Market Reports

Retail Inventory Ticks Upward in New York City, But Low Rents Should Draw Tenants Back

by Taylor Williams May 25, 2021

By Pierre Debbas, Esq., partner at Romer Debbas LLP While headlines have primarily focused on impacts to small businesses, contrary to popular belief, large retailers and national chains have not been immune to the COVID-19 pandemic. Restaurant and hotel chains, movie theaters, gyms and other experiential retailers have shuttered locations across the country. Just this past July, legacy retailer Neiman Marcus closed its Hudson Yards location due to heavy COVID-19 impacts. The big box retailer also faced store closures in other locations, such as Florida and Washington, due to a high loss of revenue. These large, vacant retail spaces have created problems, especially in markets ike Manhattan. While there are some moves in play, such as Home Depot taking over the Bed Bath & Beyond’s midtown location, or Target setting sights on the former 86th Street outpost of Barnes & Noble, the reality of vacant spaces – large and small – is apparent throughout the city’s prime retail hubs. When looking forward, landlords will have to consider subdivisions and repurposing of big box spaces to make leasing viable, potentially making way for smaller-concept retailers and the return of mom-and-pop shops. Essentially, the question remains: What is the true absorption rate …

May 25, 2021

Market Reports Retail Washington Western Western Market Reports

Seattle Companies Are Watching Three Top Retail Trends

by Jeff Shaw May 24, 2021

By Tory Glossip, Managing Director, Colliers Puget Sound has 553,566 square feet of retail under construction, comprising 0.4 percent of existing inventory. The market dynamic will keep retail property values in the Pacific Northwest higher than most U.S. markets that are overbuilt. Puget Sound’s retail market posts rents 30 percent above the national average at $20.71 per square foot. Pricing is traditionally a function of supply and demand. In the retail world, that demand relies partially on income. The most expensive markets to lease retail space also happen to have the highest incomes…by far. Despite ideas in some circles that retail is dead, physical footprints will continue to be an important part of the retail landscape, although less so in downtown areas until workers return to the office. Most consumers have retreated to submarkets, leaving retailers to explore alternative options to use their property more effectively. Brands are expanding their reach with small-format stores and cross-promoting their products and services in showrooms. Many are leveraging smaller footprints into touch-and-feel locations that seamlessly blend online browsing and in-store purchasing. The shopping mall as we know it will have a different look and feel post-COVID. With big box retail reallocating existing space into localized …

May 24, 2021

Industrial Market Reports Midwest Midwest Market Reports Nebraska Office Retail

Solid Fundamentals Uphold Lincoln Real Estate Market

by Kristin Harlow May 20, 2021

By Tom Graf, NAI FMA Realty Over the past decade, Lincoln has experienced sustained growth and earned a reputation as a place to be in the Midwest. Its low unemployment, stable economy, low cost of living, prospering tech scene as well as lifestyle and entertainment fitting of a big city with the feel of a small community has insulated Lincoln better than many cities of its size. Perhaps this is most compelling with the number of cranes spotted in the skies back in 2008 and again in 2020. Just as many cities were struggling, Lincoln built its way out of the Great Recession in 2008 and 2020 was no exception. Retail Throughout the economic uncertainty brought on by the COVID-19 pandemic, Lincoln’s retail landscape fared well with vacancy holding at 7.1 percent for the year in 2020. New construction was active throughout the market despite store closures and bankruptcies making the national headlines. For some opportunistic retailers, vacant spaces opened the door to take advantage of the market and negotiate better terms for new locations. Retailers thriving in today’s market are the “daily needs” retailers — grocery, home improvement and discount concepts. Some niche online businesses, which have grown through …

May 20, 2021

Industrial Market Reports Texas Texas Market Reports

Large-Scale Industrial Development Ramps Up Throughout El Paso

by Taylor Williams May 19, 2021

By Doug Derrick, SIOR, managing broker, NAI El Paso The remarkable pace and volume of industrial growth that has defined the major markets of Texas over the past decade is making its way to El Paso, as evidenced by larger projects for marquee tenants and elevated levels of institutional capital targeting the market. The COVID-19 pandemic has boosted the appeal of industrial assets of all varieties, crowding the space with capital sources, driving up prices and creating lower yields on new investments. This holds especially true in high-growth markets like Dallas and Austin, which is why institutional investors are beginning to target secondary markets like El Paso, where assets can be acquired at lower prices. El Paso is experiencing the same growth in e-commerce and online shopping as the rest of the country. This market also continues to benefit from international trade and manufacturing across the border, adding another unique form of demand for developers and owners in our border town. Over the past decade, the volume of El Paso’s exports has doubled, with much of those goods flowing to Mexico. We expect to see manufacturers continue to locate operations in markets other than China, which should increase demand for …

May 19, 2021

Industrial Market Reports New Jersey Northeast Northeast Market Reports Pennsylvania

