Commercial Real Estate Loans & Investment Sales

Industrial Commercial Real Estate Market Improved

BOSTON, /PRNewswire/ -- With strong absorption in the fourth quarter of 2004, resulting in a very strong showing for the entire year, the U.S. industrial market has improved considerably since year-end 2003, according to a soon to be released report by Colliers International, theglobal commercial real estate services firm.  More than 166.4 million square feet of industrial space was absorbed in 2004, compared to 56.8 million in 2003.

Strong demand for space resulted in rising rents, which jumped a surprising 4.2% during the fourth quarter.  "The abrupt change suggests that rents may be ready to turn higher in 2005 after remaining relatively flat for seven quarters," said Ross Moore, Vice President and Director of Research for Colliers USA.  "We comfortably exceeded our forecast of 150 million square feet of absorption, and the market has responded," he added.

The economy is showing signs of slowing marginally, but still has considerable momentum.  This will continue to translate into strong demand for warehouse space during 2005.  Very few markets are anticipating a slowdown in the first quarter, with most areas forecasting demand to stay at current levels or higher.

Strong absorption pushed the national vacancy rate down to 9.4% at the end of 2004, compared to 9.7% at the end of the third quarter 2004 and 10.2% at year end 2003.  Absorption during the fourth quarter of 2004 was 56.8 million square feet, the same amount that was absorbed during the entire year in 2003.

Construction of warehouse space continues to increase.  New construction in the fourth quarter totaled 35.2 million square feet, part of 120.0 million square feet delivered during the entire year.  This is a significant increase over 2003, when 95.0 million square feet of new construction was added to the market.

Colliers International is a global partnership of independently commercial real estate firms.  The organization's 8,683 employees span the world in 247 offices in 50 countries.  On a worldwide basis, Colliers manages 618.5 million square feet, and has revenue of nearly US $1 billion.  For more information about Colliers International, visit http://www.colliers.com.

SOURCE Colliers International

1031 Exchange

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About Pacific Security Capital

Pacific Security Capital provides commercial real estate loans, structured finance and advisory services for commercial real estate projects in the United States and most parts of Canada. As a leading commercial real estate investment bank, Pacific Security Capital offers superior service and performance in the structuring and origination of all your commercial real estate capital needs. Whether you're seeking commercial real estate loans, equity financing or advisory services, Pacific Security Capital's ability to serve as a direct lender, intermediary or a provider of professional services allows sponsors the broadest possible array of financing and advisory solutions. Pacific Security Capital provides funding and advisory services for both single asset and portfolio transactions.

Types of loan structures include: Permanent Debt; Construction Debt; Structured Financing; Bridge/Interim Financing; Equity Investments, and; Mezzanine Debt. 

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085