OFFICE-USING JOB GROWTH VARIES WIDELY BY METRO
According to Property and Portfolio Research and Economy.com, nearly half of the major metros lost jobs between 2003 and 2004. However, office-using job growth rebounded during 2004, and through August, only seven major metro markets continued to lose jobs.
INDUSTRIAL REITS — EBB BEGINNING IN 2005
The SNL Industrial REIT index underperformed the broader SNL Equity REIT index during the month of January. The disparity is largely due to sector heavyweights AMB, Catellus, Liberty Property and ProLogis, which together comprise over 75% of the sector's total equity market cap. Industry-wide, large cap REITs (over $2B) have underperformed all REITs with large cap prices ending down 6.1% over the same one-month period.
| Company Name | Ticker | Closing Price ($) | Price Change One Month (%) | Equity Market Cap ($M) | |
|---|---|---|---|---|---|
| Monmouth Capital Corp. | MONM | 6.45 | 0.62 | 23.2 | |
| Monmouth Real Estate Investment Corp. | MNRTA | 8.51 | 0.12 | 147.8 | |
| First Industrial Realty Trust | FR | 40.16 | -0.35 | 1,978.3 | |
| EastGroup Properties | EGP | 37.07 | -1.20 | 780.2 | |
| First Potomac Realty Trust | FPO | 21.85 | -3.06 | 339.8 | |
| AMB Property Corp. | AMB | 38.30 | -5.43 | 3,369.8 | |
| CenterPoint Properties Trust | CNT | 43.93 | -5.71 | 2,141.3 | |
| Liberty Property Trust | LRY | 39.29 | -8.82 | 3,508.7 | |
| ProLogis | PLD | 38.50 | -9.62 | 7,366.4 | |
| Catellus Development Corp. | CDX | 27.19 | -10.41 | 2,801.6 | |
| SNL Industrial REIT Index | -7.48 | ||||
| SNL Equity REIT Index | -5.84 | ||||
| * Pricing as of 2/3/2005. | Source: SNL Financial | ||||
OFFICE PROPERTY SALES SURGE IN 2004
According to Real Capital Analytics, office property sales totaled $72.4 billion in 2004, representing an increase of 57% by dollar volume and 38% by number of properties sold compared to 2003. CBD towers accounted for 44% of sales volume in 2004, but represented only 20% of office properties traded.
| Rank | Property Name | Location | Price | Price per Sq. Ft. | Sq. Ft. | Buyer |
|---|---|---|---|---|---|---|
| 1 | Sears Tower | Chicago, IL | $840,000,000 | $244 | 3,446,363 | Feil Organization |
| 2 | Bank of America Center | San Francisco, CA | $825,000,000 | $458 | 1,800,000 | Karsick/Werner/IPC US |
| 3 | 111 Eighth Street | New York, NY | $758,078,000 | $274 | 2,800,000 | Jamestown |
| 4 | State Street Financial Center | Boston, MA | $705,400,000 | $672 | 1,050,000 | American Financial Realty Trust |
| 5 | Houston Center | Houston, TX | n/a | n/a | 3,000,000 | JP Morgan Investment Mgmt. |
| 6 | AT&T Corporate Center | Chicago, IL | $480,000,000 | $320 | 1,500,000 | Tishman Speyer Office Fund |
| 7 | Shell Plaza Towers | Houston, TX | $480,000,000 | $200 | 2,400,000 | Hines Interests |
| 8 | 1001 Pennsylvania Ave | Washington, DC | $466,700,000 | $582 | 802,390 | Teacher's Insurance & Annuity |
| 9 | Marine Midland Bank Bldg. | New York, NY | $456,500,000 | $380 | 1,200,866 | DIFA |
| 10 | Colorado Center/MGM Plaza | Santa Monica, CA | $444,000,000 | $374 | 1,187,000 | Teacher's Insurance & Annuity |
| 11 | Bank of America Tower | Los Angeles, CA | $435,000,000 | $311 | 1,400,000 | Trizec Properties |
| 12 | Bertelsmann Bldg. | New York, NY | $426,000,000 | $387 | 1,100,000 | Paramount Group |
| 13 | Manhattan Mall | New York, NY | $421,000,000 | $421 | 1,000,000 | HausInvest Global |
| 14 | 300 Park | New York, NY | $387,058,824 | $539 | 718,700 | Tishman Speyer Office Fund |
| 15 | 179 Maiden Lane | New York, NY | $355,000,000 | $325 | 1,091,850 | Moinian Group |
| Source: Real Capital Analytics | ||||||