Quarterly Performance Report: Q3 2016

Quarterly Performance Report: Q3 2016

Posted on: November 17, 2016

Quarterly Performance Report Q3 2016MSR Holdings Inc. Q3 Performance

During the third quarter of 2016, we continued to grow our commercial acquisitions in the US and work on our development projects in Canada. By the end of Q3, we had locked in a total of $13.8 million in acquisitions and we expect the fourth quarter to continue at the same pace as the previous quarters.

“Positive changes in the US economic climate will continue to allow us to take advantage of available commercial real estate that is undervalued. Over the coming years the steady strength in the economy will allow cap rates to compress in the commercial property sector. Along with this compression, rental rates will further be increased over time.”

– Narinder Seehra, Chief Executive Officer

As we enter the final quarter of 2016 (Q4 2016), we are filling the remaining investor availability on these excellent commercial real estate investment opportunities in Florida:

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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 Q3 2016

Leasing activity in Orlando, Florida continued to improve in the third quarter, with a year-to-date net absorption of 1.4 million sq. ft. and decreasing vacancy rates in the office sector.

A notable foreign investment in Florida came from the Canadian-based City Office REIT, which purchased The Research Park Collection comprised of five buildings located in the Central Florida Research Park for $49.8 million.

Population growth, strong consumer spending, and a thriving tourism industry are propelling demand in the Orlando retail market. Currently, 36 retail buildings are under construction for a total of 591,908 sq. ft.

The Orlando economy continues to expand from these strengthening economic fundamentals. The entertainment and high-tech sectors will sustain market growth and demand for office and retail space.

Q3 Vacancy Rates:

  • Office vacancy rates are 11.3%; down 470 basis points from Q3 2015.
  • Retail vacancy rates are 5.7%; down 80 basis points from Q3 2015.

Q3 Average Asking Rental Rates:

  • Office rental rates are $20.42 per sq. ft.; up $0.22 from Q3 2015.
  • Retail rental rates are $14.52 per sq. ft.; down $0.61 from Q3 2015.

Over the long-term, Orlando is poised to see notable economic growth due to key drivers and infrastructure projects that will boost business activity.

For a concise summary of the Central Florida market in the previous quarter (Q2 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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