What area is your expertise? Summit County, Ohio What trends do you see presently in retail development in your area? Change of use and or contraction of older areas due to demographic and economic changes. Example: Rolling Acres Mall – redevelopment into light industrial. What type of retail product is doing well in your area? Essentially high-end and discount retail stores. Williams-Sonoma, Coach, Build-A-Bear Workshop, Wal-Mart, Marc’s Discount Stores, Gabriel Brother’s and Big Lot’s. What retailers are new to your area? Aldo, Coach, Ann Taylor Loft, Coldwater Creek, Bravo Italian Bistro and P.F. Chang’s China Bistro and Five Guys Burgers. Who are the active retail developers in your area? Stark, Simon, Marchetta, Deville, Altman, and Developer’s Diversified. Please name one or two significant retail developments in your area. What impact will these projects have on the market? Summit Mall expansion, Fairlawn, Ohio — Developed by Simon: Bravo Cucina Restaurant, Ann Taylor Loft, Coldwater Creek and others. Wadsworth Crossing, Wadsworth, Ohio — Developed by Forest City: Anchored by Kohl’s, The Home Depot, Target, Bed Bath & Beyond, as well as a few specialty retailers. Arlington Ridge Market Place, Green, Ohio — Developer Deville: Anchored by Target and specialty retail: Alltel Wireless, …
Midwest Market Reports
What area is your expertise? For the purposes of this report we are discussing the Industrial Market in Akron, Ohio and the five counties surrounding it (Summit, Stark, Wayne, Portage and Medina counties). What trends do you see presently in industrial development in your area? We are in a stable market with softness in the industrial sector, primarily due to the credit crisis and overall skepticism in the marketplace beginning in 2008 to present. The greater Akron marketplace is made up of many older industrial buildings that were built by the rubber companies and other industrial giants such as the Hoover Company located in North Canton. Local and regional rehab developers have come into the marketplace and purchased these million-square-foot facilities and rehabbed them into multitenant, mixed-use type facilities. The attractiveness of these facilities is generally low-lease rates and the infrastructure that is already in place, making total occupancy cost lower than new construction. What type of industrial product is doing well in your area? Smaller industrial, newer buildings with land for expansion available on a purchase basis as a second or third opportunity from an ownership basis. Who are the active industrial developers in your area? Richfield, Ohio-based Realty …
What area is your expertise? Greater Grand Rapids, Michigan. What trends do you see presently in multifamily development in your area? From 2002 to 2007, we had a tremendous amount of condo construction. Those projects are finishing up and a few new projects are being announced. Several condo projects that were announced have been pulled due to insufficient sales. Apartment construction has been moderate over the past few years. A few new projects have broken ground this year. Student driven markets like Allendale (Grand Valley University) have seen consistent deliveries of new units the past several years — and more units will be added to the market in 2008. Condo conversion projects started in 2006 are still selling out. Who are the active multifamily developers in your area? Condos: Second Story Properties, Parkland Properties, McKay Tower Partners LLC, Moch International, Kegle Construction, Robert Grooters Development, Eastbrook Homes, Redstone, and Epcon Communities. Apartments: Miller Valentine Group, Hof Investment Group, IPA, Copper Beech, and Fusion Properties. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? River House Condominiums — Robert Grooters Development: 207 units, Downtown. Under construction, estimated completion date 4/2009. …
What area is your expertise? Industrial property in the Kansas City metropolitan area. What trends do you see presently in industrial development in your area? The emergence of large, big-box distribution centers (greater than 250,000 square feet) as well as the emergence of inland ports, which are logistic parks in close proximity to intermodal centers. Kansas City has traditionally been a market for users of smaller blocks of space, but this has changed over the past 5 years. Transactions greater than 250,000 square feet new to our market include companies such as Case New Holland, Pac Son, Kimberly Clark, and Musician’s Friend. Additionally, large industrial logistics parks are planned for the property adjacent to a new intermodal facility, which has opened in Southern Kansas City at M-150 and 71 Highway at the old Richards-Gebaur Airport, which is operated by Kansas City Southern Railroad. CenterPoint is the developer of this park. Additionally, other intermodal projects are underway in both Gardner, Kansas, and at the Kansas City Airport. What type of industrial product is doing well in your area? Class A distribution space greater than 50,000 square feet. Who are the active industrial developers in your area? Multiple local developers Please name …
What area is your expertise? Mid-Michigan, primarily the greater Lansing area. What trends do you see presently in industrial development in your area? Very soft. Some activity from small businesses and companies doing defense work for U.S. government. What type of industrial product is doing well in your area? 10,000 square feet and smaller Who are the active industrial developers in your area? Wieland-Davco and Dart Where is the majority of development taking place? Why is this area doing well? Delta Township due to the newer General Motors plant. What area do you expect to be the next big industrial development market? Why? Expansion of newer Delta Plant. If present car models sell well, they have plans to expand. Please describe the industrial leasing activity in your area. Some smaller and short-term leases. Please describe the industrial sales activity in your area. Very little and what there is, are prices below market. What impact do current interest rates have on the industrial market? What predictions do you have for interest rates and their effect on the industrial market in the next year? Lower interest rates help, but that alone will not be enough. What industries do you expect to expand …
