Thank you to SIOR leaders for supporting the relationship with MIT Center of Real Estate. I attended their 2021 World Real Estate Forum virtually last week and wanted to touch on a few things relevant to SIORs.
Continue reading “MIT World Real Estate Forum – 2021”
There has been a resurgence of demand from Corporate Real Estate. Once, the most important sector of the industrial real estate business, corporate influence has waned in comparison to investor/developers. The fade of corporates is a long-term trend starting when manufacturing moved off shore in the 1980s. Since the Great Financial Crisis, Capital’s influence in industrial real estate has only become more pronounced as investors search for yield. Tenants are the crucial for cash flow, but where it counts the most, in the ownership rankings and at the negotiation table, Capital is the market leader.
Continue reading “Return to Corporate Real Estate”
Week of June 25 – Need For Space
The industrial market during the Covid-19 period, now edging back to normality, is a lesson on disruption. The most visible example are container ships backed into the sea and unable to unload goods because there is not enough dock space available at the ports. It is the same at warehouses and container yards: too many products and not enough space.
Continue reading “Commentary on Industrial Markets”
As 2020 comes to an end, Industrial Buildings continue to be good investments. With annual appreciation at 6% and current cap rates at 5%, Buyers are getting 11% annual returns and greater on an “all-cash” basis. These calculations reflect market conditions and not based on finding a “good deal”. With interest rates at 3% or lower, there is strong leverage boosting cash-on-cash returns to 10% with conservative financing. Levered returns increase to 15% (cash flow + appreciation). If you can find property for sale, not always that simple, conditions are very supportive.
Twice a year I meet with my SIOR colleagues from around the world to make deals and compare markets. This was the first time we held the meeting virtually. While not the same as in-person, I was still able to connect with many of my peers and have valuable learning time.
Continue reading “CREate 360 – Fall Conference”
Through my attendance at MIT’s World Real Estate Forum, I was introduced to new research that is collected in the book entitled, Toward Urban Economic Vibrancy, Patterns and Practice in Asia’s New Cities, Edited by Siqi Zheng and Zhengzhen Tan. The several papers that make up the book include sections on finance, structure, Public Private Partnership, design, success measurements, industrial policy, location, and case studies.
Continue reading “New Asian Cities”
This year’s Forum was held virtually with presenters and participants from Asia, Europe, and the United States. There were a wide range of future-focused topics that came at the right time. The Forum opened many new doors for exploration and research. My favorite sessions addressed ESG, Wellness, New Cities, Pricing Metrics, and Virtual Worlds.
Continue reading “What I Learned From Attending MIT’s World Real Estate Forum 2020”
In these times of Stay-at-Home and Social Distancing, posting 360 videos is one way to reduce going out and meeting in person. It is the exact opposite of what I learned in sales training, but viewing space virtually is right for the moment.