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The National Association of Realtors projected in its latest Commercial Real Estate Outlook that retail sector vacancy rates will rise from 9.7 percent in the second quarter of this year to 10.4 percent in the second quarter of 2009, as rising food and energy costs continue to impact consumer purchases. Average rents are expected to move accordingly, with growth shrinking from 3.2 percent last year to 1.2 percent this year and dropping by 0.9 percent next year. Yet net absorption, which totaled 11.1 million square feet in 2007, should turn negative this year as retailers suffer more in the second…

Commercial and multi-family mortgage delinquency rates as a group experienced minimal increases during the second quarter but continued to perform well, according to a report from the Mortgage Bankers Association. The multi-family sector, specifically, saw $1.489 billion in delinquencies in June, according to data from Standard & Poor’s Corp., barely up from $1.485 billion in March. Fannie Mae and Freddie Mac, which hold more than 80 percent of commercial and multi-family mortgage debt outstanding, saw minimal delinquencies, with just 0.11 percent of Fannie Mae’s loans 60 or more days delinquent and 0.03 percent of Freddie Mac’s at that level, according…

The latest from the tumult on Wall Street and the rest of the financial world, according to various news sources. • Wachovia Corp., which might buy Morgan Stanley, is having problems of its own, having taken $22.7 billion in write-downs thus far, most of them real estate related, according to Bloomberg. A lot of the company’s exposure to toxic real estate loans dates from its $25 billion acquisition of Golden West in 2006, at the height of the credit bubble. • Today the Dow Jones Industrial Average defied the onrush of grim news by advancing more than 400 points at…

Dividend Capital Total Realty Trust Inc. has closed on a Kentucky industrial real estate portfolio, the REIT announced. The portfolio contains five industrial distribution facilities located in Louisville, Ky. These house approximately 890,000 square feet. The properties are currently 97% occupied. Louisville is a particularly strong choice due to the decision by UPS to expand its WorldPort global air hub at the Louisville International Airport, according to the Denver-based REITAs of June 30, 2008, the company owned 62 properties totaling approximately 10.8 million square feet in 19 geographic markets.

Taking advantage of a traditionally underserved student housing market, independent investment manager Henderson Global Investors, based in Chicago, has acquired The Verge Apartments in Sacramento for $36 million.The 792-bed community (pictured) serves the Cal State-Sacramento student housing market. The acquisition is the initial investment by a joint venture between Henderson and Valeo University Communities, Inc. The venture was formed through Henderson’s Manager of Partners Program. Student housing continues to be an outstanding portfolio diversifier because its value isn’t correlated to the rest of the real estate industry, a Henderson spokesman said. Additionally, Sacramento’s weakened housing market is forecast to prop…

ProLogis has announced that is has renewed a total of approximately 1.5 million square feet in Ohio and Pennsylvania with Kraft Foods. Kraft will continue to lease approximately 675,000 square feet at ProLogis Foreign Trade Center, a distribution park in the greater Columbus, Ohio metropolitan area. Located near the intersection of Interstate 270 and Highway 23, the park is close to the Rickenbacker International Airport and has access to I-70 and I-71. In Eastern Pennsylvania, along the I-78 corridor, Kraft renewed approximately 800,000 square feet with a new lease agreement signed in April of 2008. Kraft will continue to lease…

The major commercial real estate sectors are getting sick, thanks to tight credit and declining economic activity spawned by the meltdown of billions of dollars of Wall Street investments, according to the latest Commercial Real Estate Outlook, which is published by the National Association of Realtors research division for the Realtors Commercial Alliance. The report surveyed office, industrial, retail and multifamily activity in 50 to 60 markets, depending on the category. The credit crunch, which is pronounced in commercial lending, has combined with the slowing economy to slow net absorption of commercial real estate space in virtually all of the…

Now everyone waits for Act 3. The next phase of the AIG saga, following its rapidly escalating financial crisis and Tuesday night’s 11th-hour rescue by the Federal Reserve, will be the development and execution of a restructuring plan to save both the world’s largest insurance company and the up to $85 billion in loans the Fed has pledged. Last night, the Federal Reserve Bank of New York received the OK to lend up to $85 billion to keep AIG out of bankruptcy. In return, the federal government will get 79.9 percent of AIG stock. Immediately before the decision, it was…

Acting at the behest of the U.S. Federal Reserve, the U.S. Department of the Treasury has put into effect–for the short term–a new program designed to provide a cash infusion for the Federal Reserve’s initiatives. The Supplementary Financing Program, announced today, will allow for the selling of a series of Treasury bills. The new financing vehicle is separate from the Treasury’s existing borrowing programs. “The Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week,” the Treasury…

Temple Real Estate Investment Trust, Winnipeg, has agreed to purchase the Capri Centre, a 14-story full-service hotel, trade and conference center in Red Deer, Alberta, for C$40 million (U.S.$37.7). The 10.7-acre complex includes 218 guestrooms, including eight two-story one- and two-bedroom suites; three restaurants and three lounges; conference and trade show facilities consisting of 16 meeting rooms totalling 53,000 square feet, the largest of which can accommodate up to 1,000 people; on-site parking for more than 1,200 vehicles; and a heated outdoor swimming pool. The acquisition is scheduled to close on November 1. Following an C$8 million (U.S.$7.5) capital expenditure…