Tuesday, January 14, 2025
Read the Digital Magazines Subscribe to the Magazines
Subscribe

Market Reports

76-Place-Philadelphia
DevelopmentMarket ReportsNortheastNortheast Market ReportsPennsylvaniaRetail

New 76ers Arena Has Game-Changing Potential

by Taylor Williams

By Taylor Williams Though very much in its infancy, the Philadelphia 76ers’ recent decision to assemble a development team and file a formal proposal for a new arena at the current site of Fashion District Philadelphia has drawn the city’s retail market into speculation on how buildings, operators and streetscapes will be impacted. Known as 76 Place, the $1.3 billion venue would theoretically anchor the Market East corridor that connects Center City to Chinatown and Old City via its location atop the city’s largest public transit hub. The ability to centralize the arrival of fans, shoppers and diners from all cardinal directions, as well as multiple states, automatically sparks excitement for growth opportunities in the world of retail real estate. This project would immediately check that box.  “The announcement of the new 76ers arena has generated a lot of discussion in the retail world,” says Steve Gartner, executive vice president at CBRE. “Bringing an arena to downtown Center City, especially one that’s adjacent to a convention center, will allow Philadelphia to hold more concerts and global events, like political conventions, that impact retailers and restaurants. These positive impacts will permeate the fabric of all of downtown.”  “The retail community is …

Continue Reading
FacebookTwitterLinkedinEmail
Champions-Village-Houston
IdahoMarket ReportsRetailWesternWestern Market Reports

Idaho Makes a Retail Comeback

by Jeff Shaw

By Brandon Rawlins, Principal Broker, and Bronson Rawlins, Retail Lead and Associate, JLL Like much of the country, the Idaho retail market is seeing a strong rebound in various retail sectors that appeal to the return of social gatherings and a hybrid approach to work life. Moreover, experiential retail is making a strong comeback as consumers crave fun and a return to normalcy. According to JLL’s recent Retail Outlook report, retail fundamentals continue to improve across most of the country, but particularly in the Sunbelt states. Shoppers are heading back to stores, moviegoers are going back to the theaters, and new demand for fun and immersive experiences is on the rise. The Boise area is no exception, with the announcement of several new major players, including Top Golf, Scheels and several mixed-use concepts that appeal to the new hybrid work experience that combines food, shopping and residential. Eatertainment concepts — entertainment with an emphasis on food and beverage — saw a national traffic surge of 22 percent from April 2019 levels and more than 36 percent year over year. Interestingly, retail activity is not just taking place in certain submarkets or neighborhoods; there is strong activity throughout the entire state. The impact of these developments will bring new tenants …

Continue Reading
FacebookTwitterLinkedinEmail
IllinoisMarket ReportsMidwestMidwest Market ReportsOffice

As Uncertainty Continues in Office Market, What Should Tenants Do?

by Kristin Harlow

By Ryan Foran, Cresa As we approach the three-year anniversary of the start of the pandemic, it continues to affect the commercial real estate industry in many ways, with no asset class impacted as significantly as the office sector. While retail initially stumbled but rebounded, and industrial soared to unexpected heights amid distribution emergencies, millions of U.S. office employees continue a tenuous balance of working from home versus going into the office.  The pandemic wasn’t all bad news for office tenants. Many businesses with simple infrastructure and experienced staff have been so effective with remote set-ups that they have shed office space permanently and eliminated rent from the books. Others have embraced emerging technologies like virtual meetings and chat solutions to reduce the need for face-to-face interaction. In one way or another, most businesses were able to leverage this unique situation to improve their business processes, technology and personnel, and have embraced remote work at some level. But many businesses with younger, less experienced staff have reported ongoing struggles with recruiting, mentorship, culture development and staff retention. Some of these may have been amplified by complex external factors such as an ongoing labor shortage, an unprecedented resignation of our older …

Continue Reading
FacebookTwitterLinkedinEmail
IndustrialKentuckyMarket ReportsSoutheastSoutheast Market Reports

