Commercial real estate expert and founder of CTK Real Estate, — Chris Kamberis, says that the cause for the high demand but no supply of commercial properties in most cities around the nation is the high race for virtually any type of site available, regardless of what it is used for. The properties are being bought as soon as they reach the market, making industrialized tenants paying higher rental fees or even including neighboring cities and states in their searches, as reported by a recent article in National Real Estate Investor.
According to Chris Kamberis, this emerging trend is also confirmed in the release of the July Beige Book by the U.S. Federal Reserve Board, "Industrial real estate markets strengthened further…with asking rents continuing to climb briskly and vacancy rates falling to their lowest levels since before the recession." Kamberis notes that as a result retailers and third-party logistics operators, which prefer to be located in cities, are being forced to look at the surrounding areas as distribution hubs. Additionally, less than half the anticipated demand for industrial space is under construction.
The competition from growing tech companies is increasing, says Chris Kamberis, with landlords eager to make the switch as they have seen the price per square foot more than quadruple for office locations. According to a report from CBRE, a real estate services firm, rents for logistics centers saw an astounding year-over-year 5.6 percent increase. With e-commerce expanding and start-ups locating in urban areas, Kamberis notes housing for employees is also in high demand. Millennials typically choose to live close to work. Therefore, multi-family conversions are tapping the available supply of office, production, warehouse, or distribution facilities. This trend is occurring in markets across the country, especially San Francisco - which is experiencing the strongest demand for office space in America.
For investors, Chris Kamberis suggests with U.S. interest rates still near a historic low, the borrowing landscape is attractive. Considering the high demand and short supply in the commercial and industrial market, he stresses the importance of doing your due diligence.
With over two decades of experience, Chris Kamberis has established himself as a leader in the commercial real estate market. As the founder of CTK Real Estate, he is known for his research consulting and strategic analysis and as someone who can recognize potential in any economic climate. To date, Kamberis has led projects with some of the world’s biggest corporations, including Bank of America, JP Morgan Chase Bank, Fifth Third Bank, McDonald’s, Burger King, BP Products North America, and Starbucks.
Chris Kamberis - Property Expert and Founder of CTK Real Estate: http://www.chriskamberisnews.com
Opus Development plans 256 apartments over retail in Westport: http://www.bizjournals.com/kansascity/news/2017/03/06/opus-development-westport-256-apartments-retail.html
New Westport player flips one of his properties for Opus' redevelopment: http://www.bizjournals.com/kansascity/news/2017/03/07/ctk-group-developer-chris-kamberis.html
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