Quarterly Performance Report: Q3 2017

Quarterly Performance Report: Q3 2017

Posted on: November 23, 2017

Quarterly Performance Report Q3 2016MSR Holdings Inc. Q3 Performance

At the end of the third quarter of 2017, we had locked in a total of $7 million in acquisitions, while our development management arm continues to gain strength through the management of both third party and in-house projects.

“Our Q3 has shown steady growth and solidifies our stronghold in the Orlando market for medical commercial real estate. MSR’s stable expansion allows for perfect positioning to take advantage of economic growth that lies ahead in the last quarter of 2017 and the first two quarters of 2018.”

– Narinder Seehra, Chief Executive Officer

The Orlando and Greater Orlando market continues to show strength in its recovery, as can be seen by the heightened growth in residential build outs for the local communities. The market is further strengthened by the increased commercial development to support the growing residential communities.

We recently conducted client surveys, and were pleased to receive a vast amount of feedback. As identified by respondents, the most important factors in deciding to make an investment with MSR Holdings were:

  1. To take advantage of an investment opportunity
  2. To diversify my portfolio with commercial real estate
  3. Attractive rates of return compared to other investments

These have been our key points of focus, in addition to growing our quarterly distributions in the target 6-8% range to benefit our investors. Our strong track record of earnings and distribution growth delivery gives our long-term investors confidence in MSR Holdings.

As we enter the next quarter (Q4 2017), we are filling the remaining investor availability on these excellent commercial real estate investment opportunities in Florida:


New Port Richey

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An Overview of Florida’s Commercial Real Estate Market for Q3 2017

Orlando’s commercial real estate market continues to be strong in the third quarter of 2017. The market absorbed 150,000 sq. ft. in Q3 2017, driven by leasing activity in the South Orlando submarket.

Office development continues with two multi-tenant properties totaling 350,000 sq. ft. under construction at the close of the third quarter, providing new opportunities for investment and reflecting Orlando’s active economic development.

In addition, 118 new leases were signed totaling over 498,000 sq. ft. Cross-border transaction volume has also jumped to 14% in 2017 from 7% last year, supported by activity from Canada, Germany, and China.

Employment in Orlando is also on the rise with over 40,000 new jobs added in the last quarter, one of the largest gains of the 24 Florida metros. Florida’s non-seasonally adjusted annual job growth rate was 2.6%, representing an increase of 221,400 jobs from August 2016.

Q3 Orlando Vacancy Rates

  • Office vacancy rates are 9.2%; down 220 basis points from Q3 of 2016.

Q3 Orlando Average Asking Rental Rates

  • Office rental rates increased to $20.87 per sq. ft.; up $0.45 from Q3 2016.

The Orlando economy continues to expand from economic fundamentals that include a strong and growing workforce and a booming tourism industry. Looking ahead, entertainment and high-tech industries are likely to continue to support market growth while new and expanding businesses will also contribute to the demand for office space.

Over the long-term, Orlando is poised to see notable economic growth as many key drivers and infrastructure projects are in place that should help boost the already thriving business activity.

MSR Holdings Inc. acquires exclusive commercial real estate investment opportunities in the US and Canada, providing sophisticated investors with profitable portfolio diversification opportunities. Contact us today to discuss becoming one of our select investors.

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