Market Reports

Investment Activity in Cincinnati Commercial Real Estate Market Spikes

by Danielle Everson April 9, 2015

Throughout the economic recovery, real estate has been investors’ preferred asset class in the Cincinnati region and across the United States. Although the Federal Reserve is likely to raise short-term interest rates in June or September, demand for commercial real estate is expected to remain strong as long as the recovering economy continues to create new demand for commercial space. According to Real Capital Analytics, 2014 finally saw total U.S. sales volume and property prices (at the aggregate level) reach pre-recession levels. In fact, Real Capital Analytics reports that excluding portfolio sales, activity was higher in 2014 than in 2007. Investment Sales Surge Metro Cincinnati’s property and portfolio sales in 2014 totaled more than $2.3 billion across all major real estate sectors, a 53 percent increase over 2013. It was, by far, the strongest year for investment activity in recent memory, with significant increases across all property types. For the second straight year, retail sales transactions led the way locally among all property types. Retail sales volume in 2014 exceeded $600 million, $370 million of which occurred in the fourth quarter. Office property and portfolio sales in Cincinnati totaled nearly $580 million in 2014. This figure was a 162 percent …

April 9, 2015

Market Reports Massachusetts Multifamily Northeast Northeast Market Reports

Developers Capitalize on Trends in Boston’s Apartment Market

by Jaime Lackey April 8, 2015

Young professionals are flocking to Boston to find higher-paying jobs generated by fruitful healthcare and technology industries. Pharmaceutical companies like GE Healthcare, Amgen and Novartis AG are expanding in Boston and Cambridge. In addition, professional, business services, education, and health services sectors have all surpassed pre-recession employment. In 2015, companies in Boston are projected to create 43,000 new jobs, which is a 1.7 percent annual increase. The increased pace of hiring will support household formation and elevate the area’s housing demand. The Greater Boston region is experiencing one of its largest residential building booms in recent history. Most of the area’s proposed and under-construction residences are apartments and many of them are on the luxury end, including the Ink Block and Troy Boston on the South End, and the Zinc in East Cambridge. Multifamily inventory will expand 1.6 percent this year, resulting in a total delivery of 7,250 new units. Many potential homeowners will choose renting over buying as more and more potential homebuyers prefer short commute times and the lifestyle that renting offers — a growing trend across many of the country’s major metros. Nationwide, apartments outperformed expectations for 2014. The national vacancy rate dipped as low as 4.2 …

April 8, 2015

Market Reports Nevada Office Western Western Market Reports

Las Vegas Office Market Recovery Gains Momentum

by Nellie Day April 7, 2015

The Las Vegas office market continues to recover and stabilize, capping off 2014 with the 12th consecutive quarter of positive net absorption. Initially slow to recover following the recession, the area’s rebound has recently quickened. The market has an unemployment rate of 7.1 percent, with 2014 being the first year since 2008 to see a rate below 8 percent. Office-related jobs represented 20 percent of the workforce, second only to hospitality, proving the office market is an important part of the area’s growth and vitality. Class A office space along the I-215 Beltway currently shows strong activity. Las Vegas is home to two suburbs that historically were among the fastest-growing communities in the nation: Green Valley in the southeast and Summerlin in the west. Initially built as a means to connect the populations of these communities, the Beltway now extends around the city, connecting to I-15 in the northern valley. Notable recent developments along the Beltway include Krausz Companies’ and WGH Partners’ Gramercy, a mixed-use office, retail and multifamily project in the southwest that added 175,000 square feet of Class A office space in the third quarter of 2014, and The Howard Hughes Corporation’s Downtown Summerlin, a mixed-use project that …

