DealBook has an article up today about the office sublease market in NYC and the impact lower offering rates are having on space offered directly by building owners. Every time I read about NYC rents my head just spins. The numbers are just astronomical. According to the article, average asking rents for Class A office [...]
I wanted to make another quick point on CRE underwriting as it relates to vacancy. Some of the more “with it” sellers have begun allowing vacancy factors underwritten into their offering memorandums. What is often overlooked is the actual relation of the vacancy factor to operations. Often you will see a vacancy factor of 3% [...]
Another post from Calculated Risk showing office vacancy rates since 1991. We are not as bad as we were in 1991 but it looks like we are heading there. Graph below from CR.
Calculated risk put up a post yesterday about a topic that is near and dear to my heart: the Inland Empire commercial real estate market. In summary, the retail vacancy rate continues to rise in the Inland empire. I also thought it was humorous that the primary source for this data was CB Richard Ellis. [...]
The following are exerpts from a report just issued today by CreditSights‘ REIT analyst Craig Guttenplan titled “REIT 2Q Fundamentals: Protracted Pain Despite Gain.”
From the report (emphasis mine):
Commercial real estate (CRE) fundamentals for the core domestic property types continued their downward progression during the second quarter. Vacancy rates rose and market rents declined on a [...]
The following is a list of the top 5 most expensive retail rental markets in the world taken from CIRE.
INTERNATIONAL STATS
Top Five Most Expensive Retail Rents
1. New York
2. Hong Kong
3. Paris
4. Milan, Italy
5. Dublin, Ireland
Source: Cushman & Wakefield
