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Bisnow state of philadelphia liberty property trust jim mazzarelli industrial market hyatt bellevue
We have more coverage from last week's State of the Market event. An interesting tidbit is Liberty Property Trust's Jim Mazzarelli's views on the industrial market. Despite high unemployment, he's says consumers are still spending. Especially if they have a job. The evidence is playing out in the industrial market. “If you go back 18 months ago, rents were $2.75/SF with 15% vacancy,” he says. Now? Rents are $4.50/SF with a precipitous drop in vacancies. Jim was part of our second panel focused on CRE owners in Philly, held at the Hyatt at Bellevue. “It's not flatscreen TVs, but it's food. People are buying stuff.” (Just wait for the day we can reach in and eat what's on our TV screen.)
Brandywine george hasenecz pro forma rents uncertainty risk multifamily flight quality state of philadelphia hyatt bellevue
Brandywine's George Hasenecz says the return of “uncertainty” in the past 60 days has made projecting pro forma rents on potential acquisitions and new projects difficult. “If you're looking to buy, you're going to go back over the numbers” until you're comfy with the risk, George says. Overall, George says investors have taken a “flight to quality” in CRE portfolios, and those with land holdings are now examining other potential developments, including multifamily or mixed-use. “We're constantly looking at our office portfolio.”
Related Topics: Jim Mazzarelli