Market Reports

Retailers on the Rise in Grand Rapids Market

by Kristin Harlow November 14, 2019

It’s no secret that Grand Rapids is one of the fastest growing cities in the United States. Grand Rapids and its surrounding suburbs led much of Michigan’s population growth last year and have been continuously recognized by national surveys. Two studies conducted by WalletHub in late 2018 and early 2019 ranked Grand Rapids in the top 10 percent of cities analyzed as having one of the fastest growing economies and also ranked it in the top 30 percent of markets studied as being one of the best places to find a job. While it’s obvious that this growth in population and availability of jobs has been the key driver behind the increase in new multifamily developments, it has also had a major influence on the retail sector. From national restaurant chains and retailers to new local food and beverage concepts, key performance indicators such as low vacancy rates and increased rental rates are moving in a positive direction for the Grand Rapids commercial retail market. What retail apocalypse? These days, news articles related to retail properties across the nation may lead to a state of depression due to closings of big box and chain stores that have been unable to …

November 14, 2019

Market Reports Massachusetts Northeast Northeast Market Reports

Boston’s Exceptional Fundamentals Continue to Fuel Higher Land Values

by Taylor Williams November 13, 2019

With a large influx of some of the world’s best and brightest residents, Boston has evolved from a regional powerhouse into one of the world’s foremost innovative cities in less than 10 years. Boston is both the second-oldest and the third-densest major city in the United States, and since its founding 389 years ago, the city has experienced super-charged growth, urbanizing faster than almost all its peers. Because of that unprecedented growth, undeveloped parcels in desirable areas across the city are scarce, and developers are being forced to use creative ways to build through urban infill, reclamation and placemaking. Seaport: A New Hotbed The Seaport has become Boston’s designated area for office market growth. The Fallon Company, WS Development, Skanska, Tishman Speyer and Pembroke have all made their marks in this neighborhood by transforming surface parking lots into gleaming towers filled with office workers, residents and retailers. Companies like Alexion Pharmaceuticals, Foundations Medicine, Goodwin, PTC, PwC, Reebok, State Street and Vertex have responded by moving significant operations to this highly dynamic neighborhood. Not surprisingly, when Gillette decided to put 6.5 acres of excess waterfront land on the market, developers recognized the opportunity and responded accordingly. Related Beal purchased the site …

November 13, 2019

Georgia Market Reports Mixed-Use Southeast Southeast Market Reports

South Downtown Atlanta is on Fire (Again) with $10B in New Developments

by Alex Tostado November 13, 2019

In 1864, General William T. Sherman burned Atlanta to the ground, including the area around the Zero Mile Post marking the terminus of the Western & Atlantic Railroad. Now, 155 years later, South Downtown is on fire again but this time, it is as one of the hottest development submarkets in the Southeast. With the still-active downtown rail yards at its center, more than $10 billion in new development is either completed, under construction or in the planning stages. This “Downtown Ring of Fire” stretches from Centennial Olympic Park and Mercedes-Benz Stadium to Castleberry Hill and over to Underground Atlanta. The project SSG Realty Partners recently brought to market, Artisan Yards, is a 9.9-acre site at the intersection of Ted Turner Drive (historic Spring Street) and Whitehall Street. It is currently the headquarters of Gourmet Foods International, which has outgrown the property and is relocating to a new facility. The primary catalyst for this significant new development momentum is the $1.6 billion Mercedes-Benz Stadium, home of the Atlanta Falcons and the 2018 MLS Cup champions Atlanta United. The $192 million renovation of State Farm Arena and the $25 million expansion of Centennial Olympic Park were also critical in creating the …

