CMBS OFF RECORD PACE
The $97 billion in commercial mortgage-backed securities issued in 2001 broke the previous record of $78.4 billion in 1998. Lend Lease Real Estate Investments Inc. predicts that CMBS issuance will decline to about $79 billion this year due to credit-quality concerns, rising delinquency rates and a decrease in the number of securitization deals being brought to the market.
Source: Commercial Mortgage Alert, Lend Lease Real Estate Investments
OFFICE ACQUISITIONS LAG
Office acquisition volume declined 31% in 2001 from the decade peak in 1998, primarily as a result of a bid-ask price gap. Acquisitions in the first half of 2002 totalled a mere $5 billion.
Jack Minter, managing director at Credit Suisse First Boston, predicts volume will continue to drag through year-end.
*Deals include Class-A and Class B buildings over 100,000 sq. ft.
Source: Lend Lease Real Estate Investments/Jones Lang LaSalle and CS First Boston
TOP TEN INDUSTRIAL GIANTS
The total inventory for the U.S. industrial market is 11.2 billion sq. ft., with the metropolitan Los Angeles market leading the way, according to the Society of Industrial and Office Realtors. To put into context just how large these top markets are, SIOR reports that the average industrial market size is 90.7 million sq. ft. Included in the totals are warehouse and distribution space, light and heavy manufacturing space, and flex space.
| Largest Markets | Size (in millions of sq. ft.) | Vacancy Rate | |
|---|---|---|---|
| 1. | Los Angeles | 991 | 4.90% |
| 2. | Chicago | 976 | 11.5% |
| 3. | New York/Northern N.J. | 712 | 9.80% |
| 4. | Dallas | 485 | 11.1% |
| 5. | Atlanta | 410 | 13.0% |
| 6. | Central New Jersey | 331 | 7.10% |
| 7. | Cleveland | 315 | 9.40% |
| 8. | Minneapolis | 295 | 6.50% |
| 9. | Detroit | 265 | 12.6% |
| 10. | Houston | 259 | 9.20% |
| Source: Society of Industrial and Office Realtors, CoStar Group Inc., CB Richard Ellis, Cushman & Wakefield | |||
REELING RETAILERS
During the boom economy, retail bankruptcies dropped to a low of 13 in 1998 as consumer spending kept many retailers afloat. But the number of bankruptcies shot up to 31 in 1999 as the market became more crowded and weaker retailers were edged out of business. Bankruptcy rates are expected to remain at comparable levels in 2002 as retailers continue consolidating and closing unprofitable stores.
*Retailers include national and regional chains.
Source: International Council of Shopping Centers/Credit Suisse First Boston
TOP U.S. CONVENTION SITES:
Conventions are a boon to the entire hospitality business. In major convention markets, the spectrum of a city's hospitality community — including hotels, restaurants, theme parks and sporting events — benefits from visitor spending.
| City | Shows | ||
|---|---|---|---|
| 1. | Las Vegas | 40 | |
| 2. | Chicago | 22 | |
| 3. | New Orleans | 15 | |
| 3. | New York City | 15 | |
| 3. | Orlando, Fla. | 15 | |
| 6. | Atlanta | 13 | |
| 7. | Anaheim, Calif. | 9 | |
| 8. | Dallas | 8 | |
| 9. | San Francisco | 7 | |
| 10. | Los Angeles | 6 | |
| 11. | Indianapolis | 5 | |
| 11. | Miami Beach | 5 | |
| 13. | Louisville, Ky. | 4 | |
| 13. | Rosemont, Ill. | 4 | |
| 15. | Philadelphia | 3 | |
| 15. | Salt Lake City | 3 | |
| 15. | San Diego | 3 | |
| 18. | Houston | 2 | |
| Ranking is based on the number of annual trade shows with a minimum of 142,500 sq. ft. of convention space held in each U.S. city in 2001. Shows include all industries. | |||
| Source: Tradeshow Week's Trade Show 200, 28th Annual Edition, April 2002 | |||