Investment activity up in 2002.The real estate capital markets experienced a significant increase in investment activity throughout 2002 as investors continued to exit the stock market, which declined significantly for the third consecutive year. Investors are likely to continue moving capital in this direction throughout 2003, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest, year-end Capital Markets Report from Granite Partners LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a leading real estate investment-banking firm. Granite Partners recorded $71.3 billion in office, retail, multifamily and hotel transactions in excess of $10 million each during 2002, a 41 percent increase above the $50.7 billion in transactions recorded in 2001, and a 21 percent increase above the $59 billion in transactions recorded in 2000. The report characterized 2002 as the "Year of Retail," with transaction activity almost tripling to $21.5 billion, not including the $5.3-billion dismantling dis·man·tle tr.v. dis·man·tled, dis·man·tling, dis·man·tles 1. a. To take apart; disassemble; tear down. b. of the Rodamco mall portfolio. Investment activity also increased significantly in the office and multifamily sectors, but declined for hotels, which continue to suffer from the fallout fallout, minute particles of radioactive material produced by nuclear explosions (see atomic bomb; hydrogen bomb; Chernobyl) or by discharge from nuclear-power or atomic installations and scattered throughout the earth's atmosphere by winds and convection currents. of the events of September 11 and the weakened economy. Granite expects that economic and geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. trends will continue to make real estate an attractive investment throughout 2003, with transaction activity proceeding at the same velocity as last year. In its Report, Granite notes that the renewed interest in real estate is primarily capital market-driven, with historically low interest rates and the sector's comparative stability, current cash flow and favorable risk-adjusted returns Risk-Adjusted Return A measure of how much risk a fund or portfolio takes on to earn its returns, usually expressed as a number or a rating. Notes: This is often represented by the Sharpe Ratio. The more return per unit of risk, the better. providing the main attraction for investors. The Report goes on to note that this significant increase in investment activity has taken place despite the decline in leasing market fundamentals nationally, which continued to decline throughout 2002 as a result of the weakened economy. The Capital Market Report's key conclusions for the office, retail and multifamily sectors, include: * Office: Granite recorded a total of 576 domestic office transactions valued at $10 million or more, with an aggregate value of $35.4 billion during 2002. This easily surpassed the 482 transactions and $29.3 billion of sales recorded during the previous year. Major markets dominated total transaction activity throughout 2002 with New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Los Angeles/Orange County, Chicago, Washington, DC, and Boston accounting for 53 percent of national office investment volume in 2002. * Retail: Retail investment activity increased dramatically in 2002 across the broad spectrum of property types including malls, shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , power centers and outlet centers. The renewed interest in retail, which was also primarily capital market-driven, generated $21.5 billion in total transaction volume for deals valued in excess of $10 million, not including the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of the $5.3-billion Rodamco mall portfolio. * Multifamily: Multifamily investment activity also increased significantly in 2002 despite rising homeownership and a corresponding decline in rental markets nationwide. The Granite report showed increased multifamily investment in 2002, recording a total of $11.2 billion in transactions exceeding $l0 million. |
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