April 7, 2015

Market Reports Southeast Market Reports

Public and Private Partnerships Prove Positively Productive for Memphis Retailers

by John Nelson April 5, 2015

By the numbers, 2014 was a pretty good year for the Memphis retail market. With over seven million square feet of rentable retail space, the overall vacancy rate decreased roughly one percent since the end of 2013 while rental rates were relatively flat. Not bad. Not great either. It is important to note, however, that Memphis retail is not classified into A, B and C properties like their office and industrial counterparts, so we don’t often get an accurate snapshot of the market’s product availability. The truth is that Memphis is simply running out of space – desirable Class A space, that is. Because of this lack of available product, new construction is once again on the rise, as is redevelopment of existing structures within the city’s urban core. The good news doesn’t stop there. The willingness of local government entities to support development progress has proven to be instrumental to some very key wins for the Memphis MSA. This January, Tanger Outlets, a major player in the outlet mall industry, confirmed that it would partner with Poag Shopping Centers to develop a 310,000-square-foot outlet center in Southaven, Mississippi. Southaven and DeSoto County officials approved a $15 million tax increment …

April 5, 2015

5-Below-BBB-World-Market-in-Phase-II-Central-TX-Marketplace

Market Reports Retail Texas Texas Market Reports

Waco’s Retail Marches Down I-35, and Texas Takes Notice

by Haisten Willis April 3, 2015

In stark contrast to past years when motorists would fly through Waco on I-35 wondering if anything was happening in this town, the dramatic Twin Signature Bridges across the Brazos River now sit majestically with the backdrop of Baylor University’s brand-new, $325 million McLane Stadium. However, it has become abundantly clear that the stadium is not the only big thing happening in Waco. Anyone who has driven the stretch of I-35 that passes through Waco in the past 24 months has undoubtedly noticed quite a bit of new construction, demolition and site clearing for even more commercial construction. Leading the way is the dramatic increase of national restaurants and retailers that have made their presence known to everyone who used to drive right through, but who now stop, eat and shop in Waco. A primary catalyst of this rise in retail activity has been the release of property along I-35 formerly owned by the Waco Independent School District (ISD). “We witnessed a surge in demand for retail sites along the I-35 Corridor in 2013,” says Jim Peevey, CCIM, a local broker with Central Texas Commercial. “My partner, Andy Sheehy, and I represented Waco ISD in selling three surplus properties on …

April 3, 2015

Industrial Market Reports Southeast Southeast Market Reports Tennessee

National, International Users are Transforming Memphis Industrial Market

by John Nelson March 30, 2015

Memphis has acquired many nicknames since its establishment in 1819: Blues City, Birthplace of Rock ‘N Roll, and Bluff City just to name a few. However, one name that has managed to work its way to the top of the list in recent years is America’s Distribution Center. Metropolitan Memphis, located in the southeast corner of Tennessee, northwest Mississippi and eastern Arkansas, contains approximately 4,598 square miles and is inhabited by approximately 1.3 million people. As one of the few MSAs to include three states, the Memphis region plays an integral role as the cornerstone of the Mid-South area. With a central location and rich transportation infrastructure, Memphis transformed into the regional and national distribution and logistics hub. Memphis’ transportation infrastructure is comprised of the four Rs: runway, rail, river, and road. Memphis International Airport was named the largest air-cargo airport in the United States for 18 consecutive years. It is now tied for first in the world with Hong Kong International Airport. Memphis is one of only three cities in the US that has five of the seven Class I railroads: Union Pacific/Southern Pacific, Burlington Northern Santa Fe (BNSF), CSX Corp., Norfolk Southern and Canadian National Railroad (CN). The …

March 30, 2015

Market Reports Retail Texas Texas Market Reports

Medical Sector, Eduation Push Economic Development in Tyler

by Haisten Willis March 30, 2015

The commercial real estate market in the Tyler metropolitan area experienced one of its best years in 2014. Led by the retail sector, a number of new leases and sales brought a bevy of businesses to the market. The city of Tyler has a population of around 100,000, while the metro area contains 222,000. Tyler is the retail and medical center of northeast Texas, with a trade area population of 415,000. The city experienced strong population growth of 15.8 percent from 2000 to 2010. The Tyler economy is fueled by the medical sector, which accounts for 20 percent of all employment. Trinity Mother Frances hospital employs 4,000; East Texas Medical Center accounts for over 3,200 jobs; and the University of Texas Health Center at Tyler has total employment of 865. Because of the outstanding medical facilities in the city, patients from a 14-county area come to Tyler for medical care. Another strong driver for the local economy is the existence of higher education opportunities. The University of Texas at Tyler continues its strong growth, boasting a total enrollment of more than 6,400, while Tyler Junior College serves 35,000 students. Both of these schools are expanding. UT Tyler’s engineering school has …