Louisville’s Bulk Industrial Development Pipeline Surges in 2022

by John Nelson

With vacancy in Louisville’s industrial bulk market sitting at 1.7 percent, an increase of supply is sorely needed. Fortunately, plenty is on the way. At the halfway point of 2022, over 9.5 million square feet of bulk inventory is under construction, with approximately 4.8 million square feet slated for completion by year-end. Due to the demand for big box distribution warehouse space, which skyrocketed due to COVID-19 and the increase of online ordering and e-commerce fulfillment, absorption (12.9 million square feet) outpaced construction (9.9 million square feet) to the tune of 3 million square feet, and depleted vacancies in the process. Average asking rent increased from $4.79 per square foot to $5.26 in the second quarter and is up 26.7 percent from $4.15 at this time last year. This can mainly be attributed to overall increase in demand and increased construction costs. With nearly 5 million square feet of new speculative product hitting the market by year-end, coupled with recent completions of approximately 3 million square feet and 1.6 million square feet of sublease space expected to hit the market in the near future, deal rates are expected to steady and could potentially decrease as competition among landlords increases over …

Continue Reading
FacebookTwitterLinkedinEmail
IdahoMarket ReportsOfficeWesternWestern Market Reports

Metro Boise’s Population Growth Spurs Low Office Vacancy

by Jeff Shaw

By Karena Gilbert, Office & Investment Associate, Colliers With a population of a little more than 795,000, the Boise metro area has consistently ranked as one of the fastest-growing places in the nation. Ada and Canyon counties saw a population increase of 7.8 percent from 2020 to 2022. This growth has brought both business and talent to the Boise area and around the state. In a city already ripe with highly skilled, educated and community-minded people, the influx of more talent helped stimulate the growth of local and newly planted companies. Unemployment was 2.4 percent in June 2022, its lowest since May 2018. We are once again seeing companies that have to work to attract and retain employees in this growing market.  Boise office tenants have returned to work. There is a degree of remote work, along with the adoption of hybrid work, as many employers and employees are unsure how many days per week anyone will be required in the office. There is a strong desire to have employees back to work as it fuels collaboration, mentorship and training. Companies that had thought about reducing their footprint are now reconsidering and finding value in having a collaborative environment. Boise has smaller office users …

Continue Reading
FacebookTwitterLinkedinEmail
HealthcareMarket ReportsMidwestMidwest Market ReportsMinnesota

Expanding Providers Boost Minneapolis Medical Office Market

by Kristin Harlow

By Jill Rasmussen, Davis The Minneapolis – St. Paul medical office building (MOB) market remains strong with calculated strategic growth from both hospital systems and independent clinics. The MOB sector has been resilient during the pandemic, economic challenges and local civil unrest. Providers have been focused on expanding into new market areas to locate close to their patient base, providing full-service medical hubs offering outpatient surgery and specialty services to communities while offering lower-cost care away from a hospital campus. The overall market remains very stable with a current vacancy rate of 8.6 percent on-campus and 10.6 percent off-campus. There remains high interest in off-campus locations for most non-acute care for location access and cost savings.  Base rents continue to increase both on- and off-campus due to demand and higher new construction pricing. Base rates have reached nearly $22 per rentable square foot (rsf) on average on-campus and $21/rsf for off-campus existing product.  New MOB construction rates have increased from $24.50/rsf to $28+/rsf due to interest rate hikes and supply chain/labor issues, but new construction projects continue to move ahead based on provider’s strategic initiatives.  Annual base rent increases are trending up due to current inflation levels from a historical …

Continue Reading
FacebookTwitterLinkedinEmail
Market ReportsTexasTexas Market Reports

Texas Real Estate Programs, Internships Aim to Simulate Real Deal

by Taylor Williams

As the volume of commercial real estate demand, deals and development skyrockets throughout Texas, the industry is working to curate the talented workforce needed to sustain growth, with an emphasis on short-circuiting the gap between education and application. As with any business, understanding the historic principles, ethics and philosophies that govern how commercial real estate is practiced can augment anyone’s career. In addition, it doesn’t hurt to possess certain personality traits — articulation, sociability, self-motivation — that have long been associated with commercial real estate “types.” But according to professors within real estate programs at some of the state’s prominent academic institutions, simulating actual work experience at the grassroots level is what really allows students and interns to thrive early in their careers. Just as important, the industry professionals who hire and train these individuals tend to support this approach. UT Austin  At the University of Texas at Austin (UT), real estate is not a formal major that students can declare, but rather a concentration within the finance program in which both undergrad and graduate students can specialize. The program typically includes 100 to 150 undergrads and 15 to 20 graduate students pursuing a Masters of Business Administration (MBA) degree. …

