Industrial stock clustered around highway ramps in major logistics hubs

Jun 21, 2023, 08:41 AM by Matt Mowell

It is widely believed that Industrial real estate clusters along highways. We analyzed metro Atlanta, an important logistics hub serviced by multiple interstates and state highways, to test this hypothesis.
REIT valuations signal lower private asset values ahead

Jun 13, 2023, 14:37 PM by Matt Mowell

Transaction activity is down due to wide bid-ask spreads. Meanwhile, REIT implied cap rates have increased sharply, particularly for office space, as manifested in significant discounts to NAV. But a few distressed office asset sales suggest that REITs are on to something, and private-market devaluation will catch up soon.
The Office Sector Debt-Funding Gap is Likely to Increase

Jun 8, 2023, 13:50 PM by Michael Leahy

Between 2023-2025, CBRE Econometric Advisors (CBRE EA) forecasts office owners will face a financing gap of $72.7 billion (26.4% of the lending volume originated in 2018-2020). This will likely lead to distress for some property investors and force others to inject more cash into their properties.
The 1990s offer solace from today’s office pains

Jun 7, 2023, 09:15 AM by Matt Mowell

The office market has been on its back before. Past experience tells us the preconditions to recovery include a throttling back of the new supply pipeline and painful distress sales that provide necessary price signals.
In-migration resumes in some urban centers

Jun 1, 2023, 14:33 PM by Matt Mowell

Migration—both domestic and international—is the most important factor influencing population change within American communities. New Census Bureau data shows how migration has impacted population change in U.S. counties.
Don't fret the uptick in industrial availability just yet

May 24, 2023, 11:33 AM by Matt Mowell

The industrial sector saw a 70-basis-point increase in availability in the first quarter. Nevertheless, availability should remain below historic norms for the foreseeable future, a fact that distinguishes industrial from most other property types.
Southern California’s outlier markets may provide industrial investment opportunity

May 11, 2023, 09:32 AM by Matt Mowell

Is every real estate deal unique? Or does each deal provide a point in a broader spatial pattern? To answer these questions, CBRE Econometric Advisors (CBRE EA) mapped all the industrial property sales in Southern California over the past two years and then applied geospatial analytics to identify trading patterns.
Performance of REITs and Private CRE is Best Correlated Over Longer Holding Periods

May 10, 2023, 11:20 AM by Matt Mowell

Many multi-asset investors use real estate investment trusts (REITs) to gain or supplement their exposure to property without purchasing the underlying asset. However, over short time-horizons REITs can often mirror the volatility of the broader securities market rather than the steadier, income-driven performance of private equity real estate.
Fundamentals Still Matter

May 2, 2023, 13:55 PM by Matt Mowell

Commercial real estate (CRE) is facing cyclical headwinds. Asset values have eroded this year due to the impact of rising interest rates and cap rates on equity and debt availability and underwriting. The stark interest rate risk has overshadowed CRE fundamentals for the time being. But we expect values will begin stabilizing later this year.

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