Wednesday, February 6, 2013

Rising Demand Propels Warehouse Market to Strong 2012 Finish




National Commercial Real Estate News From CoStar Group





Rising Demand Propels Warehouse Market to Strong 2012 Finish



With a burst of positive absorption in the fourth quarter, demand for U.S. warehouse space moved from the recovery to the expansion phase in 2012, as rising occupancy rates and limited new construction helped push rents a bit higher across a majority of markets.

Positive net absorption of warehouse space spread across the country, causing the U.S. vacancy rate to decline 30 basis points in the fourth quarter to 8.9% among the 210 markets tracked...









2013 Deal Strategy: Move Forward, but Prudently



Sensing that commercial real estate markets are near a point that properties are not going to get any cheaper, there is a strong temptation to jump in and grab deals while the getting is good and real estate is still affordable.

However, CRE brokers and advisors who have been refined by five years of recession are cautioning their clients against over-exuberance. Instead, they are encouraging clients to measure their risk tolerance and move forward...









The State of CRE Lending: Banks Have Nothing Bad To Say, And That's Good News



When it comes to bankers and CRE loans, no news is good news.

As the economic recovery continues, the nation's bankers are spending noticeably less and less time in their quarterly conference earnings conference calls talking about commercial real estate as a factor in the underperformance of their loan portfolios. It was hardly a topic at all in the most recent round of calls, which wrapped up this past week.

The change denotes the growing...









As Multifamily Debt Demand Grows, More Lenders Stepping Up



For the first time in more than a decade, apartments have replaced office buildings as the top investment sector for commercial real estate in the United States, and with that demand has come a commensurate need for debt capital and a growing source of lenders to fill the need.

New development of multifamily space across the U.S. has been unabashedly robust over the past year, leaving many anxious about the impact the new supply will have on market...









21% Drop in CRE Mortgages Maturing This Year; Refi Prospects Strong



Defusing once what once seen as a ticking time bomb for the nation's financial markets, nearly $200 billion, or 8%, of the outstanding balance of commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2013, a 21% decline from the $150.6 billion that matured in 2012, according to the Mortgage Bankers Association.

The loan maturities vary significantly by investor group. Just 5% ($16 billion) of the outstanding...









Facility Closures & Downsizings: KeyCorp Stepping Up Bank Branch Closures



Bank holding company KeyCorp is stepping up its cost-cutting initiatives this year.

The Cleveland-based company called the $60 million in annualized savings it achieved last year a strong start. Now it is on track to realize cost savings of $150 million to $200 million on a run rate basis by the end of this year.

“We closed 19 underperforming branches last year as part of our plan to rationalize our branch network. Another 40 to 50 branches...






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