November 13, 2019

Market Reports Office Texas Texas Market Reports

Office Amenities Influence Talent Wars in Texas

by Taylor Williams November 12, 2019

Office buildings that have been newly constructed or recently rehabilitated are fielding the greatest demand from large companies, which are banking on the idea that lifestyle-enriching amenities and a vibrant surrounding neighborhood create advantages in attracting and retaining talent. According to the Bureau of Labor Statistics, during the 12-month period ending in July, the four major office markets of Texas added more than 200,000 new jobs combined. The state’s unemployment rate was 3.4 percent at the time of this writing, 30 basis points below the national average. The job market clearly favors applicants, and the competition between major office-using companies to secure the best applicants is fierce. Of course, some job seekers still base their employment decisions based on traditional factors like salary and commute time. But all other factors being held equal, employees with multiple job offers are placing greater emphasis on what kind of working environment they can get with one employer versus another. “It’s all about what amenities a building can offer to its tenants,” says Jackie Marshall, first vice president in CBRE’s Dallas office. “Many tenants are willing to pay more to be in buildings that help them recruit and retain talent, and amenities that make …

November 12, 2019

Florida Market Reports Office Southeast Southeast Market Reports

Corporate and Economic Growth in Miami Drive Tenant, Investor Demand for Office

by Alex Tostado November 11, 2019

Miami continues to be a top-ranked commercial real estate market in the Southeast United States. As the economy gears up to enter its longest expansion period in U.S. history, Miami has shown more resiliency than other South Florida markets, recording steady gains in absorption, robust leasing activity and modest rent growth. Economic fundamentals remain strong as job growth continues to fuel Miami’s office market with the unemployment rate trending down to 3.2 percent. Miami’s unemployment rate reached the lowest point in its history, falling to 3 percent in April 2019. The fundamentals in economic growth continue to support corporate expansion in nearly every industry as well as new-to-market growth from other U.S. markets and globally. While in the past, most of Miami’s growth came from Latin America, 60 percent of new-to-market growth now comes from Europe, with Spain being a frontrunner. High demand amid deliveries Miami-Dade County’s overall office vacancy rate rose slightly by 1 percent in the past 12 months, during which time 937,919 square feet of new office space was delivered to the market. More than 500,000 square feet was absorbed during that time. Because of the strong absorption, the vacancy rate was impacted only slightly, bringing it …

November 11, 2019

Market Reports Multifamily Nevada Western Western Market Reports

Reno’s Multifamily Market Continues to Rise on Employment, Relocation

by Taylor Williams November 8, 2019

If you try to find an apartment in Reno you’ll quickly realize this isn’t necessarily an easy task. Reno has experienced more than 8 percent rent growth year over year for the past four years. Average rents in the third quarter were $1,174 per month with vacancy at 4.5 percent, according to CoStar. These escalating numbers are due to employment. The Reno-Sparks MSA has grown by 59,700 jobs in the past 10 years, according to the Bureau of Labor Statistics. The Tesla Gigafactory was just the beginning. Google, Apple and Switch are among others that have moved in, bringing thousands of jobs with them. Businesses still like the friendly tax environment, clean air and high quality of life. But while we were adding all those jobs, the number of apartment units added during that time was just 3,802, CoStar notes. Look around and you will see apartment construction everywhere in Reno. Most is on the outskirts of town where larger land parcels are still available. This includes Sparks, Lemmon Valley, Spanish Springs and South Reno. A few more central infill sites are making headlines. Park Lane by Reno Land Inc. is in the process of adding 1,700 units in the …

November 8, 2019

Market Reports Multifamily Texas Texas Market Reports

Competition Floods Class B Multifamily Space in DFW

by Taylor Williams November 8, 2019

The unprecedented job and population growth that Dallas-Fort Worth (DFW) has experienced during this cycle has brought a plethora of new buyers to the Class B multifamily space, and the simple economics of high demand and low supply are re-shaping the landscape of the investment market. According to CoStar Group, the average price per unit in the Class B space has increased by 4.3 percent year-to-date, and deal volume on sales of Class B assets is down from 2017. These trends attest to the strong impact price escalation has had on the market. A more crowded buyer pool is also breeding competition and pushing prices upward. The metroplex’s growth cycle dates back to the beginning of the expansion. Data from the U.S. Census Bureau shows that between 2010 and 2018, the metroplex added about 1.1 million people, or 122,000 per year. Earlier this year, Cushman & Wakefield released a report stating that DFW added approximately 754,000 jobs between 2009 and 2018, or 75,000 per year. This convergence has significantly boosted apartment demand in the metroplex, ushering in waves of competition for older multifamily assets, many of which are positioned for value-add investment and subsequent rent bumps. Price escalation caused by …

