Quarterly Performance Report: Q2 2016

Quarterly Performance Report: Q2 2016

Posted on: September 8, 2016

Quarterly Performance Report: Q2 2016MSR Holdings Inc. Q2 Performance

As we reflect back on the second quarter of 2016, our acquisitions continued to gain momentum in the US and Canada from both our development projects and commercial real estate investments.

By the end of Q2, we had locked in $9.6 million in acquisitions and the third quarter shows continued growth at the same pace.

“US commercial real estate continues to grow as a result of the economic growth being experienced in all sectors of industries across the US. As such, commercial rental rates are beginning to mirror this steady growth.” 

– Narinder Seehra, Chief Executive Officer

Atrium Medical BuildingAs we move through the third quarter of 2016 (Q3 2016), we have just sold out the remaining investor availability in The Atrium Medical Building, an excellent commercial real estate investment opportunity in downtown Kissimmee, Florida.

As always, our readers will be the first to know as we bring more exclusive US commercial investment opportunities to our select investors. Join the registry to receive property notifications.

An Overview of Florida’s Commercial Real Estate Market for Q2 2016

Leasing activity maintains momentum in Orlando, Florida throughout Q2, with 492,394 sq. ft. of net absorption in the office sector. Orlando’s office vacancy rate continued to recover for the seventh straight year. Currently, three office buildings are under construction, totalling 163,000 sq. ft.

Orlando’s population and job creation are both on the rise, making it the fastest growing region in America’s 30 largest regions. Orlando has added over 60,000 new residents in the past 12 months.

In the retail sector, Q2 saw overall vacancy declines fueled by strong tourism and consumer spending. Floridians are expected to spend nearly 14% of their consumption expenditures on food and entertainment in 2016, nearly twice the national rate. Supporting this growth, almost 1 million sq. ft. of new retail space is now under construction.

Orlando, Florida Q2 Vacancy Rates:

  • Office vacancy rates are 12.7%; down 410 basis points from Q2 2015.
  • Retail vacancy rates are 5.9%; down 50 basis points from Q2 2015.

Orlando, Florida Q2 Average Asking Rental Rates:

  • Office rental rates are remaining stable at $20.11 per square foot; down $0.04 from Q2 2015.
  • Retail rental rates are $14.53 per square foot; up $0.61 from Q2 2015.

Due to job growth, in-migration, a thriving tourism industry, a rebounding housing market, theme park expansions, ongoing projects continue to improve the transportation infrastructure, and other factors throughout Florida and Orlando, the Florida market is poised for a strong 2016.

For a concise summary of the Central Florida market in the previous quarter (Q1 2016), click here for an infographic from Colliers International.

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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