Foreign Investment in U.S. Net-Lease Assets Up 78 Percent Annually in 2019

CBRE | September 04, 2019

According to the latest research from CBRE, U.S. net-lease investment is outpacing the broader commercial real estate market in 2019, with increasing demand from both foreign and domestic investors for office and industrial assets. Net-lease investment comprising office, industrial and retail properties climbed 17.2% year-over-year in the first half of 2019 to $33.4 billion, with total commercial real estate volume growth at 13.4% over the same period.

Spotlight

Bonds are a vital component of the commercial real estate lending market. They set the limit on what banks and lenders charge for commercial real estate loans. More specifically, the 10-year Treasury note is one of the major bonds that affect mortgage rates. It is also the benchmark for commercial and residential real estate loans. The 10-year Treasury note also sets the tone for how the real estate market performs and where it’s headed.

Spotlight

Bonds are a vital component of the commercial real estate lending market. They set the limit on what banks and lenders charge for commercial real estate loans. More specifically, the 10-year Treasury note is one of the major bonds that affect mortgage rates. It is also the benchmark for commercial and residential real estate loans. The 10-year Treasury note also sets the tone for how the real estate market performs and where it’s headed.

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REAL ESTATE TECHNOLOGY

Quebec Real Estate Record Sale of Penthouse Condominium Breaks

businesswire | January 13, 2021

Sotheby's International Realty Canada today declared the sale of a private residential townhouse at The Ritz-Carlton Residences in Montreal that has set another benchmark as the highest recorded apartment suite sale through the MLS® (Multiple Listing Service) system in Quebec's history. Listed at $12.9 million, the approaching sale takes place as Montreal's land market continues to encounter strong interest and record setting sales movement as the locale's market transitions into 2021. “The Ritz-Carlton Residences Montreal is regarded as being amongst the world’s most prestigious offerings in real estate, and as its ‘crown jewel’, this penthouse is a masterpiece of contemporary architecture, design and engineering,” said Liza Kaufman, listing agent with the Kaufman Group of Sotheby’s International Realty Quebec, who represented both the seller and the buyer in the transaction. “While we captured local and international interest by building bridges and expanding our marketing efforts across the Sotheby’s International Realty network, the property was ultimately purchased by a buyer from the U.S. The sale of this only reinforces Montreal’s position as a desirable destination within the global real estate market. It also reflects the underlying resilience of our city’s luxury condominium market, and the fact that demand for prestigious brands and properties will always be enduring,” Kaufman said. Kaufman previously represented the seller and the purchaser in the sale of a private single family home in Montreal in August 2020 that set the new benchmark as the highest recorded residential property sale through the MLS® (Multiple Listing Service) system in Quebec's history. The 6,979 square foot penthouse is perhaps the most flawlessly curated and made apartments in Montreal. Nicknamed the "Rockstar" by the engineer, the two-story residence was designed to glide over its surroundings with steel and glass construction that invites all encompassing views of the mountains, the Golden Square Mile and the Museum of Fine Arts. The three-room, four-plus-ensuite restroom residence features 5,301 square feet of inside living space. The first floor is committed to social occasion and engaging, and features double lounges with 25 foot ceilings, a conventional lounge area and gourmet specialist's kitchen with steward's wash room and prep zone. This floor also encompasses a guest suite with an ensuite restroom and stroll in closet. A dynamic glass and steel staircase connects the levels perfectly and practically, and a private lift can also be taken to the living quarters above. The highest level includes a luxurious master suite highlighting a master shower and a sitting territory, enormous stroll in closets, high ceilings, impressive views and access to a private patio. The penthouse residence also features 1,678 square feet of expansive open air terraces, as well as access to The Ritz-Carlton Residences' amazing amenities and services, including a state-of-the-craftsmanship spa, fitness focus, valet, attendant, custodian and doorman. “Montreal’s residential real estate market showed great strength throughout 2020,” said Daniel Dagenais, Managing Broker of Sotheby’s International Realty Quebec. “Across both the conventional and luxury real estate markets, we experienced record setting sales this year. In fact, according to the latest statistics released for the Montreal Census Metropolitan area by our real estate board, the median price of residential condominiums was projected to be up well over 10% in 2020.” The record transaction demonstrates solid, underlying demand for luxury condominium property types in key Canadian markets. “In spite of the COVID-19 pandemic, the performance of the Canadian real estate market well surpassed consumer and industry expectations in 2020, signaling strong consumer confidence in our country’s market fundamentals,” said Don Kottick, President and CEO of Sotheby’s International Realty Canada. “While the condominium market is expected to balance in 2021, this record sale illustrates that demand for top-tier luxury condominiums remains substantial. Sold to a U.S. buyer, this transaction also demonstrates that there is significant demand for Canadian real estate from local, national and international buyers.” Favourable mortgage lending conditions and continued stock market uncertainty position Canadian real estate as an attractive and stable investment alternative, Kottick said. Further details of the sale of this estate remain private. About Sotheby's International Realty Canada Combining the world's most prestigious real estate brand with local market knowledge and specialized marketing expertise, Sotheby's International Realty Canada is the leading real estate sales and marketing company for the country's most exceptional properties. With offices in over 30 residential and resort markets nationwide, our professional associates provide the highest caliber of real estate service, unrivalled local and international marketing solutions and a global affiliate sales network of approximately 1,000 offices in 71+ countries and territories to manage the real estate portfolios of discerning clients from around the world.