What area is your expertise? The St. Louis Metropolitan Area What trends do you see presently in multifamily development in your area? Many of the St. Louis area developers are including residential components (both rentals and sales) in their developments. The desire to work, live and shop in the same area is desirable in the St. Louis region — from shopping, to office, to education, to entertainment. Who are the active multifamily developers in your area? Local office and retail developers are adding residential components to their developments. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? Clayton is seeing an increase in condominium construction as well as housing units becoming a part of retail and office developments. For example, Maryland Walk opened with 99 high-end condominiums and has added a retail component. The Crescent development includes 72 luxury condominiums and 26,000 square feet of retail. The $73 million, 390,000-square-foot project was developed by Mark S. Mehlman Realty. Where is the majority of development taking place? Why is this area doing well? Condo and apartment development and redevelopment are on the rise in the Central Business District as a …
What area is your expertise? Chicago Metropolitan Market What trends do you see presently in industrial development in your area? 1). A slowing in closing of sales and execution of leases. 2). A 1.3 percent rise in vacancy rates. Our Midway and South Cook County markets, however, have experienced the highest vacancy rates at 12.3 and 11.1 respectively. 3). Quarterly absorption in fourth quarter 2007 was a positive of 3.5 million square feet to first quarter 2008, which was a negative absorption of 2.5 million square feet. 4). Leasing activity has dipped 10 percent from same time last year. 5). Average sales prices have increased for Industrial product from $59.48 square feet fourth quarter 2007 to $61.81 first quarter 2008 even though sales during those two periods have dropped from 3,750,000 square feet to 3,250,000 square feet (first quarter 2008). Approximately 12 million square feet of projects are under construction at this time and much of the space has yet to lease to the first tenants. What type of industrial product is doing well in your area? Across the board: From 20,000 square feet to 1 million square feet, with a more rapid conclusion to sales and leases on the …
What area is your expertise? Multi-housing properties (rental only) and Central Midwestern markets. However, my answers here apply only to the Indianapolis area. What trends do you see presently in multifamily development in your area? There has been a shift in development activity from the south side of Indianapolis to the north side. Approximately 3,000 units are slated for completion through 2009 along the 146th Street corridor and surrounding areas in Hamilton County. With the recent extension and opening of 146th Street, development activity has intensified along this critical corridor. Who are the active multifamily developers in your area? Currently active: Flaherty & Collins, Pedcor Investments, J.C. Hart, Welbourne Companies, Herman & Kittle Properties, Edward Rose of Indiana and Sheehan Development. Prepared to resume development activity: Paragus, Gene B. Glick Co., and Hearthview Residential. What trends do you see presently in multifamily development in your area? Roughly two-thirds of our buyer base is coming from the East Coast. We have historically had East Coast capital but not significant levels. The heightened interest from coastal investors is due to a widely recognized rental market recovery and stable employment growth. Please name one or two significant multifamily developments in your area. What …
What area is your expertise? West Michigan Industrial What trends do you see presently in industrial development in your area? Very little speculative building, some absorption of previous manufacturing into multi-tenant redevelopment. What type of industrial product is doing well in your area? Stand alone 35,000 square feet to 75,000 square feet owner occupied. Who are the active industrial developers in your area? First Companies – Built-to-Suit Please name one or two significant industrial developments in your area. What impact will these projects have on the market? Ashley Capital redevelopment of the former Steelcase campus. Former large manufacturing buildings that are redeveloped into multi-tenant — 50,000 to 300,000-square-foot users. Where is the majority of development taking place? Why is this area doing well? Very little, along the M-6 Caledonia, available land for build to suit users. What area do you expect to be the next big industrial development market? Why? Airport area — typical area for growth in most markets. Please describe the industrial leasing activity in your area. Lease rates are flat with incentives, one month of free rent for each year of term. Too much inventory. Please describe the industrial sales activity in your area. Very little activity …
What area is your expertise? Retail leasing, sales, and development in Michigan. What trends do you see presently in retail development in your area? Retail development is stagnant at this time. However, there are several planned developments that will certainly become more viable when the local economy improves. What type of retail product is doing well in your area? Neighborhood Strip Centers. What retailers are new to your area? Tim Horton’s and several independent restaurants. Since the earlier part of the decade, we haven’t had much in the way of “new” traditional retail to the market. Who are the active retail developers in your area? Mostly local developers. The Gillespie Group, Strathmore Development and The Eyde Company. Please name one or two significant retail developments in your area. What impact will these projects have on the market? East Village near the MSU Campus in East Lansing. Currently in planning stages only and no tenants named at this point. Will encompass 250,000 square feet of retail, with a movie theater, a hotel, 100,000 square feet of office and both for lease and for sale residential units. Encompasses over 20 acres. Numerous planned projects around the Eastwood Towne Center but nothing definite …