HIGH TIDE FOR HOTEL REVENUES
The greatest improvement in the hotel market is occurring along the coasts of the U.S. Revenue per available room (RevPar) for hotels in the major markets of the New England/Mid-Atlantic and Mountain/Pacific region grew in excess of 8% in the first quarter of 2004. The majority of this growth in revenue can be attributed to increases in occupancy, according to the Hospitality Research Group of PKF Consulting.
|New England/Mid-Atlantic Cities||66.3%||65.7%||69.2%|
|North Central Cities||58.5%||58.4%||60.8%|
|South Atlantic Cities||61.2%||61.9%||66.0%|
|South Central Cities||58.7%||58.0%||60.5%|
|Source: Smith Travel Research, Torto Wheaton Research, The Hospitality Research Group of PKF Consulting|
RETAIL INVESTORS DEVELOP A TASTE FOR FAST FOOD
Infill redevelopment accounts for a large portion of recent retail expansion, while suburban sprawl continues, as peripheral areas fill up with big boxes, fast food and drugstores. The volume of single-tenant sales transactions increased by 15% overall in the past year, with similar activity anticipated over the next 12 months, according to Marcus & Millichap.
LOW-COST CAPITAL DRIVES INDUSTRIAL
Over the past few years, many sellers have been able to achieve aggressive prices for their properties due to the availability of capital. In the first half of 2004, the median sales price rose by 4.5% to $57.50 per sq. ft., even though asking rents remained flat at $5.15 per sq. ft.
MULTIFAMILY REITS LOSE GROUND
As a whole, apartment REITs continued to underperform the broader equity REIT market during July. Most analysts believe the multifamily sector will not fully rebound until interest rates — and mortgage rates — rise, slowing the exit of renters to the single-family home market.
BRAIN GAINS, BRAIN DRAINS
Competition among U.S. cities for smart migrants — recent college graduates, mid-career workers or retirees — creates winners and losers. Fast-growing, suburbanizing Sun Belt hot spots such as Atlanta and Phoenix are making strides bringing the South and West into knowledge-worker parity with more traditional brainiac centers on the urbanized coasts. While well-heeled knowledge workers can still afford to live in San Francisco, New York and Los Angeles, the allure of more affordable, new and family friendly growth centers in the Sun Belt appears to be turning the tide southward and inward.
|1. Atlanta, Ga.||76,443|
|2. Phoenix-Mesa, Ariz.||63,084|
|3. Dallas-Fort Worth, Texas||54,814|
|4. San Francisco-Oakland-San Jose, Calif.||48,614|
|5. Denver-Boulder-Greeley, Colo.||40,973|
|1. New York-Northern New Jersey-Long Island-Conn.-Pa.||-122,000|
|3. Pittsburgh, Pa.||-30,065|
|4. Detroit-Ann Arbor-Flint, Mich.||-17,244|
|5. Buffalo-Niagara Falls, N.Y.||-17,171|
|Source: William H. Frey analysis of Census data|