Miami a Top 10 Global Destination for Commercial Real Estate Investment Capital

Miami a Top 10 Global Destination for Commercial Real Estate

Miami a Top 10 Global Destination for Commercial Real Estate

On the heels of a very strong 7-year run of foreign capital buying Miami condos and homes, Miami has something new to be cheerful about — the growth of foreign real estate investment capital now pouring money into Miami’s commercial real estate sector.

According to the latest research from global property advisor CBRE Group, worldwide commercial real estate investment activity reached $407 billion in the first half of 2015, the strongest first half (H1) to a year since 2007, and up 14 per cent year over year.

The Miami metro area ranked 7th among the world’s leading global capital destinations, just ahead of Tokyo and just behind Washington D.C., with a total of $7.7 billion of foreign and domestic investment during the first half of 2015. This is the first time since the global financial crisis that the Miami metro area was among the top 10 global real estate investment destinations.

Though rapid growth has been maintained for several years, the rate of growth slowed in H1 2015 and was vastly different at a regional and country level. The Americas experienced growth of 31 per cent year-over-year, while a strong dollar impacted activity in EMEA (Europe, Middle East & Africa) and Asia Pacific (APAC). In dollar terms, EMEA was up just 5 per cent from H1 2014, with APAC down 19 per cent year-over-year. When measured in local currency EMEA grew by 25%, while a decline in APAC was more muted at 9% year-on-year.

Last year, the Miami metro area ranked 12th globally, with a year-end total US $13.1 billion invested from foreign and domestic sources. The Miami metro area also continues to be a particularly attractive destination for international capital, rising from 49th place in 2013 to 19th place in H1 2015, with a total of $913 million invested from international sources so far this year.

The U.S., U.K. and Germany remain, by far, the largest CRE investment markets globally. A combined total of $301 billion was transacted in these three countries in H1 2015–representing an unusually high (74 per cent) share of the global market and 10 per cent above the long-term average of 64 per cent.

“Capital flows into real estate are well supported. Even ignoring rental value growth, real estate offers a ‘spread’ over bond rates of between 200 to 300 bps across global markets and capital will continue to be attracted to the sector,” said Iryna Pylypchuk, Director, Global Research, CBRE. “The influx of new sources of capital targeting real estate as part of long-term liability-matching allocation strategies is helping to extend the investment cycle. At the same time, this pushes the ‘old capital’ into niche sectors, prompting expansion of the investment universe.”

The recent economic slowdown in Asia has led to China, Singapore and South Korea dropping down in the top 20 market rankings during H1 2015. Canada was the only non-Asian market to experience a notable fall in the rankings, with its western regions relying heavily on oil for economic activity, weaker occupier fundamentals slowed investment activity.  Rapid uplifts in investment in Europe’s recovery markets Italy, Ireland and Spain meant significantly improved positions in the rankings.

Cross-border investors have grown in influence to become an important driver of CRE investment globally, particularly in the last 24 months, and are changing the shape of the market. The world’s leading destinations, in terms of global capital flows, is a balanced mix of cities across all main regions–London was the most targeted city by cross-border investors in H1 2015, followed by New York and Paris. This contrasts with the top destinations for overall investment where the bias is strongly on the U.S.–New York was the leading city overall, followed by London and Los Angeles.

At a regional level, the influence of global investors varies from as little as 10 per cent in the Americas, to almost 50 per cent of the market in EMEA. The largest contributor to these flows during H1 2015 was the U.S., accounting for a stand-out $25.4 billion of investment outside its home market. The next three largest sources were Canada ($8.5 billion), Germany ($7.1 billion) and China ($6.6 billion), with their combined volume still considerably less than the U.S.

“The influence of global capital is growing to the point that these investors are becoming the “market-maker” in setting the price in the most desired and liquid markets across the globe. Within this growing wave of cross-border capital, there are elements of old and new,” said Chris Ludeman, Global President, Capital Markets, CBRE.

“A recurrent wave of U.S. equity funds continues to explore global opportunities in search of higher returns off the back of strong buying power of the U.S. dollar. German capital is searching for steady investments outside their home market–a notable shift in strategy post-GFC. Despite low oil prices, Middle Eastern buyers remain active, with the investor base growing and strategies targeted at greater geographic and sector diversification.

