CBRE's Investor Intentions Survey 2015

CBRE has released the results from the CBRE North America 2015 Investor Intentions Survey which reflects a confident market with half of the survey respondents indicating that they expect their purchasing activity to increase in 2015, and of those one-third said they plan to raise investment volumes by 20% or more. Investors identified increased competition and the challenge of finding appropriately priced assets as the greatest—and only—obstacle to investment in 2015.

"The strength of the economy creating real estate demand, improved property fundamentals and measured supply gains make North America extremely attractive, with investors maintaining a hungry appetite for real estate assets. As was the case in 2014, a majority of investors intend to increase their property acquisitions in 2015. A natural consequence of this appetite for real estate assets is the competitive investment environment," said Chris Ludeman, Global President, CBRE Capital Markets.

Investors remain interested primarily in industrial, office and multifamily product, with industrial leading the charge. Industrial is the preferred property type for investors in 2015, with one-third of survey respondents selecting either of the two industrial categories as their preferred sector.

To read the full survey findings, click here. For more news and information visit Blumberg Partners.

Energy Revolution Creates Opportunities in CRE

A new report from CBRE titled Energy Revolution Impact on Americas Commercial Real Estate explores the latest unconventional energy advancements and their impact on the CRE market in North America. According to the report, the billions of dollars investments toward energy exploration is dramatically impacting economic and commercial real estate activity, creating opportunities for both investors and developers. The study was authored by Dallas-based Sara Rutledge, and Denver-based Jessica Ostermick. An excerpt from the summary follows:

Operations markets (locations that house the headquarters and/or regional operations centers of office-based energy professionals) have experienced tightening office market fundamentals over the past few years. Caracas and Houston, which both have seen 500-basis-point drops in vacancy since 2010, have led this trend.

Exploration activity applies numerous pressures to commercial real estate markets in regions where resources are extracted and/or processed, oftentimes creating a marked imbalance between demand and supply. This dynamic has resulted in high lease rates across all property types, significant development activity and above average investment returns, which is attracting growing interest from the real estate investment and development community.

The report notes that the rise in unconventional oil and gas development has created a shift in the geography of production, a change that has led the global supply to be increasingly driven by the Americas region – a trend that is expected to last through 2040. The movement, according to the report, suggests that the investment horizon may sustain over several decades and not mirror the boom and bust cycle of past conventional plays.

For more news and information visit Blumberg Capital Partners.