Commercial Real Estate News Brief: July 2013

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania. 

Hospitable Hotel Industry Attractive to Investors

Source: JLL, Hotel Investor Sentiment Survey

Source: JLL, Hotel Investor Sentiment Survey

The hotel market is beginning to look like a good place to stay. The New York Times would agree:

“With business travelers taking to the road again, the hotel industry is emerging from a slump that began a year before the terrorist attacks of September 2001.

 JLL released the Hotel Investor Sentiment Survey in July, which also showed consistent growth in the hotel sector. JLL experts accredited the growth to improving economic conditions, as well as positive employment levels. The survey also found that more than half are chasing acquisitions. 

Industrial Market Activity Sets the Stage for Speculative Construction  

Industrial market activity is looking up. CoStar Group researchers reported a significant increase in warehouse rent growth during Q2­–”year-over-year rent gains of 5% or more in the second quarter..” 

This trend isn’t forecasted to last exponentially. Ongoing resistance to new industrial construction has caused the spike in rent growth. However, CoStar predicts that developers will begin to correct the imbalance between supply and demand in coming years.

The increase in activity has spilled over into the Midwest market. Columbus, a Midwest industrial hotspot, is even running low on available inventory, according to a recent article in Columbus Business First. This may prompt future construction. Also in July, the Dayton Business Journal named Ohio “no. 6 top manufacturing state.”

U.S. Energy Market Drives Interest in Local Markets (Including Pittsburgh)   

The national energy industry is thriving; positioning the U.S. as an international leader in natural gas and shale oil production. JLL recently released a study spotlighting the Energy Outlook for 2013. It is evident that the industry is having a widespread impact on economic performance−driving growth in many areas, including job and income growth. In fact, according to CoStar Group:

While energy production is the direct growth driver, much of the commercial real estate demand is coming from affiliated industries and thus driving growth in office, retail, industrial and multifamily demand.” 

JLL pinpointed 5 of the hottest energy markets currently experiencing subsequent growth and demand. These include Houston, Dallas / Fort Worth, Denver, Pittsburgh and Philadelphia.

News Wrap Up In Our Region 






  • In July, the Pittsburgh Business Times announced that the 37-story, K&L Gates Center is partially owned by international investor Independencia Asset Management.
  • Industrial Safety Technologies will purchase the “Oldham fixed-point gas detection business” from Industrial Scientific Corp.

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