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| Mike Davis |
TAMPA, FL, Feb. 14, 2017 —
Cushman & Wakefield Executive Managing Director Mike Davis took time to reflect on current trends in commercial
real estate and a banner year for his Capital Markets team and the firm.
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| Rick Brugge |
Last year, Davis and
fellow team members Senior Director Rick
Brugge and Senior Director Michael
Lerner, closed 33 transactions valued at more than $1.25 billion on nearly
9.0 million square feet of commercial property across the Southeast. According
to Davis, the incredibly active investment sales market was fueled by a number
of factors. These include:
· Historically low interest rates
· Excellent market fundamentals across the nation
· Investor concerns about the rapid rise in stock and
bond valuations
· Concerns about future inflation
· The increasing widespread acceptance of commercial
real estate as a viable investment vehicle
“While most sectors have
performed well, industrial is really the big story in the investment world,”
said Davis. “Today, a lot of money is flowing into industrial and the business
driver is e-commerce.”
“Our fundamentals are off
the chain,” added Davis. “We’ve had record absorption over the last three
years, unlike anything we’ve ever seen in the history of industrial real
estate.
"A significant portion of the industrial absorption over the last 36
months has been e-commerce-driven, as product moves off retail shelves and into
warehouse and distribution facilities.”
On the office side, Davis and
his team have witnessed solid fundamentals and measured growth.
 |
| Michael Lerner |
“The key driver in office
is the supply side, which is very constrained in most markets, and rents still
have to come up somewhere between 10 and 20 percent to justify new
construction,” explained Davis. “It is also extraordinarily difficult to get a
construction loan and to build an office building today.”
Going forward, Davis
believes the proposed policies of President Trump will help sustain capital
markets in the near- to mid-term.
“Donald Trump is a real
estate guy, so one would think he should be good for commercial real estate,”
said Davis. “He’s also talking about stimulating the economy through massive
infrastructure spending, and that should drive GDP growth.
"Those two things should
be very good for commercial real estate. The risk, of course, is that interest
rate rises don’t outstrip anticipated GDP growth.”
“It’s been an
extraordinarily robust time for commercial real estate,” said Davis. “In the
investment space, we feel optimistic, and most of the clients we talk to feel
very good about the short- and medium-term going forward.”
For a complete copy of the company’s news release,
please contact:
David A. Meyer
Owner
Meyer Media
+ 1 407 489 7488
or follow @CushWake on Twitter
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