Mid Q2-2015 Market Update – Fewer Options Means We Need to Hunt For Good OpportunitiesMay 29, 2015
I just read a recent article from Costar and they noted that “Commercial real estate owners posted strong net operating income (NOI) growth last year. For the properties reporting year-end 2014 financials, NOI grew by 2.8% on average, compared to growth of 2.64% in 2013, based on NOIs reported by properties collateralizing loans in conduit CMBS transactions.” (Article Link Here)
What does this mean to tenants or buyers? For tenants in the leasing markets, rents are still on the rise and there are fewer spaces to consider, the lowest we’ve seen in the last 7+ years. On the sale side of the business it is more of the same. Cap rates remain low and the bigger story is the lack of product available. This means you will need to hunt more for your opportunities whether it is for lease or for purchase. I am working on several deals that are off market investment opportunities for clients just because of the lack of good properties on the market.
If you are looking for more specific data, we should be releasing our Q2 market reports at the beginning of July. Let me know if you have any questions on any specific market or product type.