Stable economic growth, paired with strengthened consumer confidence, has provided a steady upturn in all three commercial real estate sectors over the course of 2014. With the economic recovery expected to gain pace in 2015, we maintain our bullish view for the country's commercial real estate market.
With a focus on the cities of New York, Los Angeles, Chicago, Dallas and Philadelphia, this report covers the rental market performance in terms of rates and yields and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of the economy on a market that can dictate regional performance. In this respect, we generally expect the stable growth of 2014 to continue going into 2015 with moderate-to-strong growth in all sectors. Reasons for this positive outlook are solid growth indicators of the wider US economy, rising employment rates, as well as growing consumer confidence and spending levels; the expected 2.1% GDP growth for 2014 is forecasted to accelerate to 2.6% in 2015.
The office segment has seen strong growth in demand largely due to rising employment levels in the professional and business services segments as well as in law. While the retail sector continues to suffer from the rise in e-commerce, dispersing growth towards the logistics segment of the industrial sector, growing consumer spending nonetheless furthers growth in retail space across all cities, with stable to decreasing vacancy rates. US retail sales have grown consistently throughout 2014 on a month-on-month basis and, despite a minor stall in July, have returned to solid growth by the end of Q3 2014. The industrial sector has experienced vast growth in 2014, lowering vacancy rates to critical levels of 7.4%. With little quality industrial property space available, and considering further expected demand growth going into 2015, this trend is likely to continue. This also bears considerable potential for the...
The United States Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's United States Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in United States.
- Benchmark BMI's independent real estate industry forecasts for United States to test other views - a key input for successful budgeting and strategic business planning in the American real estate market.
- Target business opportunities and risks in United States through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.
Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.
Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.
Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)
Business Environment Rankings
BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.