What area is your expertise? Reno/Sparks, Nevada What trends do you see presently in retail development in your area? We are seeing an increase in vacancy rates in both anchor spaces and in-line shops, as some existing tenants are vacating. What type of retail product is doing well in your area? As in most areas, Costco, Sam’s, Wal-Marts, and Dollar Stores are seeing increased sales. Sales have shifted to retailers with perceived value. Subway’s has also reported increased sales with their $5 sub sandwich promotion. What retailers are new to your area? Dillard’s, Cabella’s, Scheel’s and RC Willey. Who are the active retail developers in your area? Lewis Operating, Red Development and Bayer Properties. Please name one or two significant retail developments in your area. What impact will these projects have on the market? Damonte Ranch Town Center developed by Lewis Operating. The center is anchored by The Home Depot, Office Depot and RC Willey. The center has additional anchor space available. It is located in south Reno east of U.S. 395 at Steamboat and Damonte Ranch Parkway. This center is located in the middle of a master-planned community that will have over 15,000 homes in the immediate area when …
Market Reports
What area is your expertise? St. Louis County, Missouri — specifically the Chesterfield submarket. What trends do you see presently in office development in your area? In this submarket, vacancy is declining and new buildings are under construction with more being planned. Who are the active office developers in your area? MPD Development, Duke Realty, OPUS and Sachs Properties. Please name one or two significant office developments in your area. What impact will these projects have on the market? Valley Trails Center at 17401 North Outer 40 Drive, Chesterfield, MO 63005. Three 66,000-square-foot office/medical buildings (planned for near future). Located on Interstate 64/Highway 40 with great access from Boone’s Crossing interchange. Buildings will include balconies and have excellent visibility from the interstate. Adjoins a 26 mile trail system. Developer is MPD Development. Where is the majority of development taking place? Why is this area doing well? West St. Louis County due to access and strong demographics. What area do you expect to be the next big development market? Why? Development will continue in West St. Louis County/ Western Chesterfield area due to available land. What areas are doing well in terms of office leasing? Which areas are struggling with office …
What area is your expertise? Phoenix Metropolitan Area What trends do you see presently in multifamily development in your area? As construction on the first phase of the Phoenix light rail system wraps up, we’re seeing a major trend towards mixed-use projects with multifamily housing with commercial space along the line’s route from Central Phoenix to Tempe and Mesa. Developers are also targeting the renters-by-choice market by building upscale apartments that offer high-end amenities and finishes. Who are the active multifamily developers in your area? Alliance Residential, Embrey, Fairfield Residential, Trammell Crow Residential, Gray Development, Mark-Taylor, Greystone, Trillium Residential, and the Zaremba Group. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? CityScape — RED Development and CDK Partners are building this $900 million, 2.5 million-square-foot project in downtown Phoenix. CityScape will feature 1,200 multifamily units, along with a 600,000-square-foot office tower, shops, restaurants, and a 250-room hotel operated by San Francisco-based Kimpton Hotels & Restaurants. Office tenants already committed to the project include Wachovia (regional headquarters) and Squire, Sanders & Dempsey LLP (global law firm). This project is currently supporting more than 3,000 construction jobs, and on-site employment …
What area is your expertise? For the purpose of this report I will be discussing the office market in and around Akron. What trends do you see presently in office development in your area? Akron has historically been a fairly conservative and stable office development market. Fortunately, this has meant that our area has not fallen in the trap of being over developed like a lot of cities experience in a market downturn. However, as we’ve experienced in the past down markets, those tenants that are making moves are expecting and getting rental concessions, increased tenant improvement allowances and very attractive rental rates. We’ve also experience a substantial increase in locally owned businesses opting to either build or buy their own office space which is due to the attractive mortgage rates and sale prices. Who are the active office developers in your area? In the 35-plus years that I’ve been in the office/industrial real estate business, I have not seen as many major expansion projects announced as I’ve seen in the past 18 months in our area. These projects will undoubtedly help bolster the Akron economy and help spur additional growth, or a trickledown effect as some would choose to …
What area is your expertise? Our team’s expertise is the industrial real estate market primarily in Western Washington along the Interstate 5 corridor. We also work nationally for clients who are expanding into other areas either for site/space acquisitions or investment opportunities. What trends do you see presently in industrial development in your area? Currently there is no speculative development occurring in our area. Sites of interest would be infill sites in mature markets and rail-served sites. Risk is being priced back into the market with a significant pricing spread being evident between Class A and Class B properties — something we did not see during the high point of this past real state cycle. What type of industrial product is doing well in your area? Business parks accommodating the smaller to medium size users are doing relatively well. In addition, properties located near or in Seattle are doing well. The Kent Valley, due to its close proximity to Seattle and being composed or primarily business parks, is experiencing a decline in vacancy rates. In addition, rail served sites are a desirable commodity. Who are the active industrial developers in your area? Active national developers include: Panattoni, First Industrial, Opus, …
