Commercial Investment Real Estate September/October 2019 | Page 8

MARKET TRENDS Debt Rises With Banks Holding the Most Commercial Banks Agency/GSE Portfolios and MBS Life Insurance Companies CMBS, CDO, Other ABS Issues Percentage Amount 39.0% 19.9% 15.4% 13.5% $1.4 trillion $687 billion $532 billion $466 billion Source: Mortgage Bankers Association Outstanding commercial/multifamily mortgage debt rose $45.4 billion — 1.3 percent — to $3.46 trillion in 1Q2019. The largest holders of commercial/multifamily mortgages are: Amenities in Industrial Facilities As the demand for labor in industrial facilities increases, companies are looking for ways to make them more appealing to workers. The top industrial amenities to attract and retain labor are: 1. Temperature control (cooling and heating). 2. Access to public transportation. 3. On-site food options, such as a cafeteria, food trucks, or nearby restaurants. 4. Gym or workout facilities. 5. Windows for natural light and fresh air. 6. Electric vehicle charging. 7. Walking trails and outdoor seating. 8. Games (e.g., table games or basketball court). 9. Day care. 10. Improved restrooms, break areas, and privacy rooms. Source: Cushman & Wakefield 6 September | October 2019 Everyone Has to Eat Grocery-anchored shopping centers will continue to be popular among investors thanks to steady demand and low competition from e-commerce. Among the trends to watch in the grocery sector over the next decade: n Strong growth across nontraditional and specialty formats. n Increased consolidation among smaller and regional chains. n More small-format, convenience-oriented concepts in urban locations. n An increase in online grocery share, which will require adjustments in-store layout for pickup options. Source: “2019 U.S. Food in Demand Series: Grocery,” CBRE COMMERCIAL INVESTMENT REAL ESTATE