Industrial rents in Southern California dipped in the first quarter, marking the first time they have decreased since 2009, according to the latest data from Savills. The drop is slight, less than $0.15 per SF in both Los Angeles and the Inland Empire, mirroring the size of the slump in 2009, according to Savills [...]
It will take time for the markets to absorb the amount of space delivered over the last two years. During the pandemic, industrial properties were probably the hottest ticket around. The need to distribute and sell products at physical arms-length, the sharp explosion e-commerce, the shutdowns of businesses — logistics, warehousing, and the development [...]
Peeping in at the corners of the U.S. CRE financing problems — rates too high, banks wary to lend, refinancing tough to get — are the various rising costs of commercial real estate properties. Expenses that act like a pry bar, pulling profit out of a property’s NOI. Rising insurance premiums and lower levels [...]
Last year took many twists and turns, some of which were forecast and many of which were not. Hopefully we are on a more predictable path this year as many of 2024’s expected themes have their seeds in 2023. Following are my top predictions for 2024 1. The booming industrial market will begin to [...]
The rise in vacancy rates in the industrial sector amid slowing demand and the wave of new supply, which will come to market over the next year, is the key macro trend for 2024, according to a new report from Jason Price, Senior Director, Americas Head of Logistics & Industrial Research, Global Research, US, [...]
When the cost of debt is so high, the return becomes lower than what the 10-year actually pays. The 10-year US Treasury is currently at a level not seen since June 2007 – 4.79% after the Oct. 6 trading day and it was at 4.66% after trading on Oct. 10. Commercial real estate professionals – [...]
Last week, and despite the popularity of Proposition 13, the California Legislature passed two proposed amendments to the California Constitution that rip huge holes in that iconic taxpayer protection overwhelmingly approved by voters in 1978. But here’s the good news. These bills must be approved at a statewide election and, given the anger from [...]
The Federal Reserve resumes Interest Rate hikes with 11th increase since early 2022. As was widely expected, Federal Reserve officials announced another interest rate hike Wednesday afternoon, causing real estate companies to settle in for yet more price compression and sluggish financial markets. The increase came on the heels of positive inflation news earlier [...]
Just over a week after business groups appealed to the Biden administration for help resolving a labor dispute at the Ports of Los Angeles and Long Beach, the Pacific Maritime Association and the International Longshore and Warehouse Union reached a tentative agreement. The deal’s full terms weren't released, according to CNBC, but the contract [...]
Inflation was a blip, and long-term ultra-low interest rates will return — but only because world economic growth will be anemic. That is the not entirely upbeat conclusion of the latest IMF World Economic Outlook, which portrays inflation as a blip, not a global reset. The document looks at growth potential, inflation and interest rates, and [...]
