Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/443516
42 January | February | 2015 Commercial Investment Real Estate N O R T H Canadian Investment Prospects, 2015 Industrial and hotel top the list of favored Canadian real estate investment pros- pects for 2015, followed by multifamily, of ce, and retail, according to Emerging Trends in Real Estate 2015. Warehouse and hotels show the greatest increase in investor favor over 2014, while multi- family interest remains on par with last year. Investor interest in of ce and retail lag behind last year. Regarding geo- graphic markets, "Western Canada will remain the place to be, buoyed by strong performance in Calgary and Edmon- ton," according to the report. "Commer- cial and of ce space on the edges of the urban core looks promising — as long as it's the right price. Speculative indus- trial appears strong in Alberta and the western part of Greater Toronto. T ose focused on Toronto opportunities would do well to explore retail opportunities as well as multi-residential opportunities along transit corridors. And in a country with an aging population, seniors hous- ing — well managed and in good loca- tions — of ers attractive potential." N A T I O N A L NCREIF Property Index, 3Q14 The NPI consists of 7,171 investment-grade, non-agricultural, income-producing properties consisting of apartments, of ce, retail, industrial, and hotels. REGION PERCENTAGE OF PROPERTIES IN NPI 3Q14 RETURNS (%) TOTAL 2014 RETURNS (%) East 34.3% 2.24 9.2 Midwest 9.5 2.62 10.4 South 20.8 2.75 12.8 West 35.5 2.95 12.7 Source: NCREIF REGIO NAL OUTLO O K M I D W E S T 2015's Strong Local Investment Markets Market Strongest sector Minneapolis/St. Paul Industrial Indianapolis Industrial Columbus, Ohio Industrial Madison, Wis. Multifamily/ Hospitality Omaha, Neb. Retail Source: Emerging Trends in Real Estate 2015 Á Florida's Big Deal Florida's net lease market is one of the nation's most active, according to a recent report by Calkain Cos. and Beshears & Associates. Banks have the lowest asking and sales cap rates, averaging 4.95 percent and 5.13 percent respectively. Case in point: a Bank of America property in Fort Lauderdale, Fla., sold for close to $9.3 million, at a cap rate of 4.6 percent. CBRE sold the property for Trion Group, through competitive bidding that garnered 15 offers. Bank of America has a 20-year NNN lease on the 5,835-sf property with 12 percent increases every fi ve years and 10 fi ve-year options. SOUTH Á