Continue Reading
FacebookTwitterLinkedinEmail
FloridaMarket ReportsRetailSoutheastSoutheast Market Reports

Impressive Metrics for Orlando’s Retail Market May Mask Looming Storm Clouds

by John Nelson

The retail market in the Orlando MSA is doing well, on the surface. According to the numbers, the region has recovered from the effects of the COVID-19 pandemic. Orlando’s economy is heavily driven by tourism and when travel stopped and the initial state-wide shutdown orders went into effect on April 3, 2020, the impacts were profound and widespread, since four of the top 10 employers in Central Florida are in hospitality or retail, as well as Orlando International Airport. Since then, life in Central Florida has largely returned to normal. Tourism is back, hotel occupancy is up and people are dining out again. Retail numbers for the second quarter are actually better than in the first quarter of 2019, according to CoStar Group. The availability percentage at the beginning of 2019 was 5.9 percent, compared to 4.7 percent at the end of the second quarter. The average rent is up as well, rising from $21.94 per square foot to $25.52. Consumer habits have changed as e-commerce is still enormously popular, although it’s now more about convenience than mitigating risks. For those who can, working from home has become the preferred mode. As a consequence of the remote work trend, local …

Continue Reading
FacebookTwitterLinkedinEmail
Life SciencesMarket ReportsNorth CarolinaSoutheastSoutheast Market Reports

Life Sciences Reign Supreme in Research Triangle

by John Nelson

While the Research Triangle Park (RTP) is the heartbeat of all things life sciences in the Southeast, the outlying areas of the Raleigh-Durham market, commonly referred to as the Triangle, haven’t been ignored by expansive growth in the sector. Corporate announcements and expansions in Holly Springs, Sanford, Four Oaks and Hillsborough have been more prevalent in recent years, as well as in the home base of Raleigh. Amgen, a California based company, is constructing a $550 million biomanufacturing facility in Holly Springs, and Becton Dickinson recently selected Four Oaks in Johnston County for its new manufacturing site, with plans to invest approximately $25 million in the development. After many years of focusing on the manufacturing industry, Lee County, approximately 40 miles from Raleigh, is becoming a burgeoning hub for life sciences after the expansions of Pfizer’s 230-acre site. A subsidiary of Abzena chose Sanford following a nationwide search for its 325-job manufacturing facility. Also in Sanford, Astellas Gene Therapies delivered a $109 million facility in the second quarter, its first outside California. It is evident that investors and developers see great opportunity in both the heart of the Triangle’s urban cores and rapidly growing outlying counties. Developers are responding to …

Continue Reading
FacebookTwitterLinkedinEmail
Penighetti-Pull-Quote
Market ReportsNew YorkNortheastNortheast Market Reports

Net-Lease Tenants in New York Can Appeal Property Tax Assessments

by Taylor Williams

By Jason Penighetti, attorney, Koeppel Martone & Leistman LLC In a far-reaching decision, New York’s highest court has affirmed the rights of tenants under a commercial net lease to protest assessments and reduce their real property tax burden. The ruling reversed a State Supreme Court dismissal of a petition on the grounds that only a property’s owner can file an administrative grievance with the Board of Assessment Review. In a net lease, the tenant is responsible for paying real estate taxes and other expenses stated in the lease. In the matter of DCH Auto vs. Town of Mamaroneck, the Court of Appeals in June 2022 published a unanimous decision stating that tenants contractually obligated to pay real estate taxes and authorized to protest assessments may file tax appeals even when they do not hold title to the underlying real estate. Restoring a Precedent DCH Auto operated a car dealership in a net leased property in Mamaroneck, New York.  Its lease with the owner required DCH to pay the property’s real estate taxes in addition to rent.  Commercial tenants with this type of lease commonly file tax appeals to correct excessive tax bills and mitigate operating costs. These occupiers include retailers …

Continue Reading
FacebookTwitterLinkedinEmail
Newer Posts
Older Posts