“There are numerous new sources of capital that have emerged only recently. With its commodity driven economy slowing, Canadian investors have sought opportunities abroad. The lower oil price has triggered and accelerated global deployment of capital from the Middle East’s non-institutional investors, particularly private high net worth. However, of all the new sources, Asia has been the most captivating due to the size, speed and potential long-term impact brought by the recent regulatory changes; this has allowed many of the local pensions funds and insurance companies to invest globally for the first time,” Mr. Ludeman added.

Original article: http://www.worldpropertyjournal.com/real-estate-news/united-states/miami-real-estate-news


read more

Commercial Real Estate News Roundup For Sept. 8, 2015

Commercial Real Estate News

Commercial Real Estate News

 

Big mergers, global buyers desire one-stop-shopping, industrial pricing may be at its peak, Wal-Mart shrinking, Apple’s fresh look, booming multi-family market — and more. It’s all here at the Commercial Real Estate National News Roundup for September 8, 2015.

General
Cushman & Wakefield Takes Historic Leap Forward, Commercial Property Executive, September 3, 2015 – Consolidation continues to shake up the CRE industry.
The Cloud’s Impact on CRE is Clear, GlobeSt.com, September 1, 2015 – Construction pipeline for data centers surges.
How the Global Economy is Affecting US CRE, GlobeSt.com, August 31, 2015 – Lower oil prices coupled with few jobs overseas cause investors to continue to be bullish on the US property market.

Office
Top Tech Cities in U.S. Commanding Hefty Office Rent Premiums, World Property Journal, September 2, 2015 – Opportunities for CRE investment trending way up in markets that command up to an 87% rental premium.
It’s Not About Where You Do the Work, GlobeSt.com, September 2, 2015 – Productivity trumps location for many in today’s office market.
The Most Dominant Office Market Trend, GlobeSt.com, August 31, 2015 – Tenants are expanding and bringing out of state divisions to the Tampa office market.

Industrial
Hot Baltimore-Washington Corridor Industrial Market Sees Another Sale, Commercial Property Executive, September 4, 2015 – Investors rush to buy property in industrial “promised land”.
NY Investor Grabs East Baltimore Industrial Site, Commercial Property Executive, September 2, 2015 – Existing tenants make acquisition very attractive.
Industrial Pricing Heads Toward Peak, GlobeSt.com, September 1, 2015 – Sales activity for industrial properties approaches 2007 high.

Retail
Can Wal-Mart Support 5,200 Stores?, 24/7 Wall St., September 4, 2015 – Will Wal-Mart’s empire expand or decrease in 2016?
Apple Stores are About to Change in this Huge Way, Fortune, September 2, 2015 – Apple stores to get a fresh new look soon.
Retail Development Picks Up in Louisville, GlobeSt.com, September 2, 2015 – National retailers flock to the I-65 corridor in Louisville’s metro area.

Multifamily

High Walk Score Makes MF Stand Out, GlobeSt.com, September 4, 2015 – Value-added properties that offer high walkability and family fun are very desirable in suburban areas.
The Latest on Rent Growth, Commercial Property Executive, September 1, 2015 – Multi-family rent growth holding strong, but volatile international stock market may trigger a cooling soon.
Steady Hiring Favors Multifamily, GlobeSt.com, August 31, 2015 – Consumer confidence and a record number of 20 somethings in the market drive multifamily income opportunities.

 

This article was taken from http://blog.commercialsource.com/ Original link: http://blog.commercialsource.com/commercial-real-estate-news-roundup-for-sept-8-2015/


read more

Brian Fielding Shares Expert Tips for New Commercial Real Estate Investors

Fielding Investments

Fielding Investments

More investors are starting to think about the benefits of purchasing commercial real estate according to Brian Fielding of Fielding investments. The commercial market is currently seeing a number of positive trends and things continue to look up as the economy improves. Many new investors are trying their hand at commercial real estate, and Mr. Fielding wants to ensure that they have the proper information and resources. For that reason, he offers advice that individuals must keep in mind when exploring commercial properties.

