Read the latest Colliers Analysis by Andrea Cross, Colliers National Office Research Manager. This research shows that ICEE (Intellectual Capital, Energy and Education) markets are outperforming FIRE (Finance, Insurance and Real Estate) markets.
Monthly Archives: December 2013
Liberty Property Trust sold about 2.1MSF of its office and flex buildings (32 in all on JAX’ Southside) and some 115 acres of undeveloped land to Greenfield Partners, a CT-based investor that also bought assets in Minnesota and Pennsylvania. Roger Bull of The Florida Times-Union has the story.
The iconic Aetna Building on the Southbank has sold for $55.5M to GEM Realty and IP Capital Partners from Boca Raton. The 20-story building has about 600k SF and was built in the mid-1950s. Steve Patterson of The Florida Times-Union has the announcement.
From the Charlotte Business Journal, below are the Top 10 Predictions for 2014
- The S&P 500 Index to rise to 2000 and the MSCI All-Country World Index to reach 444 by year-end 2014, with price return of approximately 11% and earnings growth of 7%.
- 2. U.S. and global economic GDP growth to accelerate in 2014, to 2.6% and 3.5%, respectively. The U.S. economy is expected to expand in the second half of the year at a 3% rate, driven by the end of fiscal austerity and pent-up demand for capital goods
- 3. Emerging markets should rebound and prove resilient in 2014, with modest growth recovery and rising productivity. Emerging market GDP is expected to rise 4.9%. A couple exits a Yum! Brands Inc. KFC outlet in Beijing, China.
- U.S. interest rates will move higher, with 10-year Treasury yields expected to reach 3.75 percent. Janet Yellen, vice chairman of the U.S. Federal Reserve, is U.S. President Barack Obama’s nominee as chairman of the Federal Reserve.
- Fixed income will face a difficult year as tightening spreads and rising rates could make total returns challenging for fixed income investors. BofA says corporate bonds are favored over government bonds. U.S. high-yield bonds may offer the best potential, with a total return of 4% to 5%. Europe should lead the way among investment-grade bonds with a return of up to 2%, followed by the U.S. at 1.5%.
- Global inflation rate to remain stable at close to 3%.
- 7. The strengthening of the U.S. economy is expected to boost real estate values by another 5% in 2014.
- Global commodities prices will be contained in 2014 by oversupply in key sectors, especially global oil and grain, a strong U.S. dollar and modest global economic growth. Gold values are expected to drop to $1,250 an ounce in the first quarter, before rebounding to normal levels later in the year. Other metals not in surplus, including zinc, platinum and industrial metals could outperform.
- A global rotational shift will continue, displayed by the outperforming of real estate over commodities, stocks over bonds, developed markets over emerging markets, small cap over large cap, high yield over investment grade and cyclical over defensives.
- Institutional investors, including insurers, sovereign wealth funds, central banks and even U.S. pension funds, are expected to take part in a “reverse rotation,” selling stocks and buying bonds.
Good news! The city council approved the release of about $3M for the 220 Riverside Project, contrary to earlier discouraging articles suggesting the city would not release the funds, as promised, to NAI Hallmark to finish Unity Plaza, a component of the 220 Riverside Project. This development will be very good for the area and may spark other projects nearby.
Haskell Co. is working with Sleiman Enterprises, the owner of the Jacksonville Landing, on redevelopment plans for the property. This past Monday, the public was invited to weigh in on the conversation, at a forum organized by the Downtown Investment Authority. There was a large turnout with people in support of The Landing redevelopment. One thing that is clear, is that the Landing should play a large part in Downtown revitalization.
According to the Jacksonville Business Journal…”The project is estimated to cost about $21 million, $19 million of which has already been raised. The new $21 million Winston Family YMCA will be three stories, glass fronted and feature 71,054 square feet of space overlooking the St. Johns River. The old building will remain open until construction of the new Y is completed, upon which it will be demolished and turned into a parking surface.”
Renderings of the long anticipated East San Marco Project were unveiled the other day. The project will include about 240 apartments, 35 townhouses, 14,000 square feet retail space and a 30,000 Publix supermarket, which will be the grocer’s urban store model.