Prime warehouse properties and small buildings in good physical condition are on the buying list of institutional investors these days, Livingston says. The only problem: Little product is available.
"This is driving down the sales cap rate," the developer says. Single-family lots are also high on big-name buyers' shopping lists. "Land sales for development are strong," as are home sales, Livingston tells GlobeSt.com.
But the office development segment "remains weak due to lack of demand from expansions or relocations," he says. "Significant sublease space (estimated by Grubb & Ellis Co. at 650,000 sf) overhangs the supply."
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