October 25th - November 7th, 2014

CRE Transaction Rise 16% in First Half of 2014

10/24/14 GlobeSt.com Erika Morphy
You dont have look far or very hard for an indicator that the commercial real estate industry is
thriving. CMBS is on track for $100 billion in issuance this year; multifamily continues its momentum;
crowdfunding is reaching levels unexpected by even its most ardent fans. But one indicator
transaction activity inarguably trumps them all. Here, too, though, it is clear that CRE is trending
high. "Transaction activity continues to be the highlight of this CRE recovery, with solid growth in both
primary and secondary markets" writes Bob OBrien, Deloittes Chicago-based global and US real
estate services leader, in the company's recently-released "2015 Commercial Real Estate Outlook."
"In fact, capital availability is increasing competition as both domestic and international investors show
significant interest in CRE as an asset class. Consequently, asset pricing continues to show sustained
growth." It is, in other words, a virtuous circle for the industry. Read more...

Tide of Liquidity Buoys CRE Market: MMI

10/31/14 GlobeSt.com Paul Bubny
The term perfect storm, often used to describe a positive confluence of market factors in commercial
real estate, actually has a negative connotation: in its original meteorological usage, it means that
conditions could not possibly be worse. Using that term to describe the current market could go either
way: for investors seeking high yields, its getting to be heavy weather, but for CRE as a whole,
conditions are highly favorable. Thats the conclusion to be drawn from a newly issued capital markets
report from Marcus & Millichap, prepared and edited by William E. Hughes, SVP, Marcus &
Millichap Capital Corporation,which provides an overview as well as sector-by-sector analysis.
Strong capital flows, from both equity and debt sources, are boosting the liquidity of the commercial
real estate market and driving transaction activity, according to MMI. Equity capital of all stripes
from local investors and 1031 exchanges to institutions that include REITs, private equity and
sovereign wealth funds have accelerated acquisitions and portfolio repositioning to capitalize on
the low cost of capital, consistent revenue streams and rising prospect for appreciation. Read more...

Rents skyrocket well beyond wages

11/6/14 CNBC Diana Olick
Why renters remain in a housing Catch-22. Demand is driving rents to record levels, but home prices
are also rising. That leaves renters who want to buy homes in a tough spot, CNBCs Diana Olick
reports. Lease a two-bedroom apartment in Miami, and you could be putting more than half your
salary into the rent check. The same is true for Los Angeles and New York Cityand it's only getting
worse, according to a report from real estate company Trulia. Rents are rising most in the local
housing markets where renters are already stretched thinnest. In the five least affordable markets,
rents are now 7.8 percent higher than they were a year ago. "Rents are rising because of strong
demand that supply hasn't kept up with. Nearly all the new households are renters, and young people
moving out of their parents' homes will keep fueling rental demand," said Jed Kolko, chief economist
at Trulia. Nationally, rents for units currently listed rose about 6 percent from a year ago, thanks to
strong demand and still- limited supply. Median rents for those already occupying units rose a little
over 3 percent. Read more...

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U.S. Stocks Fluctuate Near Record Levels After Employment

Report
11/7/14 Bloomberg for the Washington Post Joseph Ciolli and Lu Wang
U.S. stocks fluctuated, after benchmark indexes closed at all-time highs yesterday, as a report
showed companies hired fewer workers than forecast in October while the jobless rate dropped to a
six-year low. Energy stocks rallied as Diamond Offshore Drilling Inc. and Newfield Exploration Co.
climbed more than 4.2 percent. Sears Holdings Corp. soared 39 percent on plans to explore the sale
and leaseback of 200 to 300 stores. Walt Disney Co. slid 2.6 percent after it reported profit fell at TV
networks. Salix Pharmaceuticals Ltd. tumbled 32 percent after its chief financial officer resigned. The
Standard & Poors 500 Index rose less than 0.1 percent to 2,033.12 at 1:56 p.m. in New York. The
Dow Jones Industrial Average gained 16.68 points, or 0.1 percent, to 17,571.15. The Nasdaq
Composite Index dropped 0.1 percent. Trading in S&P 500 companies was 16 percent below the 30day average for this time of the day. Read more...
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This newsletter is a summary of articles related to commercial real estate news in the Baltimore/Washington market, collected from local publications as noted above. Should you
require specific information, please refer to the publication source or call one of our professionals at 410.821.8585. All information furnished regarding property for sale, rent,
exchange or financing is from sources deemed reliable. No representation is made as to the accuracy thereof and all such information is submitted subject to errors, omissions, or
changes in conditions, prior sale, lease or withdrawal without notice. All information should be verified to the satisfaction of the person relying thereon.