Market Trends – commercial real estate – investment  /  September – October. 2017

 

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“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ . ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA,  CLICK HERE  AND PLEASE CALL ME.     520-975-5207 or email me walterunger@ccim.net

 

2017 Self-Storage Continues Sunny Forecast

0 basis points change in vacancy
Vacancy: Nationwide self-storage vacancy remains at a historic low of 10.2 percent during 2017, due to continued household growth and rising incomes.

2.7% increase in climate-controlled rents 
Climate-Controlled Rents:
 Healthy underlying demand for storage space continues to boost cost for rentals. The average rental rate for climate-controlled space will rise 2.7 percent to $1.63 psf, building on a 1.6 percent increase in 2016.

3% increase in nonclimate-controlled rents
Nonclimate-Controlled Rents:
 Tight market conditions are driving another year of steady rent growth in 2017. The average asking rent is expected to climb 3 percent for nonclimate-controlled units to $1.31 psf.

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“We have been spoiled for so long by low interest rates in commercial real estate.  Currently, we have to reset expectations for target returns, but there’s still lots of capital  out there, both domestic and abroad, that appreciates the value and stability of U.S. commercial real estate.  It remains to be seen, but concerns over volatility in the public REIT market may turn out to be more perception than reality.”

2

The No. 1 priority for companies seeking to locate manufacturing operations is access to skilled labor. “The biggest trend is having the workforce to meet the needs of the company in the short-term, mid-term, and long-term over the next 25 years,” says Del Boyette, president and CEO of Boyette Strategic Advisors. “You can have all the infrastructure in place, the perfect building, and the perfect site. But if you don’t have the workforce to support that business unit long-term, then the investment cannot be made at that site.”

Corporate real estate professionals play a key supporting role in the site selection process, which usually involves a large team of real estate, human resources, legal, government, IT, and tax professionals. Corporate real estate professionals usually manage the process and input from different stakeholders.

3

ULI Forecasts Moderate Growth for CRE Industry

Annual CRE transaction sales volume peaked in 2015 at  $547 billion, declined to $489 billion in 2016, and is expected  to decline to $450 billion in 2017 and 2018. However, that  volume remains well above the long-term average.

Commercial real estate prices are projected to grow at  relatively subdued and slowing rates: 5 percent for 2017;  3.5 percent for 2018; and 3 percent for 2019.

Vacancy rates for industrial, office, and retail are expected to  improve in 2017, but stay flat for 2018 and 2019. Multifamily,  however, is expected to rise to a 5.2 percent vacancy in 2017.

Briefly Noted

Hospitality — Despite the forecasts to the contrary, demand for hotel rooms grew by 2.8 percent YOY in Q1 2017 compared to Q1 2016, according to CBRE. Accelerating growth nationwide pushed up occupancy to 61.1 percent in Q1 2017, the highest level since STR began tracking this data in 1987. Some 53 of 60 markets had positive growth for hotel rooms. The top three growth markets were the geographically widespread Albany, N.Y., New Orleans, and Salt Lake City. Demand was highest among upscale hotels, with 5.8 percent growth.

Industrial — Absorption of 53.8 million sf in Q1 2017 lifted the industrial market to the highest rate in this economic cycle and much higher than 40.6 msf during the last two economic cycles, according to Cushman & Wakefield. The vacancy rate for industrial continued its fall by 20 basis points from Q4 2016 to 5.3 percent. “Online sales continue to drive significant requirements for new industrial space across the country,” says John Morris, executive managing director of logistics and industrial services for the Americas at C&W.

Multifamily — While rents ticked up in May 2017, the rate of growth in multifamily continued its slide, according to the Yardi Matrix. The average U.S. monthly rent was up $4 to $1,316, based on data from 121 markets. An oversupply of apartments nationwide is lowering demand. The difference in growth between lifestyle renters and renters-by-necessity continued. Nationally, lifestyle rents are flat YOY, while RBN rents have increased by 2.6 percent. Yardi Matrix expects multifamily to peak in  2017, although it will remain relatively robust in 2018  and 2019.

Office — While absorption in office is cooling off, the record streak of positive occupancy continues across the nation, according to Cushman & Wakefield. “The economy continues to add jobs, and most U.S. markets remain fundamentally healthy,” says Kevin Thorpe, global  chief economist at C&W. “But the combined pressures of slower job creation and rising office construction is beginning to place upward pressures on vacancy rates, particularly for larger U.S. cities.”