November 8, 2019

Market Reports Michigan Midwest Midwest Market Reports Mixed-Use

Why Invest in Grand Rapids: Lifestyle, Job Market and Affordability

by Kristin Harlow November 7, 2019

While most national investors and developers focus on larger Sun Belt and coastal markets such as Austin, Atlanta, Nashville and Phoenix, Time Equities has had great success investing in Grand Rapids and continues to believe strongly in the future potential of the area. As an opportunistic company, we often go where others do not, looking for markets and assets with strong risk-adjusted returns. Grand Rapids provides such an opportunity. The small city has been ascendant for the past decade and has a bright outlook. Its population and job growth equal many of the fastest-growing markets in the Sun Belt. Its economy is bolstered by large medical and education employers supported by impressive charitable contributions from the region’s wealthy families. In addition, the city also boasts a diversified economy with manufacturing, breweries and white-collar employment. And most importantly, it’s home to a burgeoning young and educated workforce. Grand Rapids’ combination of lifestyle, job market and affordability make it a regional draw. Grand Rapids experienced population growth of 41 percent from 2010 to 2017, compared with 22 percent for the Nashville metro area and 19 percent for the Dallas metro area. This growth was aided by a net migration of 31,285 people. …

November 7, 2019

Affordable Housing Market Reports Multifamily Northeast Northeast Market Reports

Affordable Housing Benefits Communities As Well As Residents

by Taylor Williams November 6, 2019

For the past 10 years, Walters has been creating premium affordable housing that is 100 percent income-restricted and sustainable. The company has delivered a dozen developments throughout New Jersey, and several more are currently under development. The positive benefits and lasting effects of affordable housing impact both the residents living in the homes as well as the communities in which they are located. Each year, more people struggle to afford living in the communities where they work because of a lack of affordable housing stock. Even older adults who have lived for decades in a community have few opportunities to downsize. Many young adults who want to raise their own families in the communities where they grew up cannot afford “starter homes” today. Affordable housing, however, enables people to live where they choose based on their needs and aspirations. A Princeton University study of affordable housing development in Mount Laurel, New Jersey, found numerous benefits: Families moving into high-quality affordable housing experience a safer neighborhood, lower crime rates, better mental health, strong rates of employment and higher wages. By saving money on rent, families can spend more of their household incomes on essentials such as food and healthcare. The study …

November 6, 2019

Alabama Industrial Market Reports Southeast Southeast Market Reports

Birmingham Industrial Market Poised for New Projects with Record Low Vacancy

by Alex Tostado November 4, 2019

The surge in demand for Birmingham’s industrial real estate over the last few years has resulted in the highest occupancy rates in over 20 years. Alabama’s level of business friendliness has created a strong economy and high level of job growth since the end of the Great Recession. Manufacturing is a key driver of job growth. Overall vacancy rates in Birmingham’s multi-tenant industrial market have fallen to around 7 percent, which is an all-time low. Average rental rates have crept up to approximately $4.25 per square foot, which is historically high for Birmingham but still significantly lower than rents in larger markets around the Southeast. In spite of the robust activity, there are no active plans for any sort of speculative multi-tenant developments in the market. The last project was the 90,000-square-foot Oxmoor Logistics Center located in the Oxmoor Valley submarket, which was completed in the fourth quarter of 2018. It is currently 100 percent occupied. However, there are over 2 million square feet of individual projects that will be completed before the end of 2019. One is a $1.3 billion expansion at the Mercedes-Benz Tuscaloosa plant, which includes a new body shop, enhancements to the SUV assembly shop and …

November 4, 2019

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