A LITTLE LESS ROOM AT THE INN

After declining for two straight years, hotel occupancy levels are expected to increase from 59.3% in 2002 to 60.0% in 2003. The trend is expected to continue in 2004, with a projected increase of 1.4% to 61.4%.

WHERE RENTERS REIGN

Demand for apartments is expected to increase as the number of people ages 20 to 29 grows by nearly 600,000 annually over the next four years. That means more renters will be competing for apartments in New York, where nearly 70% of the metro area's 8 million residents are renters.

Renters vs. Owners in Large Cities
Metro Area Total Population Total Occupied Housing Units Percentage of Renters
1. New York 8,008,278 3,021,588 69.8%
2. Los Angeles 3,694,820 1,275,412 61.4%
3. Dallas 1,188,580 451,833 56.8%
4. Chicago 2,896,016 1,275,412 56.2%
5. Houston 1,953,631 717,945 54.2%
6. San Diego 1,223,400 450,691 50.5%
7. Detroit 951,270 336,428 45.1%
8. San Antonio 1,144,646 405,474 41.9%
9. Philadelphia 1,517,550 590,071 40.7%
10. Phoenix 1,321,045 465,834 39.3%
Source: NMHC/U.S. Census Bureau, Census 2000


CMBS ISSUANCE DIPS

Total issuance in the domestic commercial mortgage-backed securities (CMBS) market dropped 11% in 2002 as a weak economy slowed lending activity. Still, the $66.4 billion in new issuance in the U.S. was the second highest total in four years.

Summary of CMBS Issuance (Dollar figures in billions)
Year U.S. Global Total
2002 $66.4 $95
2001 $74.4 $97.1
2000 $48.9 $61
1999 $58.5 $67.9
1998 $77.7 $78.3
1997 $40.5 $44
1996 $28.8 $29.7
1995 $17.8 $18.9
Source: Commercial Mortgage Alert


Insight from: AMERICAN demographics

ONLINE SPENDING ON THE RISE

Retailers take note: More customers are turning to the Internet. Online sales jumped from $8.2 billion in the third quarter of 2001 to $11.1 billion in the same quarter of 2002, a 34% increase.

Estimated Quarterly U.S. Retail E-commerce Sales
Year E-commerce sales in millions of dollars*
4Q 1999 $5,481
1Q 2000 5,814
2Q 2000 6,346
3Q 2000 7,266
4Q 2000 9,459
1Q 2001 8,256
2Q 2001 8,246
3Q 2001 8,236
4Q 2001 11,178
1Q 2002 9,880
2Q 2002 10,265
3Q 2002 11,061
*E-commerce sales are sales of goods and services where an order is placed by the buyer and terms of sale are negotiated over the Internet, extranet, Electronic Data Interchange network, electronic mail or other online system. Payment may or may not be made online.
Source: U.S. Department of Commerce