Jan 9, 2024
Miami Worldcenter, a $6 billion, 27-acre mixed-use development, has faced challenges over the years, including delays due to the Great Recession and the impact of the COVID-19 pandemic. The project, the second-largest of its kind in the United States, aims to reshape Miami’s urban core by focusing on pedestrian-friendly spaces and creating a walkable neighborhood. Despite setbacks, the development is nearing completion, with over 90% of its 300,000 square feet of retail space leased. The project includes residential units, offices, public green areas, and a variety of amenities, contributing to Miami’s status as a growing global city.
Jan 7, 2024
U.S. commercial real estate sales prices have experienced a significant decline as the number of transactions hit near-pandemic lows, according to a CoStar Group analysis for November. The findings indicate that November’s transaction volume was the second-lowest since the depths of the pandemic lockdowns, with a 38.6% drop in sales, amounting to a $3.6 billion reduction from the prior month. The value-weighted U.S. Composite Index, reflecting larger property sales common in major cities, fell by 1.1% in November, marking the third consecutive monthly decline. Investment-grade property fundamentals have worsened in the past 12 months, with a negative contribution and a notable increase in the completion of new space.
Jan 6, 2024
In November, U.S. companies announced a total of 45,510 job cuts, marking a 24% increase from the previous month. Despite being 41% lower than the same period the previous year, the year-to-date job cuts in 2023 were more than double the figure for the first 11 months of 2022, totaling 686,860. The technology industry led in announced job cuts for the year, with 163,562, including 5,049 in November. Additionally, the House Energy and Commerce Committee advanced a bill to address the shortage of electrical distribution transformers, while jobless claims increased by 1,000 to 220,000 for the week ending December 2, indicating a tightening job market.
Dec 26, 2023
Holiday gift returns have become a significant driver for the third-party logistics industry, with these providers representing nearly 31% of all industrial leases of 100,000 square feet or more in the first three quarters of the year. In the past four years, third-party logistics providers, many of which provide reverse logistics services, have leased more than 100 million square feet of bulk warehouse space annually, according to CBRE.
The growth in e-commerce, expected to account for over 30% of sales by 2030, contributes to the increasing demand for reverse logistics services and the associated real estate. Additionally, some retailers are adopting strategies such as charging return fees and implementing shorter return windows to mitigate excessive returns, with technology and strategic approaches seen as opportunities to turn returns into a revenue-generating aspect of retail.
Dec 19, 2023
Multifamily rent growth experienced a significant acceleration in 2021 and early 2022, leading to concerns about affordability and calls for rent control. However, since late 2022, the growth has slowed, and in some major markets, rents have even declined. On a national level, the average asking multifamily rent is only $65 higher than it would have been with pre-pandemic growth rates. Markets in Florida, particularly Palm Beach, show the largest positive differences, with rents significantly higher than projected. In contrast, several large coastal California markets, including San Francisco, San Jose, and East Bay, have lower rents than anticipated. The variations are more pronounced between different property types, with four- and five-star properties experiencing the greatest absolute differences. Miami and Orange County have notably higher rents for high-end properties, while San Francisco’s most expensive units are cheaper. Lower-priced one- and two-star properties generally have marginal increases, with some renter households paying slightly less than anticipated in a few markets. Bay Area markets stand out for lower rents in one- and two-star properties compared to pre-pandemic projections, while Palm Beach has higher rents in this category.
