Commercial Investment Real Estate May/June 2017 - Page 43

{SOUTHEAST} Miami’s Industrial Market Sizzles 180.6 msf Total office inventory in the Miami-Dade County industrial market 5,608,171 sf Direct net absorption for 2016 2.37% {SOUTHEAST} Charlotte Hotel Market Shines Several new hotels will open in Charlotte, N.C., during 2017, adding more than 1,000 new rooms to a robust hospitality market, according to the Charlotte Area Hotel Association. Strong corporate business is propelling the construction of new hotels that also will accommodate convention spaces. Among the new hotels are the Embassy Sites, Spring Hill Suites, and Kimpton Hotel. Overall vacancy rate $6.82 psf Average rental rate for industrial space in Miami-Dade County on a triple-net basis { WEST } Source: Avison Young {MIDWEST} California Industrial Markets Remain Robust Four underlying economic forces are driving the high demand for industrial space in California: manufacturing; exporting goods to Asia and Mexico; importing consumer goods from manufacturing centers in Asia; and e-commerce. The extremely low vacancy rates are expected to last through as least 2019, according to UCLA Anderson Forecast. In fact, the shift to e-commerce is occurring faster than warehouse space is being built. For instance, the warehouses in San Pedro Bay, Calif., of the Inland Empire region used to be an extension of the ports, but now are an industry in their own right. { NORTHEAST } Mixed-Use Trophy Property Back to Local Owners Millennia Companies of Valley View, Ohio, purchased the 57-story Key Center, a mixed-use property, in Cleveland for $267.5 million from Columbia Property Trust. Key Center encompasses a 1.3-msf office complex, a 400-room Marriott hotel, and nearly 1,000 park- ing spaces in an underground garage. Millennia plans to upgrade the public spaces and office floors in the iconic landmark complex for new tenants, including its own headquarters. CCIM.COM Boston Metro Scores Low Office Vacancy Rates Office and lab space were the hottest commodity in Boston during 2016, with no vacant lab space left in Cambridge, Mass. In close proximity to major U.S. hospitals and universities, especially Harvard University, Cambridge leads the world for biotech company ten- ancy and revenue YOY, according to Avison Young. During the last five years, the deciphering of the human genome has attracted an unprecedented level of biotech and life-science companies needing office and lab space to the Boston metro area. May | June 2017 41