Apparently, even the Greeks were tired of being in the limelight, which helped the financing markets avoid another summer meltdown and allowed the market to build some momentum going into the fourth quarter. CMBS lenders are reporting strong origination volume and seem more comfortable than any time in the past few years that they will be able to book profits on the deals they’ve been warehousing. Spreads tightened steadily through July and August, though the market gave back about 5bps in spreads during the last two weeks.
PICOR Connect | Trends in Commercial Real Estate
During my Q1 2012 Industrial Market update presentation for the Pima County Real Estate Research Council, I noted the schizophrenic market we seemed to be in at the time; a market which seemed to experience large swaths of space coming available and being absorbed, with the end result being no noticeable net gain or loss. This comment is also true today. For example, we watched a 100,000 sf industrial building on Belvedere get absorbed in a sale transaction which included a business expansion, while several miles away the American Airlines call center was coming available. We saw a 110,000 sf building near the airport come available as the occupant moved location and consolidated, yet we saw that building sell to a user who is planning to expand its operation, which transaction results in a reported absorption of that entire building. More recently, we’ve seen SOLON return a large chunk of its space to the market…yet the same space was put back into service by SOLON for the development of a new product line before it could be leased to a third party.