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
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|
|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*|
|Average Annual Income||$72,240||$76,394||$81,600|
|Average Price of Room||$91||$95||$93|
|Length of Stay|
|Three or More Nights||39%||33%||33%|
|Typical Leisure Traveler|
|Average Annual Income||$64,386||$69,147||$71,600|
|Travels By Car||75%||74%||74%|
|Average Price of Room||$84||$87||$85|
|Length of Stay|
|Three or More Nights||29%||26%||27%|
|Source: American Hotel & Lodging Association|