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The impact of the Swine flu epidemic on the hotel sector may be too early to gauge, but a recent report by HVS Hospitality Services, authored by Ann Lloyd-Jones, looks back at the severe toll the SARS epidemic had on the Canadian, and more specifically Toronto’s, lodging market.Severe Acute Respiratory Syndrome first appeared in Asia in February 2003. While the virus surfaced in 37 countries, most cases were in Asia. The only country outside of Asia to report a significant volume was Canada, most of them concentrated in Greater Toronto.Canada’s lodging market was strongly affected by the SARS outbreak. As…

The past month has been remarkable. Words like meltdown, Armageddon and implosion have now been replaced by green shoots, upturn and recovery, with economists and pundits from all corners of the country claiming that the worst is behind us and echoing promises of expansion and growth as early as the next quarter. For office landlords and investors alike, this is a seductive argument and calls into question many of the bearish forecasts made just a few months ago.Certainly sentiment can have a dramatic effect on consumer behavior and investor confidence. But can this sentiment lead to tenants occupying more office…

Unlike its American counterparts, German-based auto company Volkswagen is going strong. But like American carmakers, its U.S. division, until recently, was headquartered in Detroit, a city beleaguered by the changes in consumer driving habits and the economic downturn. While some American companies have sought government bailouts to help them adapt to the changing marketplace, Volkswagen’s U.S. division bailed out of Detroit instead, moving its headquarters to a brand new building in suburban Washington, D.C., and aligning itself more closely with its U.S. customer base.“We still have significant operations in Detroit, including several hundred people involved with technical activities, finance, and…

Over the past 50 years, U.S. consumption patterns have changed considerably. Until the middle of 2008, consumption of goods and services rose substantially, fueled by lower savings, increased wealth and increased household debt.In light of the current economic recession, U.S. residents have been saving more and spending less. In the past 12 months, the savings rate—the percentage of unspent after-tax income—has risen from zero to 4 percent as consumption has been curtailed. What are the implications of a shift in consumption, and what is the impact on supply chain-related logistics and distribution real estate?Consumption levels in the U.S. have been…

Continued weakness in the economy and a surplus of 2009 deliveries will translate to an increased rise in nationwide industrial vacancy, according to a first-quarter report from Cushman & Wakefield Inc.U.S. vacancy rose to 9 percent from 8.3 percent in the fourth quarter and 7.2 percent at the end of the first quarter of 2008. The current rate is the highest in four years but still falls below the decade-high mark of 10.1 percent. The increase occurred throughout the country except the San Francisco peninsula and suburban Maryland. In addition, the number of industrial regions with a vacancy rate of…

Year-to-date multi-family transaction volume plummeted to historically low levels in the first quarter of 2009. As we move into the second quarter, activity appears to be increasing as sellers adjust their expectations, a change that will establish new pricing levels over the next 60 to 90 days. Private investors will drive the market over the next six to 18 months, as institutional money has disappeared. Most of the transactions will trade at substantially discounted prices to replacement costs, which have come down considerably in the past 12 months.The apartment sector has benefited from the presence of Fannie Mae and Freddie…

The green movement has many of us rethinking everything from the fibers in the clothes we wear to the way we transport our groceries back from the supermarket. Now President Barack Obama has called for a new national standard for fuel efficiency that’s as strict as the California program and will set limits on climate-altering gases from cars and trucks. The rules—which would create a car and light truck fleet that’s 40 percent cleaner and more fuel-efficient by 2016—would go into effect in 2012.In the meantime, apartment companies continue looking for ways to reduce their carbon footprints. Energy management, which…

Boston, Greater Philadelphia and Greater San Francisco are the three most successful regions at sustaining and building value in the life sciences area, according to a newly released study by the Milken Institute. These cities’ healthy life science sectors are to a large extent buoying the markets in the midst of the current economic turmoil.  Having a strong presence in the life sciences area is likely to pay dividends for these cities, the report states, as it is an industry that is likely to weather the economic downturn, and poised to benefit from federal policy and stimulus initiatives and future…

As the investment market remains in flux, those buyers with money to spend are continuing to eye high-value deals. In the latest such move, a joint venture between CB Richard Ellis Realty Trust and Duke Realty Corp. shelled out $41 million to acquire a pair of fully-leased office buildings in Houston and Orlando, along with a warehouse facility in Tampa. For the buyers, the current pricing downslope and limited buyer pool were key ingredients to getting their hands on attractive properties.“There is always an interest in finding good yielding properties with good cash flow and high quality tenants,” Jack Cuneo,…

Throughout the commercial property industry, the shift toward green development and sustainability has proven resilient even as the industry has been laid low by the global economic slump. Indeed, it is increasingly the economic benefits of sustainability, rather than environmental concerns, that is behind the drive to green, according to a just-released survey conducted jointly by the Royal Institution of Chartered Surveyors (RICS) and CPN.The study, conducted as a supplement to RICS’s quarterly Global Commercial Property Survey, canvassed an international slate of real estate professionals about the most important sustainability issue among their client and their own firms. The results…