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U.S. Firms Emerge Stronger
The Wall Street Journal :: April 9, 2012
Big U.S. companies have emerged from the deepest recession since World War II more productive, more profitable, flush with cash and less burdened by debt. An analysis by The Wall Street Journal of corporate financial reports finds that cumulative sales, profits and employment last year among members of the Standard & Poor's 500-stock index exceeded the totals of 2007, before the recession and financial crisis.
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Made in the USA Again: What Onshoring Means for Commercial Real Estate
National Real Estate Investor :: April 11, 2012
In mid-February, President Obama visited a Master Lock Co. factory in Milwaukee, which has rapidly become the poster child for the trend of “onshoring.” Since mid-2010, Master Lock, a manufacturer of padlocks and other security products, has brought 100 jobs back to Milwaukee that had previously been off-shored. Obama used the factory to discuss his Blueprint for an America Built to Last, which seeks to incentivize further creation of manufacturing jobs within the U.S. while removing deductions for shipping jobs overseas.Other, larger examples dot the industrial landscape.
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The Early Phase of Real Estate Recovery
National Real Estate Investor :: April 11, 2012
We consider real estate to be in the early phase of a cyclical recovery. After a hiring slump in mid-2011, the job market has begun to show signs of strength, as the unemployment rate continued declining in the first quarter of 2012. Real estate investment performance continues to display favorable conditions, a result of historically low borrowing rates and a modest inflationary outlook. Very limited new supply and rising demand is buoying real estate fundamentals for most property types. Investor interest to date has been focused on top-tier assets in prime markets and is thus reflected in bifurcated cap rates, with rate compression in those select markets and assets. At this early phase of the real estate recovery, we believe the real estate asset class can provide very attractive return opportunities relative to other alternatives.
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PwC Survey Shows Unevenness Across Markets
National Real Estate Investor :: April 11, 2012
PricewaterhouseCoopers LLP’s (PwC) first quarter report, “The Pulse of the Commercial Real Estate Industry,” reveals that the barometer for commercial real estate is positive overall but the rates of recovery and growth vary between markets. According to Chuck Di Rocco, director of real estate research with PwC’s Washington, D.C. office, the outlook for commercial real estate is generally good for 2012, due to the fact that the jobs outlook has improved. “It’s 32 months since the end of the recession and we’re still a little bit behind, and jobs are still a big driver for real estate,” DiRocco admits. Although 120,000 jobs added in March were fewer than expected and less than the pace in previous months, the unemployment rate is continuing to improve and fell to 8.2 percent.
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Reform May Impact the Medical Office Sector, but Nontraditional Spaces Promise Continued Growth
National Real Estate Investor :: April 9, 2012
The medical office sector has historically performed well—even during the recession—and this year should be no exception, according to analysts who say indicators point to a year of increasing activity. Such predictions come even as providers of healthcare face some daunting headwinds, including uncertainty about the impact of President Barack Obama’s proposed healthcare package and the status of Medicare and Medicaid in a time when cuts to government spending are likely. But these concerns are not likely to discourage investors who recognize the many upsides of medical office space.
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Can Retailers Halt 'Showrooming'?
The Wall Street Journal :: April 10, 2012
Shoppers who scope out merchandise in stores but buy on rivals' websites, usually at a lower price, have become the bête noire of many big-box retailers. The trend, known as "showrooming," hurts the bottom lines of traditional stores while benefiting online-only retailers such as Amazon.com Inc., which have the advantage of lower overhead costs and mostly can skirt the collection of sales tax.
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