Asking rents for industrial space hit record high; Brookfield refinances hotels

S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

Asking rents for industrial properties in the US reached a record high in the second quarter despite rising vacancy, CBRE said in a report. The average asking rent stood at $10.06 per square foot, up 9.9% on an annual basis and 1.3% quarter over quarter.

The overall vacancy rate in the second quarter was at 3.7%, up 30 basis points from the previous quarter.

Industrial space totaling 125.2 million square feet completed construction during the period, 38.6% of which was occupied. Industrial space under construction totaled 578 million square feet in the second quarter, down 7.7% from a year earlier.

Leasing activity stood at 372 million square feet, dropping 18% from the same period in 2022.

CHART OF THE WEEK: US REIT capital offering activity down in July

⮞ US equity real estate investment trusts in July raised a total of $4.25 billion via capital offerings, down more than 38% month over month but up from only $426.4 million a year ago.

⮞ Of the total, $3.4 billion was raised via debt offerings, while common equity offerings accounted for the remainder.

⮞ Public Storage secured the largest amount during the month, with $2.20 billion raised through debt offerings.

Million-dollar transactions

– The Related Cos. LP sold a luxury multifamily property in New York City to Pacific Urban Investors and the California Public Employees’ Retirement System for over $180 million, Commercial Observer reported, citing sources familiar with the trade. Known as The Sierra, the property at 130 W. 15th St. contains 213 units.

– Affiliates of Dream Motor Group acquired four real estate properties in Miami-Dade County, Fla., from Ussery Automotive Group for $150 million, The Real Deal reported, citing records and data provider Vizzda. The properties are the former police headquarters building in Coral Gables for $45 million, an auto body repair shop in Cutler Bay for $5 million and a pair of Mercedes-Benz dealerships in both cities for $100 million.

Hotel refinancing

– Brookfield Properties LLC obtained a $210 million loan to refinance The Ritz-Carlton hotel in Key Biscayne, Fla., Commercial Observer reported. Citibank added $20 million to a $190 million loan for the property.

– Brookfield Properties also refinanced the Hilton Fort Lauderdale Marina in Fort Lauderdale, Fla., and The Westin Savannah Harbor Golf Resort & Spa in Savannah, Ga., according to a separate report from Commercial Observer. Citibank and Natixis provided the $220 million loan, of which $144.1 million covered the Florida hotel and the rest covered the Georgia resort, the report said, citing property records.

See key people moves in North American real estate.

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