Members of the industrial real estate sector will gather for NAIOP’s I.CON 2016: Industrial Real Estate Trends and Forecasts conference on June 9 through 10 at the Hyatt Regency in Jersey City, New Jersey.
HFF Senior Managing Director Rusty Tamlyn, SIOR, is one of several industry experts speaking at the conference. He will be joined by two other leading commercial real estate brokers for a panel exploring “The Capital Investment Climate,” which, according to NAIOP, includes the impact of the broad consolidation trailing 18 to 24 months that investors are seeing and the impact that will have over the next two years, what is happening with capital for Class A versus Class B assets, allocated capital for development versus capital for acquisitions and the North American investment landscape.
Tamlyn, a Senior Managing Director in HFF’s Houston office with more than 35 years of experience in commercial real estate, has his finger firmly on the pulse of the current industrial market and how it effects sellers and buyers.
“Buyers are underwriting market rent well above the rates seen on most rent rolls, especially in markets where asking rental rates are still off peak levels,” Tamlyn said. “If rents are off by 15 to 20 percent, buyers are underwriting four to six percent rental rate growth – that is, assuming, rental rates will return to peak levels within two to three years.”
According to the Urban Land Institute’s Emerging Trends in Real Estate, the Houston market is 30th on the list of markets to watch in terms of overall real estate prospects, falling from number one the previous year, possibly due to a combination of concern over the decrease in oil prices and how much development is happening and planned in the area, but, nationally, and especially in secondary markets like Austin, Charlotte, Denver, Nashville and Raleigh, the outlook is more positive.
“Investors continue to chase yield in the secondary markets,” Tamlyn continued. “Bid fields have reduced but pricing has not been impacted. Due to length of current economic cycle, investors are de-risking.”
According to NAIOP, conference highlights include:
Tamlyn’s panel, which will be moderated by Mary Land, Senior Vice President at Prologis, Inc., begins at 11:10 a.m. on Friday, June 10.
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP comprises 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
I.CON: Trends and Forecasts is held in partnership with NAIOP New Jersey and The Society of Industrial and Office Realtors (SIOR).
HFF is one of the top-producing capital markets intermediaries in the country for industrial assets having closed more than $30 billion in over 1,700 transactions since 1998. We have 112 industrial specialists who are experts in providing construction, interim and permanent debt alternatives, as well as equity placement options including joint ventures, participating debt and mezzanine financing structures, ground-up development capitalization, and the traditional out-right sale alternatives. The firm has experience in securing transactions for all types of industrial assets including bulk warehouse, flex, R&D, manufacturing, cold storage, and telecommunications.
In his current capacity as senior managing director in the Investment Sales Group, Rusty Tamlyn is responsible for office, retail and industrial sales on behalf of private and institutional clients in the southwest U.S. Throughout the course of his career, Mr. Tamlyn has completed in excess of $12 billion in sales.
Mr. Tamlyn joined HFF in 2006. Prior to that, he was a Principal and Managing Director in the Capital Markets Group at Trammell Crow Company. Prior to joining Trammell Crow Company, he was a Senior Director at Cushman & Wakefield. Mr. Tamlyn began his career as a broker at CB Richard Ellis in 1978.