The best Latest real estate alert from Green Street has looked at the performance of various sectors. In addition to office and multi-family housing, which GlobeSt.com has already reported on, the performance of the industrial, retail and hotel sectors must also be described.
Industrial transactions declined 2.2% in the first half of 2024 compared to the same period in 2023. This was the smallest decline of any property type observed. The top five metropolitan areas with industrial growth were Denver, CO (+181.7%); Dallas/Fort Worth, TX (+118.0%); Ft. Lauderdale, FL (+58.0%); DC Metro (+42.4%); and Phoenix, AZ (+41.7%).
Part of the increase was due to Amazon increasing warehouse rents in the second quarter, with 14 million new square feet of new commitments. That’s almost as much as it committed to in all of 2023. Green Street said Amazon’s e-commerce volumes appear to be growing at double digits. Other major retailers are not growing at the same pace.
The five worst performing metropolitan markets for industrial real estate were Houston, TX (-46.3%); New York, NY (-41.1%); Orange County, CA (-40.1%); Miami, FL (-38.0%) and Los Angeles, CA (-21.9%).
In retail, category volume declined 22.9% year-over-year. Sales also declined 6% compared to the first quarter. Malls saw the smallest decline at just -7.0%. Net lease sales declined 22.0% and mall sales declined 46.0%.
One reason for the downtown location is the lack of new supply, which Green Street called a “remarkable tailwind” compared to other property types.
The five largest growth markets were San Francisco, CA (+228.8%); Ft. Lauderdale, FL (+75.0%); Tampa-St. Petersburg (+59.6%); DC Metro (+49.6%); and Orange County, CA (+35.3%).
The five worst performing metropolitan markets in retail were Philadelphia, PA (-60.0%); Dallas/Fort Worth, TX (-43.6%); Houston, TX (-42.0%); San Diego, CA (-27.8%) and Atlanta, GA (-22.9%).
Hotel sales saw a slight decline of 3.0% between the first half of 2023 and 2024. The percentage differences in growth were large. The top five were Inland Empire, CA (+638.6%); Oakland-East Bay, CA (+606.8%); Chicago, IL (+330.7%); Denver, CO (+238.6%); and New York, NY (+158.5%).
The five largest declines were in San Diego, CA (-41.1%), Austin, TX (-37.9%), Orlando, FL (-31.9%), Tampa-St. Petersburg, FL (-14.8%) and Phoenix, AZ (-5.1%).
