by Jodi Summers
Investors listen up! 
Single-tenant Industrial NNNs are proving to have a strong return. Real Capital Analytics (RCA) proclaims, ?In the 12 months through the first quarter of 2011, single-tenant industrial properties have been trading at higher spreads to 10-year U.S. Treasuries.?
Single-tenant industrial real estate properties traded at an average cap rate of 8.3%, compared with 8.1% for multi-tenant properties, affirms RCA.
Happily, Los Angeles is the strongest market in the country with a vacancy rate of 5.5%, followed by Orange County @ 6.2%, then Miami at 8.6%. Exchange, sell, buy, lease > opportunity abounds.
?Investors have been significantly increasing their direct investments in commercial real estate this year based on the expectation of improving space market fundamentals, and low yields in alternative investments,? notes Chris Macke, a senior real estate strategist for CoStar, a commercial real estate information company.
Nationwide, US commercial property prices rose 0.9 per cent in June > this is the second straight monthly gain, confirms market-savvy Moody?s Investors Service. The increase represents a ?firming up? of the market bottom as investors moved beyond trophy properties and major US coastal cities.
General owner/user property prices rose 1.9%, compared to a 3.3% decline a year earlier. The pricing index on available investment grade real estate rose 3.1% month over month, compared to a 6.8% rise a year ago.
2010 was also a good year for sellers of single-tenant industrial properties. On average, these assets achieved 91% of their asking price, a 2% gain over 2009. Sale-leasebacks accounted for about 20% of the overall single-tenant marketplace. Some CFOs are seeking to leverage low interest rates and lock in low lease rates by selling their owned real estate and leasing it back from the buyer.
The future is bright.
?The recent volatility in the stock markets may cause increased interest in direct real estate investments as a safe haven, given the tangible nature of commercial real estate, and even lower alternative asset yields,? states CoStar?s Macke.
In conclusion > The Los Angeles Industrial Real Estate Market is strong and will continue to stay strong.
We?re here to help you with your commercial and investment property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby?s International Realty ? jodi@jodisummers.com or 310.392.1211, and let us move forward together.
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http://gulfnews.com/business/property/international/us-commercial-property-prices-rise-in-june-1.857170
http://www.costar.com/News/Article/Rising-Prices-Signal-Gains-In-Commercial-Real-Estate-Demand-at-Mid-Year-Before-Latest-Market-Jolts/131216?ref=/News/Article/Rising-Prices-Signal-Gains-In-Commercial-Real-Estate-Demand-at-Mid-Year-Before-Latest-Market-Jol
http://nreionline.com/finance/news/investors_single_tenant_triple_net_0810/
http://theplanetrealty.com/wp-content/plugins/rss-poster/cache/7face_qqowsgvlhe20tu4zsjz1aw.gif
http://www.optimalspaces.com/images/new-york-real-estate-statistics-and-graphs/New-York-Rent-Industrial-Space-201108.jpg
http://atxre.com/wp-content/uploads/2011/08/q2-industrial-vacancy.jpg
http://www.socalindustrialrealestateblog.com/wp-content/uploads/2011/07/Industrial-Property-4-Sale-3Q-2011.png
http://www.chicagorealestatedaily.com/apps/pbcsi.dll/storyimage/CG/20110808/CRED02/110809871/AR/AR-110809871.jpg&maxw=368&q=100
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Source: http://www.socalindustrialrealestateblog.com/?p=756
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