MULTIFAMILY ABSORPTION REBOUNDS AFTER 1ST COVID WAVE |
YOUNGER GENERATIONS MORE OPEN TO WORK-SHOP- PLAY LIVING SPACES |
COLD STORAGE MAY PROVE CRUCIAL IN COVID VACCINE |
BOAT BUYERS IN MARKET FOR STORAGE SPACES |
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This page , left to right : Barry Winiker , Ryan J . Lane , Bill Oxford , Gaspr13 |
When the U . S . faced shelterin-place orders across the country in the first half of 2020 , apartment absorption plummeted . But the multifamily sector rebounded in July and August , with 50,000 units absorbed — nearly as many units as in the first half of the year , according to Yardi Matrix ’ s study of 17 million apartment units in its database . As areas began to reopen after the initial shutdown , pent-up demand helped many metro areas rebound .
Cities in the Sunbelt and West saw solid absorption numbers , including Dallas ( 4,000 ), Denver ( 3,600 ), Atlanta ( 3,000 ), and Phoenix ( 2,100 ). Gateway metros struggled , with New York , Boston , Chicago , Los Angeles , and San Francisco accounting for a net absorption of -4,300 units . These urban centers are continuing to see many residents exit the market as office , retail , entertainment , and hospitality properties remain closed or limited in operation .
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Big-box retail outlets were in trouble before 2020 brought along a once-in-a-century economic disruption . The problem , according to Shopping Center Business , isn ’ t that retail is overbuilt ; it ’ s that it ’ s “ under demolished .” Potential replacements for large retail properties include mixed-use developments with hotel , office , residential , and medical uses .
Shopping Center Business found that younger people are more amenable to living in such all-in-one communities . Just 71 percent of people 55 years and older would consider such a development , compared to 80 percent of individuals from 39 to 54 years old and 85 percent of people between 21 and 38 years old . While mixed-use and adaptive reuse projects will continue to be hot topics in 2021 , these properties appear to appeal to many younger consumers .
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The U . S . boasts nearly 250 million sf of cold storage inventory , according to JLL , roughly 1.8 percent of all U . S . industrial space . Vacancies have been below 10 percent for decades , but look for demand to increase . With pharmaceutical companies working on hundreds of potential COVID-19 vaccines , cold storage could be a vital link in bringing doses to millions of Americans . Increased demand for last-mile delivery and growing supply has positioned the sector for success , with some locations capable of fulfilling vaccine-related needs .
“ The vaccine is vital to save lives and help facilitate economic recovery ,” says Peter Kroner , investor research , industrial , JLL . “ We expect to see an increase of hundreds of thousands of square feet of cold storage space in strategic locations across the globe in order to meet demand .”
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Thanks to the social pressures associated with proper physical distancing in the face of the coronavirus pandemic , boat sales headed north for much of 2020 . According to the National Marine Manufacturers Association , sales jumped 30 percent in the summer . But , according to Bisnow , consumers are now faced with the challenge of finding places to store them .
“ The boater demand is growing like crazy , but the supply of new marinas is obviously not moving too much ,” says Integra Investments Principal Victor Ballestas , during a November Bisnow webinar about the future of marinas . “ That supply / demand constraint is where we think that the opportunity lies in the space .”
For the near term , the future of marina space might be upward , with developers building multilevel properties that can store and retrieve boats automatically .
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