INVESTORS STORE CAPITAL IN SELF-STORAGE SECTOR
Strong population growth and positive economic conditions in the West have investors scouring the region for opportunities in the self-storage sector. In 2003, investors committed approximately 70% of total capital allocated to self-storage to the West.
APARTMENT DEVELOPERS ON A BUILDING BINGE
Construction of new units has been aggressive in some multifamily markets in early 2004. Washington, D.C., leads the nation with 15,704 units under construction.
Top Apartment Construction Markets
| Metro | Units Under Construction |
|---|---|
| Washington, D.C. | 15,704 |
| Houston | 15,036 |
| South Florida | 14,458 |
| Dallas/Fort Worth | 12,119 |
| Los Angeles | 10,101 |
| Source: M/PF Research | |
NET-LEASE MARKET CONTINUES TO MUSHROOM
The number of available net-lease properties increased 8.3% between the fourth quarter of 2003 and the first quarter of 2004, as sellers entered the market to take advantage of the low cap-rate environment, reports The Boulder Group. A total of 3,462 net-lease properties — with a combined value of more than $11.5 billion — were available nationwide in the first quarter, up from 3,175 and a value of $11.2 billion.
INVESTMENT TRUMPS DEVELOPMENT
Commercial real estate experts favor investment over new development in all property types, according to a survey of senior-level executives conducted by the National Association of Industrial and Office Properties (NAIOP) and compiled by CB Richard Ellis Investors. Respondents to the survey, conducted in early 2004, expressed a growing interest in the development of warehouse/distribution space and biotech/life science facilities.
ON THE ROAD AGAIN
In the United States, tourism is currently the third-largest retail industry, behind automotive and food stores. Travel and tourism is the nation's largest services export industry. In 2002, the lodging industry grossed $142 billion in pretax profits, according to Smith Travel Research.
| Typical Business Traveler | 1999 | 2001 | 2002* | |
|---|---|---|---|---|
| Male | 60% | 70% | 71% | |
| Age 35-54 | 52% | 53% | 54% | |
| Average Annual Income | $72,240 | $76,394 | $81,600 | |
| Travels Alone | 81% | 62% | 61% | |
| Makes Reservations | 91% | 92% | 91% | |
| Average Price of Room | $91 | $95 | $93 | |
| Length of Stay | ||||
| One Night | 36% | 42% | 42% | |
| Two Nights | 25% | 25% | 25% | |
| Three or More Nights | 39% | 33% | 33% | |
| Typical Leisure Traveler | ||||
| Two Adults | 50% | 51% | 52% | |
| Age 35-54 | 42% | 46% | 43% | |
| Average Annual Income | $64,386 | $69,147 | $71,600 | |
| Travels By Car | 75% | 74% | 74% | |
| Makes Reservations | 83% | 83% | 83% | |
| Average Price of Room | $84 | $87 | $85 | |
| Length of Stay | ||||
| One Night | 43% | 47% | 46% | |
| Two Nights | 28% | 27% | 27% | |
| Three or More Nights | 29% | 26% | 27% | |
| *Most recent data available | ||||
| Source: American Hotel & Lodging Association | ||||
