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Mike began specializing in industrial brokerage with Colliers International in 1999, and in May 2005, joined Alliance Commercial as a Partner and as Vice President of its Industrial Properties Group. In May of 2007 Alliance Commercial became NAI Alliance and Mr. Hoeck became a Senior Vice President.
Last week, I came across an interesting article in the Wall Street Journal entitled “Industrial-Space Showdown.” Morgan-Stanley and Blackstone Group are both jockeying to take control over a defaulting CalWest portfolio. This is a major portfolio, which includes 23 million square feet of property throughout many of the western states. Currently, industrial space property has a much slower rising value, and this article has brought up an intriguing point about how investors are starting to buy more of these properties around the country. Investors are seeing a future strength in the economy, which will increase the need and value of industrial space. While the deal over who will take control over CalWest’s assets is still undetermined, this article shows a valid point how investors are seeing a change in the market and gravitating towards buying industrial space. Prices are well below replacement and cap rates are 150 to 250 basis points above the values 3 years ago.
-Information Provided by The Wall Street Journal, April 2012