Commercial Investment Real Estate

MAR-APR 2015

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.

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43 March | April | 2015 CCIM.com Saddako/Thinkstock Á N A T I O N A L "The Small Business Optimism Survey rose 2.3 points to 100.4 in December 2014, its highest level since October 2006, a strong signal that American small businesses could be fi nally shaking off the effects of the Great Recession." — Bill Dunkelberg, NFIB Chief Economist M I D W E S T Top Midwest Job Markets Employment growth, 2015F Nashville, Tenn. Louisville, Ky. Indianapolis Milwaukee St. Louis U.S. metro average 3.1% 2.4% 2.4% 2.3% 2.1% 2.1% Á Ä S O U T H Orlando Tops Multifamily Index T ree Florida cities placed on the Multifamily Opportunity Index, indicating "outsized near-term upside potential in the form of price appreciation," according to Marcus & Millichap's 2015 Apartment Report. First-place Orlando, fourth-ranked Tampa-St. Petersburg, and Fort Lauderdale at seventh place have seen signif cant rent and occupancy gains unaccompa- nied by value appreciation. In Orlando's case, "per-unit prices in the metro are of more than 30 percent from their cyclical peak, despite a nearly 16 percent gain in revenues," according to M&M.; MARKET YE EFFECTIVE RENTS % INCREASE 2014 2015F Orlando $955 $1,005 5.2 Tampa-St. Petersburg $937 $978 4.3 Fort Lauderdale $1,311 $1,372 4.6 Source: Marcus & Millichap Source: Marcus & Millichap E A S T Boston Joins the Big City Ranks Af er a year totaling $9 billion in of ce transactions — an 80 percent YOY increase — Boston joins the ranks of major global investment cities, says CBRE's 2015 New England Outlook report. A total of 32 class A of ce properties located in the greater Boston CBD area traded hands in 2014, representing an inf ux of capital from foreign and other out-of- market investors. One such transaction was the $2.1 billion sale of f ve Boston of ce towers in the Blackstone/EOP portfolio to Canada-based Oxford Properties. "Boston represents a value investment compared to New York, San Francisco, and other gateway cities," says the CBRE report, noting that outside investors have little interest in suburban properties, creating opportunities for those investors priced out of the CBD.

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