Retail — Value brands continue to outpace big-box stores, driven primarily by a fundamental shift among consumers toward lower prices, according to CBRE. Brands like TJ Maxx, Ross, and Stein Mart are relatively insulated from e-commerce growth compared to mid-range brands because consumers enjoy the bargain-hunting factor in retail shopping. Overall, many experts are seeing effective adaptation from many retailers to meet shifts in consumer demand.

SEE IT ALL: http://www.ccim.com/cire-magazine/articles/2017/09/market-trends/

ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA,  CLICK HERE  AND PLEASE CALL ME.     520-975-5207 or email me walterunger@ccim.net

FROM ME:

Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land  Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group.  I also sold  hundreds millions of dollars’ worth of  Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with  brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a   CCIM:   https://en.wikipedia.org/wiki/CCIM 

PLEASE CALL ME 520-975-5207 OR E-MAIL ME walterunger@ccim.net

 

Timeline of Arizona from  900 BC – 2017

ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA,  CLICK HERE  AND PLEASE CALL ME.     520-975-5207 or email me walterunger@ccim.net

______THE HABOOB_______APARTMENT-SALES-1-BIL

WEEKLY LAND CLOSING UPDATE / THROUGH September 22, 2017 / Phoenix Arizona Metro, Maricopa County, Pinal County.

WEEKLY LAND CLOSING UPDATE / THROUGH September 15, 2017 / Phoenix Arizona Metro, Maricopa County, Pinal County.

WEEKLY LAND CLOSING UPDATE / THROUGH September 1, 2017 / Phoenix Arizona Metro, Maricopa County, Pinal County.

Apartments: Construction, Planned, Prospective

Interactive Map :: 10+ Unit Apartments For Sale Greater Phoenix AZ

WEEKLY APARTMENT CLOSING UPDATE THROUGH September 22, 2017 /  Phoenix Arizona Metro.

WEEKLY APARTMENT CLOSING UPDATE THROUGH September 15, 2017 /  Phoenix Arizona Metro.

WEEKLY APARTMENT CLOSING UPDATE THROUGH September 8, 2017 /  Phoenix Arizona Metro.

WEEKLY APARTMENT CLOSING UPDATE THROUGH September 1, 2017 /  Phoenix Arizona Metro.

 

WHY PHOENIX? AMAZING!!!  POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”

 

PHOENIX TOPS US IN POPULATION GROWTH (MORE THAN LA, NYC) AND WHY THAT’S GOOD FOR THE ECONOMY, BUSINESS

DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION

ARIZONA FACTS – YEAR 1848 TO 2013

VIEW ALL OF WALTERS LISTINGS

What is a CCIM.

CLICK HERE TO VIEW MY WEBSITE

  • DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
  • The average age of the population is 34 years old.
  • The health cost index score in this area is 102.1. (100 = national average)
  • Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).

Kasten Long Commercial Group in Partnership with the AMA and WESTMARC / The  Commercial Event of the Summer

PHOENIX PROJECTED AS NUMBER ONE US HOUSING MARKET FOR 2017

LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17

Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience                                                                                                                         

Click here to View My Listings and Profile

Click here to find out what is a CCIM:

Click here to view my website:

Click her to join my mailing list :      

Walter Unger CCIM –  walterunger@ccim.net   – 1-520-975-5207  –  http://walter-unger.com

2016 Official Arizona Visitors Guide

Visit Arizona

Why Phoenix?  This is a very interesting article, you should read it, amazing, there were only 350 K people living in Phoenix in 1950

Timeline of Phoenix, Arizona history

Phoenix, Arizona

Facts of Arizona – year 1848 to 2013

Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.

walterunger@ccim.net

1-520-975-5207

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 Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages.  The interactive map  shows the location of each community (10+ units) and each location is color coded by the size (number of total units). 

 Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years.  If you have any questions about Commercial / Investment Properties in Phoenix or Commercial /  Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us. 

Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207

www.Walter-Unger.com

Walter Unger CCIM

Senior Associate Broker

Kasten Long Commercial Group

5110 N 40th Street, Suite 110

Phoenix , AZ 85018

Direct:    520-975-5207

Fax:       602-865-7461

walterunger@ccim.net

www.Walter-Unger.com

What is a CCIM.

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