Is there enough supply of Investment property in the commercial real estate market to meet investment demand?
Tony Miltenberger, Kidder Mathews: There is ZERO supply (on the market). Things are continually being purchased off market and when things do get brought to market, institutions are lining up with multiple offers. Institutions keep looking at smaller and smaller deals, which pushes the local investor to the submarket, as they cannot compete.
Brian Bruininks, The Andover Co.: No. It is very difficult to purchase here and quality assets don't turn over very often.
Are investment dollars flowing to industrial properties across the board, or toward a specific subset of properties?
Tony Miltenberger, Kidder Mathews: Class A & B that is functional, that has quality existing tenants or that will lease up quickly.
Brian Bruininks, The Andover Co.: The industrial property type of choice on the front end of the cycle was definitely the newer big-box distribution center. However, as the market has continued to tighten, mid-size business parks, functional free-standing buildings and quality manufacturing facilities have also gained traction. Some investors have turned towards development to add to their Seattle industrial footprints and/or have turned to developers to either joint venture projects or pre-commit development capital.
Where do you expect to see investment dollars coming from?
Tony Miltenberger, Kidder Mathews: First, the U.S., then Canada, then China, then Australia.
Brian Bruininks, The Andover Co.: Largely from pension funds and REITs (real estate investment trusts).
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