Tag Archive for: commercial real estate lending

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Industrial Rents Rise As New Pipeline Rebalances

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National industrial in-place rents increased by 7.6% year-over-year to an average of $7.74 per square foot in January as the industrial new supply pipeline undergoes a rebalancing,Ā accordingĀ to CommercialEdgeā€™s February Industrial Report.

The national vacancy rate rose 20 bps month-over-month to 4.8% as nationwide, an increase of 80 basis points over the last 12 months.

Nearly 425 million square feet of industrial space was under construction. New deliveries are forecast to decline in coming years, according to CommercialEdge.

Industrial transactions totaled $2.6 billion through January, at an average sale price of $145 per square foot. The top market for rent growth remained the Inland Empire, with average rents rising 12.9% year-over-year in January and Miami experienced the third-highest rent growth in the country, reaching 11.4% as of January.

The sales volume leader at the start of this year was Chicago and Philadelphia led the Northeast in development, with 7.8 million square feet underway as of January.

ā€œThe influx of new supply contributed to keeping the growth of sales prices in check,ā€ Commerical Edgeā€™s Evelyn Jozsa writes. ā€œThis comes after more than 1.1 billion square feet of new industrial space (5.7% of the stock) has been completed since the start of 2022, a rate which wasnā€™t sustainable over the long run. This has helped ease the pressure in some industrial markets that were experiencing extremely tight vacancies coming out of the pandemic.ā€

The national vacancy rate currently sits at 4.8%, an increase of 80 basis points over the last 12 months. New industrial starts in 2023 totaled 314.6 million square feet, down significantly from the 593.2 million square feet in 2022 and the 557.4 million square feet in 2021.

ā€œStabilizing construction deliveries and start volume are healthy market responses to what has been happening over the last three years,ā€ according to Peter Kolaczynski, Director, CommercialEdge. ā€œWe believe demand will remain strong, allowing for a boost in construction starts over the next few years.ā€

After the robust previous two years, the main drivers of this current cooling were interest rate increases, general economic uncertainty, and banks pulling back on construction loans.

Commercial Edge forecasts that construction starts should pick up again once interest rates come down and the industrial sector has had time to fully reckon with the impact of historic levels of new development.

ā€œRent growth will cool this year as demand for industrial space continues to wane and the record level of new supply delivered over the last two years becomes fully absorbed,ā€ Jozsa writes.

Long-term, rent growth should remain solid even amid headwinds faced by the sector, according to the report.

 

Source: GlobeSt.

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Anticipating Demand For Loans, City National Bank Of Florida Expands Commercial Banking Team

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City National Bank of Florida added six Wells Fargo veterans to its commercial lending team.

CEOĀ Jorge GonzalezĀ said the bank expects demand for commercial loans to surge in 2021 as more high-net-worth individuals and new-to-market businesses migrate to the state. The senior-level hires will help the bank keep up with that demand.

ā€œWe are hiring to serve this segment and deliver the exceptional client experience and personal relationships we are known for,” Gonzalez said.

The new hires are:

  • Jose A. Sanchez, managing senior VP and commercial banking executive. He was previously senior VP, commercial banking segment leader at Wells Fargo.
  • Jacqueline Sanchez, senior VP and director of commercial banking. She was previously senior VP of commercial banking at Wells Fargo.
  • Jorge Pereiro, VP and senior commercial banker. He was previously VP and principal relationship manager of business banking at Wells Fargo.
  • Kathryn Ladino Arana, VP and senior commercial banker. He was previously VP and principal relationship manager of business banking at Wells Fargo.
  • Elena Santana, VP and senior commercial banker. She was previously VP, senior relationship manager at Wells Fargo.
  • Ana Yanquez, VP, commercial banking. She was previously VP, business relationship manager at Wells Fargo.

City National Bank is South Florida’s second-largest bank by assets, with $18.6 billion as of Dec. 31. In November, the bank completed its purchase of Executive National Bank, its second acquisition in just over two years.

The Miami-based bank wasĀ one of the region’s top Paycheck Protection Program lendersĀ andĀ among the few banksĀ in the nation to participate in the federal Main Street Lending Program for businesses.

 

 

Source: SFBJ