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REAL ESTATE TECHNOLOGY

KKR expands its Phoenix real estate industrial portfolio with a new acquisition

businesswire | January 12, 2021

KKR, a main worldwide speculation firm, today reported the procurement of a 263,000 square foot modern dissemination property in Goodyear, Arizona. Deliberately situated in closeness to the I-10 interstate thruway, a significant crosscountry shipping vein, the property builds KKR's mechanical land impression in the Phoenix, Arizona metropolitan factual territory (MSA) to more than 2,000,000 square feet. The property is present day satisfaction focus finished in 2019 with best in class actual highlights including 36' clear tallness and was 100% rented at obtaining to great occupant on a drawn out premise. KKR gained the resource from the engineers, Provident Real Estate Ventures and Merit Partners. “We continue to like high growth markets across the Sunbelt and are excited to further expand our presence in Phoenix with this high quality asset well suited to today’s logistics needs,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. KKR is making the speculation through its center in addition to land technique. Across its assets, KKR currently claims around 32 million square feet of mechanical property in essential areas across significant metropolitan regions in the U.S. Since dispatching a committed land stage in 2011, KKR has developed land resources under administration to roughly $14 billion across the U.S., Europe and Asia as of September 30, 2020. The worldwide land group comprises of more than 90 committed speculation experts, crossing both the value and credit organizations. About KKR KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds.

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REAL ESTATE TECHNOLOGY

KKR is growing its Texas real estate industrial portfolio with new acquisitions in Dallas and Houston.

businesswire | December 04, 2020

KKR, a main worldwide speculation firm, today declared the securing of two mechanical appropriation properties in Texas adding up to around 1.8 million square feet at a total buy cost of roughly $171 million. The recently obtained properties are situated in the significant business sectors of Dallas and Houston. Both are best in class satisfaction focuses with a normal vintage 2019. The properties were 100% rented at securing to two distinctive speculation grade occupants on a drawn out premise. The properties were obtained from Hines, the worldwide land firm, which built up the resources. The two properties are the most recent mechanical resources procured by KKR's center in addition to land system, developing its all out modern land portfolio to around 7.2 million square feet. Over its assets, KKR claims more than 20 million square feet of mechanical property in key areas across significant metropolitan regions in the U.S. “As more consumers migrate to shopping online and expect a seamless delivery experience, the demand for modern logistics real estate in major markets continues to grow,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. “We are excited to help meet that demand by increasing our footprint in the Dallas and Houston markets with the addition of these two high-quality, stable assets.” Since dispatching a devoted land stage in 2011, KKR has developed land AUM to roughly $14 billion over the U.S., Europe and Asia as of September 30, 2020. The worldwide land group comprises of more than 90 committed venture experts, traversing both the value and credit organizations.

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