What area is your expertise? Industrial leasing and sales in the Northern Nevada area, including Reno, Sparks, Fernley, and Carson City. What trends do you see presently in industrial development in your area? Abatement of planned buildings while developers wait for speculative big-box construction to absorb. What type of industrial product is doing well in your area? Industrial condos have seen an increase in sales due to some aggressive owners acknowledge current market conditions and dropping prices. Concerning leasing, the 20,000 to 40,000-square-foot sector has been relatively active in big-box industrial spaces. Who are the active industrial developers in your area? Prologis, Panattoni, DP Partners, McShane, Tarragon, UPC, and Development Arts. Please name one or two significant industrial developments in your area. What impact will these projects have on the market? The addition of several new developers building speculative big-box construction has created a new dynamic in the Northern Nevada industrial market. The short-term impact has created a significant increase in overall vacancy. The long-term outcome remains to be seen, but optimistically may create healthy competition among developers luring new prospects to Northern Nevada. The disposition of the Panattoni Industrial Portfolio, a 2.02 million-square-foot portfolio consisting of seven buildings in …
What area is your expertise? We primarily focus on office properties located in the Reno/Tahoe region of Northern Nevada, as well as some outlying areas. The Northern Nevada office market is defined as Reno/Sparks as far north as Spanish Springs and as far south as Mt. Rose Highway, HW 431. Our expertise mainly lies within the seven submarkets in the Reno/Sparks market: South Meadows (89521), Meadowood (89511), Central Reno (89509), Airport (89502), and Downtown Reno (89501). We also track West Reno (89523) and Sparks (89431, 89436) What trends do you see presently in office development in your area? We have seen a tremendous slowdown in new office development over the past 2 years. The booming economy of yesteryear produced an abundance of office space that has outpaced the economic demands of the market. Direct results of this overbuilding are the inflated vacancy rates and a standstill for new development. Most of the office development occurring comes in the form of existing building redevelopment and renovation. Much of this activity is occurring in Downtown Reno where the downtown Reno redevelopment district provides incentives for redevelopment through flexible zoning and tax incentives, therefore allowing developers to achieve a highest and best use …
Despite being just south of Philadelphia, Delaware continues to maintain its presence in the New England market and its own identity. After a very active period from 2005 to 2007, office development in Wilmington’s central business district (CBD) is now taking a breather. The last project finished, the Renaissance Center at 4th and King streets, still has significant vacancies. The suburban market has also slowed, and new developers are taking a wait-and-see approach before speculatively breaking ground on new projects. This current slowdown in market activity is attributable partly to the market and partly to the usual summer slump. The slowdown has brought overall vacancy rates to 17.1 percent for Class A and B office product, including sublease space. The Wilmington CBD comes in with the highest rate at 20.5 percent (Class A and B, including subleases), while western New Castle County posts a rate of 6.2 percent, an anomaly compared to the other submarkets that lean more towards the CBD’s rate. Currently, rents for Class A space in the CBD can run from the low $20s to low $30s per square foot. Suburban rents for Class A space are equivalent, ranging from the low to high $20s. Leasing may …
The Pacific Northwest’s regional economy remains strong even after being impacted by the national and global economic trends. Unemployment is up to 5.3 percent in the region. Housing sales have also slowed, however, sales prices have increased slightly. Most retailers’ sales have increased although across-the-board sales have been flat, since auto and furniture sales are down, due to rising fuel prices and fewer home sales, respectively. Questionable shopping center projects are now being placed on hold or have become staged developments, while well located, designed and tenanted centers are going forward. Well-placed neighborhood centers continue to be planned and developed, though some neighborhood centers have been impacted by Wal-Mart Supercenters and Winco Foods, causing nearby grocers to close or reposition. This has resulted in large vacancies in a few neighborhood centers. Regional and community centers have also seen a few more vacancies, which has caused some retailers previously suffering from poor sales to close stores, while others are taking a more cautious approach to expansion. National retail apparel chains have slowed, bypassing most community center opportunities. Regional malls continue adding lifestyle components. At Southcenter in Tukwila, Washington, a second lifestyle component could be added to the north side of the …
The Albuquerque metro is maintaining a steady retail market. Keys to this steadiness include year-over-year positive job growth, consistent population expansion, low unemployment and a measured expansion of retail inventory since 2000. On the other side of the coin are two items of concern: some flatness in retailer sales figures and retailers being impacted by their stores in other marketplaces outside the Albuquerque metro. Albuquerque’s retail sector of 27.28 million square feet (measured from buildings equal to or exceeding 10,000 square feet in size) has posted a vacancy rate of 7.8 percent across all product types, down from 8.1 percent last year. Asking rents for new construction shop space are $20 to $28 per square foot per year NNN. In the Cottonwood Mall and Uptown submarkets, top spaces are in the $30 to $45 per square foot range. Asking rents for new mid-size and large space range from $16 to $20 per square foot per year and $12 to $16 per square foot per year, respectively. Active submarkets within the Albuquerque metro area are Uptown, Far Northeast Heights and the South Valley. In Uptown in the past 2 years, Coronado Mall and ABQ Uptown have welcomed the leading tenants in …