March 30, 2015

Market Reports Nevada Retail Western Western Market Reports

Record Visitors Boost Retail in Las Vegas

by Nellie Day March 24, 2015

It is great to be in Las Vegas and witness the city’s strong recovery from the economic lows of a few years ago. Exciting projects like the $500-million LINQ entertainment and retail promenade, the 1.6-million-square-foot Downtown Summerlin lifestyle center and the market’s first IKEA, now under development, are filling the region with promise. Las Vegas added more than 25,000 jobs between 2013 and 2014, a 3.3 percent increase, representing the third highest growth rate in the country during that time. As opposed to the previous economic boom that was largely driven by construction growth, the job growth in this recovery has been evenly spread across several sectors like general services (retail), professional/business, education, healthcare and leisure/travel. Las Vegas also hit a milestone in 2014 when it reached a record-setting 41.1 million visitors for the year. Those visitors included 5.2 million conventioneers, the highest total since 2008. As the Las Vegas economy continues to expand, retail is leading the pack with taxable sales that have already increased an astounding 29.4 percent from the recession low, including an 8.1 percent year-over-year increase in the past 12 months. Total taxable spending in the region is near its highest levels in history, reaching $36.2 …

March 24, 2015

Market Reports Multifamily Southeast Southeast Market Reports Tennessee

Strong Job, Population Growth Drives Flourishing Multifamily Market in Nashville

by John Nelson March 23, 2015

Nashville has quickly become one of the most active Southeast markets for multifamily, both in terms of development and sales. Driven by tremendous job growth, strong population increases, a pro-business climate and an educated workforce, Nashville’s remarkable multifamily growth is not overstated. From 2014 to 2017, more than 12,300 units are projected to enter the market, with another 9,000 that are planned or proposed. Concerns have arisen that Nashville’s supply will outpace the demand in the medium term. However, job growth indicators, sales activity and lease-up velocity indicate the contrary. Nashville’s economy has surpassed the $100 billion mark with a 5.1 percent unemployment rate and a 4.2 percent GMP growth rate that is double that of the rest of the nation. Notable recent expansions include General Motors (1,800 jobs), Under Armour (1,500 jobs), Magna International (357 jobs), and FedEx (347 jobs) — all of which were announced in the second half of 2014. In addition, Bridgestone America has announced that it will consolidate its operations in Nashville adding 600 jobs. These expansions combined with immense foreign direct investment continue to fuel the area’s growth. According to IBM’s 2014 Global Location Trends Report, Tennessee ranks first in the nation in terms …

March 23, 2015

Market Reports Texas Texas Market Reports

Downtown Midland Exploding with New Projects, Renovations

by Haisten Willis March 20, 2015

Midland’s name was called four times at the Texas Downtown Association Presidents’ Awards luncheon during the organization’s 2014 Annual Conference in Granbury. Four finalists and two winners emerged from the six nominations submitted by the City of Midland Downtown Development Department. The two winners were the Midland Chamber of Commerce’s Star Spangled Salute, which tied with Bryan for Best Promotional Event for a population over 50,000, and Midland Tower for Best Restoration for a population over 50,000. The Downtown Midland Management District was a finalist in the category of Best Downtown Partner for outstanding contributions to preserve, revitalize and redevelop Texas downtowns. Basin Burger House was a finalist in the category of Best Renovation/Rehabilitation, recognized for excellence in the rehabilitation of the interior and/or exterior of an existing building. The developer for Basin Burger House recently broke ground on another retail development approximately 25 yards to the west. The number of future potential nominees for the Presidents’ Awards increases as the commitment to the revitalization of downtown Midland builds momentum. Fueling this resurgence is a combination of private and public interests. Several projects recently received favorable responses from the Downtown Midland Management District, the Midland Tax Increment Reinvestment Zone and …

March 20, 2015

Newer Posts

Older Posts