INDUSTRIAL PERFORMANCE REMAINS SPOTTY
Chicago, Los Angeles and Northern New Jersey lead the pack when it comes to industrial absorption as of mid-year 2003. On the flip side, Atlanta, Detroit and Houston are experiencing negative absorption.
| YTD Absorption | YTD Deliveries | Under Construction | |
|---|---|---|---|
| Los Angeles | 4.9 million | 1.2 million | 8.5 million |
| Chicago | 3.5 million | 4.9 million | 7 million |
| Northern New Jersey | 3.2 million | 1.2 million | 2.4 million |
| Houston | (2.3 million) | 1.6 million | 1 million |
| Atlanta | (2.7 million) | 1.7 million | 1.9 million |
| Detroit | (5.7 million) | 745,050 | 1.5 million |
| Source: CoStar Group Inc. | |||
FAST-FOOD SITES GARNER TOP DOLLAR
At $380 per sq. ft., retail sites occupied by fast-food tenants garnered the highest price per sq. ft. from buyers in the first half of 2003. Sites occupied by drugstore tenants came in a distant second at $282 per sq. ft.
READY FOR REHABILITATION
Overall, 42% of several hundred respondents to a survey conducted by NREI and Marcus & Millichap this spring indicate they have plans to redevelop, renovate or expand properties they are currently invested in. Additionally, 44% of respondents to the survey plan to invest in or acquire properties specifically for renovation, redevelopment or expansion.
OFFICE ASKING RENTS CONTINUE TO FALL
Compared with the second quarter of 2002, average asking rents in most major markets fell, with the exception of Chicago and South Florida. New York and San Francisco recorded the biggest declines as those markets continued to see a reversal of the sharp increases of a few years ago.
RENT CHECK
Americans are paying more in rent than ever before. According to the U.S. Census Bureau, the median monthly rent bill in the United States increased to $602 in 2000 from $571 in 1990.
| Highest Median Monthly Rent | |
|---|---|
| Irvine, Calif. | $1,272 |
| Sunnyvale, Calif. | $1,270 |
| Santa Clara, Calif. | $1,238 |
| Fremont, Calif. | $1,196 |
| Thousand Oaks, Calif. | $1,131 |
| Lowest Median Monthly Rent | |
| Brownsville, Texas | $405 |
| Erie, Pa. | $424 |
| St. Louis, Mo. | $424 |
| Louisville, Ky. | $442 |
| Cincinnati, Ohio | $444 |
| Source: U.S. Census Bureau | |