  1. Liability: When looking at a property for purchase, investors should be aware of any potential hazards that may be on or associated with the property before they decide to buy. This, Brian Fielding shares, is because the liability may be attached not to the current owner, but instead to the property itself. When the property is transferred, so may be the responsibility, even if the hazard was caused by the previous owner. Once the real estate has been bought, the new titleholder may be responsible for any problems with the property, any harm the property is causing to the environment, or any zoning laws that the property is breaking. For these reasons, it is essential that all hazards and liabilities are out in the open and considered before a purchase is made.
  2. Knowledgeable negotiation: There are innumerable considerations that need to be analyzed when establishing the value of any asset. Brian Fielding reminds investorsthat knowing all the details of a property, including its downfalls, requires significant “due diligence.” Unless the investor has great experience and knows how and where to look for defects and potential problems, they should think about retaining an experienced consultant with extensive experience in like transactions.
  3. Available Professionals: There are many experts whose skills can be utilized by those who are buying commercial real estate. These include specialists such as commercial real estate lawyers, investment authorities like Brian Fielding, contractors, accountants, and a number of others. Careful investors will consult these experts throughout the acquisition process. This will help the buyer along the road to choosing and purchasing the commercial real estate property that is most fitting for their purposes.

When investors have questions about commercial real estate, they can depend on Brian Fielding, one of the most knowledgeable minds in the industry. Mr. Fielding has years of experience in the market and can answer the burning questions about the ins and outs of the industry. To learn more about the commercial real estate market with Brian Fielding visitwww.brianfielding.com.


read more

Steps for Choosing the Right Property Investment from Brian Fielding

Large Banner On A Building Advertising Vacancy

Brian Fielding believes that commercial real estate can always be a wise field for those who want to make investments that will offer them a future return. However, just like with any business, being successful in commercial real estate means being knowledgeable about the market and choosing the right investments. Here, commercial real estate expert Brian Fielding discusses things that buyers should consider about a property before they make a purchase.

  1. Where it is located: Location always matters. It is one of the biggest factors in determining the value of the property as well as its future potential. It is essential that an investor looks into the surrounding neighborhoods and businesses around the property that they are interested in to determine who lives there, and which kinds of businesses thrive in the area. This can show them if the building has potential for its surrounding community and whether it will be impacted by the local economy.
  2. Property uses: Some investors purchase a property for a specific purchase. Brian Fielding reminds investors that not all properties can be used for any purpose, and many have restrictions on how they can be used. This may determine if the property should be purchased as zoning laws may include some commercials uses but not others. Office spaces, for example, may not be rented as retail spaces.
  3. Condition: The condition of a property can cause additional costs to the initial investment on the property. Brian Fielding says that when investors are not careful they may miss repairs and other problems with the property that may also decrease their profit by delaying the time in which they can start renting the property. Being cautious about a property can prevent these problems from happening and can help an investor better determine the value of the property that they are purchasing.

read more

2015 Commercial Real Estate Projections Shared by Brian Fielding

Real Estate Brian Fielding

For those looking to make a wise investment in the New Year, Brian Fielding always believes that commercial real estate is an excellent choice for a purchase that ensures an opportunity for a great return on the investment. With just days until 2015 begins, it is important for investors to understand how the market will look in the next year, and so far, Brian Fielding reveals that the New Year looks like it will be one with a number of stunning prospects.

One of the advantages that the commercial real estate market is seeing at the end of 2014 is the continuing recession recovery. The growing job market has allowed a number of businesses to recover financially, and this has allowed them to expand. These companies are acquiring more employees and are in need of larger spaces. Additionally, at home businesses are reaching a point where they need a commercial space to conduct their business. Brian Fielding reveals that the result is office and retail spaces are starting to see a higher demand.

Brian Fielding shares that those who own these spaces and rent them should see the demand result in a decrease of space vacancies and an increase in rent prices as a result. Office spaces, retail spaces, and industrial properties are all seeing these trends, especially in areas that are in high demand. The demand is so great that there are additionally a number of new industrial building projects that will be starting in the New Year. Because of all these promising trends in the market, Brian Fielding knows that now is the perfect time to consider truly investing in commercial real estate and taking advantage of the strong market. Commercial real estate has a number of advantages over other choices such as residential real estate purchases, and with this expert knowledge from Brian Fielding, you can make wise investment choices and reap the rewards of a commercial real estate purchase.


read more