CBRE Global Investors just can’t get enough of Sunnyvale.
Five months ago, I wrote about the investment manager scooping up about a half million square feet in that city’s Moffett Park submarket, in what may or may not have been a stealthy land assemblage forGoogle Inc.
And since then? Global Investors has been very busy indeed.
By my count, the Los Angeles based firm has now acquired, or will soon close, on roughly triple that amount of space — at least 1.5 million square feet in upwards of 30 buildings. The total cost of these deals is now at least $425 million, according to a rough tally of title and tax records, as well as estimates by market observers. (My numbers may be off because I was not able to confirm every property price, and I may have missed some.)
Most of these buildings are older, low-density R&D or industrial-type product that industry observers consider ripe for redevelopment. The Moffett Park submarket contains enough office capacity for about 1.33 million additional square feet of space under Sunnyvale's current city planning guidelines.
"A lot of this is probably driven by office development as opposed to industrial investment," said Ben Thypin, director of market analysis for Real Capital Analytics, a New York-based research firm. "They see the office market is hot, so whether it's Google or CB or other investors, they're trying to gather up as much convertible space or buildable land in a particularly good office market."
Read More: http://www.bizjournals.com/sanjose/news/2014/08/25/update-cbre-global-investors-deals-in-sunnyvale.html
With commercial market data now more readily available than ever, a broker can no longer bank on being the first person (or the only person) with information. Enter the era of the market report.
“Information used to be one of a broker’s main tools,” said Peter Von Der Ahe, a vice president with Marcus & Millichap. “Now part of the service a broker provides” is deciphering the onslaught of data.
Along those lines, in the past two years, commercial brokerages — including Colliers International, Avison Young, Massey Knakal and Cassidy Turley — have all begun hosting quarterly breakfasts to tout their data.
. . .
What’s more, despite all of these new reports, there are still major holes when it comes to key data points.
For example, “a report that needs to exist is an industrial report for the outer boroughs,” said Ben Thypin, director of market analysis at Real Capital Analytics. However, the dominant industrial firms often sell buildings through word of mouth and may not need the publicity a report provides, he said.
Read More: http://therealdeal.com/issues_articles/the-market-report-era/
“Industrial is a steady performer and isn’t correlated to other sectors,” said Ben Thypin, director of market analysis for New York-based Real Capital. “It didn’t get hot during the boom, and didn’t drop much during the crash.”
Read More: http://www.bloomberg.com/news/2011-06-03/prologis-to-double-asia-property-after-completing-biggest-u-s-reit-merger.html
The deal is rocket fuel for South Florida’s sputtering commercial sales market, helping bolster sales volume last year by 169 percent, to $2.6 billion, according to data from Real Capital Analytics. It also speaks to South Florida’s appeal to large institutional investors, according to Ben Thypin, senior market analyst at Real Capital Analytics.
“This is a sign of confidence in the South Florida market,” he said. “They are trying to take advantage of depressed pricing.”
Read more: http://www.bizjournals.com/southflorida/print-edition/2011/01/28/duke-closes-on-premier-properties.html
Ben Thypin, senior market analyst with Real Capital Analytics, said affordable financing might be more readily available these days, but not for existing owners whose existing debt is greater than the value of the property. He said the “alternative universe” lending philosophy during the real estate boom tied to pro forma has been replaced by due diligence based on a property’s current performance. Owners are still reeling from the impact of the downturn, working out decreased revenue from tenants closing shop, downsizing or moving out of existing industrial properties.
Thypin added that, despite the market improvement, lenders were providing no more than 70 percent loan to value.
“In terms of financing, having a quality borrower is important but today it’s more about the property,” he said. “If it’s a property that is performing amazingly, there are lenders.”
Thypin said Miami-Dade County’s industrial market is recovering faster than other parts of Florida because of institutional buyers value the barriers to entry including limited land for development.
“Stable properties are in high demand, and these properties are bidding up,” he said.
Read more: Palmetto deal highlights industrial rebound | South Florida Business Journal
"Most of the trouble in industrial is connected to economic factors such as lost tenants rather than actual debt" says New York City-based RCA's senior market analyst, Ben Thypin, who believes industrial will continue to stay on the low end in terms of distress.
Read More: http://distressedassetsinvestor.coverleaf.com/dai/201005?pg=13#pg13
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.