Commercial Investment Real Estate March/April 2019 | Page 8

MARKET
TRENDS
Big Box Meets Town Center
Walmart Inc. is planning Walmart Town Centers on underused land at its stores around the country. The concept will include restaurants,
shops, and entertainment venues, as well as community space available for activities such as farmers’ markets and holiday events. Work
will start this spring on an existing Supercenter in Loveland, Colo., with other projects planned for Texas and Washington.
Cold Is Hot
6
March | April 2019
Nashville, Tenn., had the country’s fastest-growing medical office rent
between 2Q2017 and 2Q2018 at 7.8 percent, considerably above the
national average of 1.4 percent.
Medical Office Rent Growth
Rent Growth % Vacancy Rate %
U.S National Average 1.4 8.4
Nashville, Tenn. 7.8 4.9
New York–Manhattan 7.7 7.9
Louisville, Ky. 7.3 4.2
Seattle 7.1 4.7
Indianapolis 5.4 6.1
Source: CBRE
COMMERCIAL INVESTMENT REAL ESTATE
Source: JLL
Medical Office Rents on the Rise
Growing consumer demand and tariffs
from China on U.S. meat
have driven up demand
for industrial cold
storage space.
A recent report
from JLL notes that
operating profits in
cold storage facilities
have risen 83 percent
in the last five years.
The U.S. currently has 3.6
billion cubic feet of cold
space, but available space
decreased this summer
when meat marked for
export to China had to be
rerouted. The increased
popularity of grocery
delivery services and
consumer preferences for
fresh food also have driven
up demand.