Profimex Market Review Update – December 27, 2020
US Industrial Rents Up Nearly 6% This Year
While the global pandemic had severe impacts on certain property types such as Hotels and Malls, it did favor other real estate sectors. According to the recent Winter 2020 US industrial and logistics report, published by Colliers International, US industrial rental rates increased by as much as 5.6% since last year. The trend towards e-commerce, accelerated by the pandemic, was only one reason for the increased rates. According to Colliers, another reason is the significant rental growth of modern distribution facilities, including 75 mega-facilities of more than 1 million square feet each.
Seattle $669M Office Sale Shows Cities’ Continued Allure
According to Skanska Commercial Development USA, the largest single-property transaction since the beginning of the pandemic had just closed. A south Korean asset manager purchased a 95% stake in a 38-story office tower and retail village for $669 million. Murphy McCullough, executive vice president and general manager, Skanska USA Commercial Development, says that “COVID accelerated some trends already in place and there was a movement for specific jobs to the suburbs, but cities will retain a certain gravitas after the pandemic ceases.”