003||4Q 2002||1Q 2002|
|Downtown Manhattan||1Q 2003||4Q 2002||1Q 2002|
|Midtown South||1Q 2003||4Q 2002||1Q 2002|
|Midtown Manhattan||1Q 2003||4Q 2002||1Q 2002|
|Source: Cushman & Wakefield|
THE BIG 3 IN MULTIFAMILY REITS
More than half of the equity market cap of the publicly traded multifamily REITs is made up by the top three companies: Equity Residential (24.70%), Archstone-Smith (15.09%) and Apartment Investment & Management Co. (12.97%).
|Rank||Company||Ticker Symbol||Billions of Dollars||Percent of Subsector|
|1||Equity Residential Properties Trust||EQR||$6.52||24.70%|
|3||Apartment Investment & Management Co.||AIV||$3.42||12.97%|
|4||AvalonBay Communities Inc.||AVB||$2.51||9.53%|
|5||United Dominion Realty Trust Inc.||UDR||$1.71||6.49%|
|Source: National Association of Real Estate Investment Trusts|
TOP INDUSTRIAL INVESTMENT MARKETS
Jacksonville and Houston are two of the best places to buy industrial properties in the country, offering median yields of 10.95% and 10.6% respectively, according to real estate brokerage Sperry Van Ness. The study is based on the transaction yields of multi-million dollar sales on an all-cash basis and the price per foot paid for buildings in 2002.
|Rank||Region||Yield||Price per sq. ft.|
|4||Colorado Springs, Colo.||10.32%||$41.35|
|Source: Sperry Van Ness|
NO BARGAIN FOR HOTEL FRANCHISEES
It's getting more expensive to own an economy-level hotel franchise. Research by HVS International reveals that the average franchise fee — measured as a percentage of room revenue — for economy brands (Days Inn, EconoLodge and Super 8) is now equal to that of mid-market brands (Best Western, Holiday Inn, Ramada). More than a decade ago, franchise fees for economy brands measured only 5.2% of room revenue, compared with mid-market fees of 5.7% and first-class fees of 9.6%.
Of the 105 million households in America, 36 million — or 34% — live in rented quarters, according to the 2000 Census. The average monthly rent for rented digs is $612.
|Less than $200||4%|
|$1,500 or more||3%|
|Source: U.S. Census Bureau|