Michelle Matteson

Cap Rates

Year-over-year, the biggest cap rate growth was 19.0 basis points for industrial properties and the most significant decrease was in CBD office (-31.7 basis points).

CMBS Delinquencies

CMBS delinquencies by property type; $ in billions

National Vacancies

Forecasts show that net absorptions are expected to rise in the fourth quarter of 2017 in the West region and to decrease by approximately 20 percent in the South. Vacancy rates are expected to remain almost the same in the fourth quarter of this year.

Employment Picture

The second most significant change was in the professional and related occupations, with a 2.89 percent increase and 12.37 percent decline in unemployment.

Industrial Demand

Year-over-year, the only industry for which new orders decreased was transportation equipment, which fell by $2.8 billion, or 4.1 percent.

Development

Month-over-month, the amount of industrial under construction decreased by 20 percent, while the amount of office construction decreased by 10 percent.

Income Return vs. Capital Growth

Total returns in Northern European countries—such as Sweden, Norway and Denmark—increased in 2015 but then decreased in 2016.

NAI Global Weekly NL

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