A MIXED BAG FOR INDUSTRIAL REITS
Industrial REITs delivered a mixed performance during the month of September. However, the top-performing REITs in the sector did outstrip the broader SNL Equity REIT index, which itself declined 0.62%.
| Company Name | Ticker | Closing Price ($) | Price Change Sept. (%) | Equity Market Cap ($M) |
|---|---|---|---|---|
| CenterPoint Properties Trust | CNT | 43.58 | 4.41 | 2,103.5 |
| First Potomac Realty Trust | FPO | 20.66 | 2.13 | 321.3 |
| Monmouth Real Estate Investment Corp. | MNRTA | 8.34 | 1.58 | 141.7 |
| Liberty Property Trust | LRY | 39.84 | 0.13 | 3,538.5 |
| AMB Property Corp. | AMB | 37.02 | -0.11 | 3,241.7 |
| EastGroup Properties, Inc. | EGP | 33.20 | -0.75 | 698.3 |
| Catellus Development Corp. | CDX | 26.51 | -2.07 | 2,731.3 |
| ProLogis | PLD | 35.24 | -2.63 | 6,572.0 |
| First Industrial Realty Trust Inc. | FR | 36.90 | -7.26 | 1,763.0 |
| Sources: SNL Financial | ||||
OFFICE RENTS TO UNDERGO A GROWTH SPURT?
New York, Washington D.C., Southern California and South Florida will likely experience the greatest rent growth between 2004 and 2010. Low vacancy rates and economic growth in these markets will stimulate growth, reports real estate research firm Delta Associates.
| Market Annual | Average Annual Change in Rent - 1990s Expansion | Projected Average Annual Change in Rent - 2004-2010 |
|---|---|---|
| New York | 6.3% | 7.5% |
| Orange County | 3.6% | 7.0% |
| Washington, D.C. | 4.8% | 6.5% |
| South Florida | 3.8% | 6.5% |
| Los Angeles | 2.4% | 6.0% |
| Phoenix | 6.4% | 6.0% |
| Boston | 8.4% | 5.5% |
| Dallas/Ft. Worth | 4.9% | 5.5% |
| Atlanta | 4.1% | 5.0% |
| Houston | 3.9% | 5.0% |
| Source: Delta Associates | ||
SMITTEN WITH SMALL CITIES
Most analyses of migration patterns in America focus on Baby Boomers' eventual Frost Belt-to-Sun Belt tsunami. But, an under-the-radar trend shows a quieter exodus crossing that grain, bypassing the suburbs and sunny climes for more rural, less subdivided environs. The National League of Cities reports that small cities — those with less than 50,000 residents — grew by 18.5% through the 1990s, compared with 12.9% growth for medium-sized cities (population 50,000 to 175,000) and 9.1% for the nation's biggest burgs.