VACANCIES DECLINE , RENTS JUMP IN STRONG MULTIFAMILY MARKET |
WILL WASHINGTON BECOME A MIXED-USE CITY ? |
SUPPLY CHAIN DISRUPTIONS OPEN DOOR FOR 3 EMERGING MARKETS |
LIFE SCIENCES LEAD BOOMING HEALTH CARE CRE MARKET |
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This page , left to right : John Coletti , Amedved , DSCZ , Andrew Brookes |
Occupancy in multifamily properties hit a record high of 97.1 percent in the fall of 2021 , according to a report from Lee & Associates . Considering the clear demand , rents also realized a 10.3 percent year-overyear growth across the country , with Phoenix , Las Vegas , and Tampa , Fla ., reporting increases above 20 percent . Smaller markets like Boise , Idaho , and Naples , Fla ., also had increases north of 20 percent .
Investment activity continues to be robust in the market sector , with sales topping 92 billion through August 2021 . According to the report , multifamily properties have increased an average of 13 percent since before the pandemic . The researchers suspect that the rental market has been strongly supported by millions of people who have been priced out of the housing market , which has seen significant year-over-year price increases in the wake of the pandemic .
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Considering the changes in daily life for residents of Washington , D . C ., mixed-use neighborhoods could grow as more people live , work , eat , and relax in a smaller geographic area than before COVID-19 , according to “ Is Mixed-Use the Future of Downtown D . C .?” a new report from the D . C . Policy Center .
“ One expectation ( or hope ) is that central business districts will slowly change into mixed-use neighborhoods with a greater number of residents , increasing the amount of economic activity ,” writes Bailey McConnell , the report ’ s lead author .
With 75 percent of downtown real estate dedicated to office , this area was especially vulnerable during lockdowns and quarantine . But a relatively resilient multifamily market , according to the report , shows people still want to live in the city . One solution could be converting unused office space to residential use , which would diversify the downtown area .
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Three key North American markets are primed for growth given the current demand for industrial CRE , according to a recent report from CBRE .
Greenville-Spartanburg , S . C .: Centrally located between Atlanta and Charlotte , N . C ., this market is a near-ideal spot for distribution space . The Port of Charleston , S . C ., allows for overnight service to regional distribution centers .
Louisville , Ky .: Having UPS Worldport , the global shipping and receiving company ’ s biggest package-handling facilities , is reason enough to keep an eye on Louisville . But the market also has a population of nearly 30 million within 250 miles , along with five major auto assembly plants within 120 miles .
Monterrey , Mexico : Monterrey also accounted for more than half ( 52 percent ) of all industrial absorption in Mexico in 2020 .
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The health care sector has seen huge investments in R & D , job growth , demand for lab space , and new construction starts . Looking at the Boston area alone , total lab inventory has more than doubled in the past three years , from just over 20 msf in 3Q2018 to more than 42 msf in 3Q2021 , according to recent reporting from CBRE .
Laboratory and R & D facilities have seen vacancy rates drop to 4.9 percent nationally in 3Q2021 , with major markets like San Francisco ( 2.6 percent ), New York ( 1.1 percent ), and Boston ( 1.1 percent ) seeing near full capacity . Cap rates for R & D and lab space have been steadily declining for the past decade , finally dropping below 6 percent in 3Q2021 from 7.7 percent in 3Q2012 . To meet such demand , some medical office buildings are being sold for conversion to R & D / lab sites , including a more than $ 250 million deal for Shady Grove Biotech Park in Maryland .
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