Industrial Supply vs. Demand
2013 completions
Anticipated demand
Year-end vacancy
Asking rents
90 million sf
170 million sf
8.4%
up 2%–4%
Source: Marcus & Millichap
— 3Q13 PwC Real Estate Investor Survey
Top Regional Hotel Pipeline Markets
YOY increase by region from August 2012 to August 2013
Includes projects in construction, fnal planning, and planning stages
Region Mountain
41.8
% increase
New England
24.1
Pacific Total U.S.
13.4
8.2
Legislative Update:
FASB
More than 500 comments were submitted to
the Financial Accounting Standards Board
and the International Accounting Standards Board's advisory committee, many of
them criticizing the plan to overhaul lease
accounting rules next year. CCIM Institute
participated in coalitions that submitted
comments to FASB/IASB. Concerns specifc
to the real estate industry include:
• Increase in recorded lessee liabilities
would result in unexpected technical violations of fnancial debt covenants, ofering lenders the opportunity to restrict
credit availability.
• Lenders will likely require monetary penalties that violate debt covenants.
• Changes would increase the cost of lending and reduce availability of credit.
• Firms would face increased administrative costs for fnancial reporting, accounting functions, and internal controls.
• Companies may seek shorter lease terms,
resulting in reduced borrowing capacity
for investment real estate.
FASB/IASB plans to make a fnal decision
in 2014 with a goal of implementing new
rules in 2017.
Go to CCIM.com for further updates on
current legislation and look for the 2014 Legislative Outlook in January/February 2014
CIRE.
Source: STR
10
November | December | 2013
December 2013
embe 2013
mbe
b
Commercial Investment Real Estate
Leslie Banks/Thinkstock; Jorge Salcedo/Thinkstock; kennicaraballo/Thinkstock
"The lack of a knee-jerk reaction to higher
interest rates on the part of investors also
reflects their confidence in the industry."