DOMINATING THE INDUSTRIAL REITS
The two largest publicly traded industrial REITs, ProLogis and AMB Property Corp., account for nearly two-thirds of the sector's total equity market cap.
| Rank | Company | Ticker Symbol | Market Capitalization Billions of Dollars | Percent of Subsector |
|---|---|---|---|---|
| 1 | ProLogis Trust | PLD | $4.9 | 45.1% |
| 2 | AMB Property Corp. | AMB | $2.3 | 20.8% |
| 3 | CenterPoint Properties Trust | CNT | $1.5 | 13.5% |
| Source: National Association of Real Estate Investment Trusts | ||||
PREMIER RETAIL SPACE REQUIRES A PRETTY PENNY
Prime urban retail space doesn't come cheap. Rents at a stylish address at Fifth Avenue in New York City, for example, will cost retailers a sky-high $530 per sq. ft. as of summer 2003. On the West Coast, a location on Rodeo Drive in Los Angeles is nearly half that at $264 per sq. ft.
MIXED-USE RENTS IN A HOLDING PATTERN
Rents for mixed-use properties aren't expected to change much in the coming year, according to several hundred investors who responded to a survey conducted by NREI and Marcus & Millichap this spring. Fifty-six percent predict that rents will remain the same over the next year.
OFFICE SUBLEASE SPACE SHRINKS
The amount of available sublease space fell in several markets in the second quarter, reflecting a slow improvement in the sublease space overhang. In New York, for example, sublease space availability has dropped nearly 3 million sq. ft. — from 20 million sq. ft. to 17.3 million sq. ft. — over the past three quarters.
THE EXOTIC TRAVEL BOOM
Finally, some good news for the embattled hotel sector. The projected growth of the 55- to 74-year-old age segment, a group that tends to indulge in exotic vacations more than any other, is expected to fuel a travel boom over the next decade. According to the Bureau of Labor Statistics Consumer Expenditure Survey, households in the 55-to-64 age category alone spend about $17 billion a year on travel-related services, such as lodging.
| Households | Households Ages 55 to 64 | Ages 65 to 74 | |
|---|---|---|---|
| Number of households in 2000 | 14.25 million | 11.5 million | |
| Percent change, 1990-2000 | +15% | 0% | |
| Percent change, 2000-2010* | +50% | +15% | |
| Average annual travel spending per household** | $1,200 | $1,100 | |
| Percent above/below all households | 21% above | 11% above | |
| Average household income | $62,200 | $40,700 | |
| Percent above/below all households | 9% above | 29% above | |
| *Projected | |||
| **Includes spending on food, lodging, transportation and entertainment. | |||
| Source: Census Bureau, Bureau of Labor Statistics | |||