MARKET TRENDS Is Now the
Time to Buy? 2Q12
Source: NREI/Marcus & Millichap Investor Sentiment Index
Sector
Multifamily Hotels
Industrial Retail Land
Mixed-Use Office
0 37% 10 20 30 40 50 60 Percentage of investors who say buy 60%
55% 53%
50%
45% 44%
Retail Transaction Volume, 1H2012 SECTOR
Strip center Regional mall Single tenant
Urban/storefront IIn As
ndustrial Sector Secto Im Impro
Q12, the industrial sector has added as much space as it shed during the recession, according to Cassidy rley's 3Q analysis. Users have leased 166 msf of industrial space in the last 21 months, equal to 900 buildings, accordiing to tng to the U.S. Industrial Trends Report. In the 3Q12 alone, 27.5 msf was absorbed, bringing national vacancy to 9.0 p
s o off 3 3Q
Turle s 3Q a acco
ent. While industrial sales overall were down for 1H12, single-property sales were up 20 percent, along witith sales prices. T e lack of new supply — warehouse development is 67 percent below peak — and a net demand 0 m f to 1
0 percen le
for 80 msf to 100 msf in 2013 should push rents upward in the new year. Source: Real Capital Analytics provev s
$ (IN BILLIONS) $8.6 $8.1 $4.4 $2.4
YOY CHANGE –44% 373% 49% 21%
Quantitative Easing Round 3: Good News? "This action bolsters the mortgage market, and although credit requirements are a hurdle, the Fed has removed much of the near-term interest rate risk, creating more certainty for lenders and borrowers. The commercial sector stands to benefi t as well. Increased liquidity will aid in the restructuring of
maturing and problematic loans and drive capital into real estate." — Hessam Nadji, managing director, research services, Marcus & Millichap
10 November | December | 2012 Commercial Investment Real Estate
Sung-Il Kim/Corbis