Demand Floods Mid-Atlantic Industrial Market

by Taylor Williams May 18, 2021

By Taylor Williams Demand for industrial space continues to surge throughout New Jersey and eastern Pennsylvania, prompting developers to undertake more projects on a speculative basis and avail themselves to the classic mantra of “If you build it, they will come.” E-commerce users, spanning every industry from building materials to electronics to food, continue to spearhead the demand side of the equation. According to the U.S. Census Bureau, in 2020, a year in which a global health crisis spurred furious increases in online shopping, e-commerce sales accounted for 14.4 percent of all retail sales, up from 7.3 percent in 2015. That figure is expected to grow to nearly 20 percent by 2024. Lenders are eager to finance speculative industrial projects, and developers are scouring the Mid-Atlantic for viable sites as spec projects increasingly account for bigger portions of their portfolios. “Pre-COVID, and even dating back several years, you might see 20 percent of the Mid-Atlantic industrial projects being done as build-to-suits,” says Rob Borny, senior vice president of capital deployment and head of the East Region for Nevada-based Dermody Properties. “It’s now moving toward being significantly less [build-to-suit activity] due to robust tenant demand, as well as the shorter lead …

May 18, 2021

Industrial Market Reports New Jersey Northeast Northeast Market Reports

Investment Demand Heats Up for Multi-Use Logistics Assets in New Jersey

by Taylor Williams May 14, 2021

By Alex Kachris, research manager — Northeast industrial region, JLL Industrial commercial real estate had its second-best year on record in 2020, with U.S. transaction volume nearing $96 billion. As competition among investors for industrial product remains strong in 2021, JLL Capital Markets Research isolated one sub-class that is gaining investor interest: multi-use logistics. The multi-use logistics profile includes older, multi-tenant assets ranging from 20,000 to 100,000 square feet that have solid footprints within infill urban logistics markets. These assets, which often have diversified, local tenant bases, usually house a mix of distribution, flex showroom, industrial showroom, R&D, warehouse and/or manufacturing space. Multi-use logistics assets boast compelling rent growth profiles and strong long-term outlooks. With new, yield-focused investors jumping into the industrial space, multi-use logistics product is desirable as an alternative to the bulk industrial market, which is getting tighter. Given that multi-use logistics facilities are generally older properties, population centers have exploded around these assets, making not only almost impossible to replace but highly sought-after as last-mile logistics locations close to end users. Compounded by industry fundamentals that are driven by macroeconomic factors, including reshoring and acceleration of e-commerce adoption, the increased demand for these smaller, multi-tenant industrial assets …

May 14, 2021

Industrial Market Reports Midwest Midwest Market Reports Nebraska

Omaha Industrial Activity Remains Strong, Particularly in Western Sarpy County

by Kristin Harlow May 13, 2021

By John Dickerson, OMNE Partners Our Omaha-area industrial sector has come through the pandemic very well, compared with other commercial sectors. We have not had to work out many rent payment plans with tenants, and industrial users going out of business have been minimal. Omaha has survived and come out of 2020 well economically. Our unemployment rate is the second lowest in the country. Our cost of living has also been lower than most other major cities in the Midwest. This low cost of living carries over to real estate rental rates and operating costs. Leasing activity Industrial leasing has been quite good in Omaha for years. Our vacancy rates have been below 5 percent for a number of years and currently have been about 3.5 percent. By reviewing spaces for lease on Crexi, an internet marketing service, there are about 120 properties that I identified with space available with a total of over 3 million square feet for lease. Rental rates for industrial vary, of course, for typical reasons — age and condition of the property, location and how much a space/building might be finished in office or other special improvements. In Omaha, many flex buildings have users that …

May 13, 2021

Market Reports Restaurant Retail Texas Texas Market Reports

Food & Beverage Users Spearhead El Paso Retail Market’s Recovery, Growth

by Taylor Williams May 12, 2021

By Adam Frank, president, River Oaks Properties As one of the sector’s largest owners and developers, we have been witness to a number of uplifting and heartbreaking outcomes wrought by COVID-19 in the El Paso retail market over the last year. We’ve spent countless hours working with the 800 or so tenants that comprise our portfolio, negotiating rent deferrals and restructured leases, helping them navigate the newly launched Paycheck Protection Program and devising creative real estate solutions to help keep their businesses afloat. In some cases, these efforts have helped tenants keep their doors open. In others, the economic impacts of COVID-19 ultimately hit the employee bases and operating budgets of tenants — especially those of the mom-and-pop variety — too harshly for them to survive. But through the good, bad and universally unprecedented challenges of 2020, we have seen one category of retail — food and beverage — position itself as the clear leader in the recovery and inevitable return to growth of the broader El Paso market. As is often the case during economic downturns, the grocery sector has performed well over the past year, with both large- and small-format players looking to expand in El Paso. River …

May 12, 2021

Market Reports Multifamily Northeast Northeast Market Reports Pennsylvania

Pittsburgh Development Landscape Favors More Multifamily, Adaptive Reuse Projects

by Taylor Williams May 11, 2021

By Mark Fogel, president and CEO, ACRES Capital As the state’s second-most populous metro, the Pittsburgh MSA is the anchor of western Pennsylvania. Over the last 20 years, Pittsburgh has pivoted and evolved into a hub for the healthcare, education and technology industries, thus attracting an influx of young, high-earning millennials. Over the last 10 years, Pittsburgh has undergone an economic resurgence. Firms such as Google and Uber have opened regional headquarters in the city, lured by the strong base of talent graduating from Carnegie Mellon University’s (CMU) computer science and robotics programs. In fact, Pittsburgh has been the epicenter for autonomous vehicles (AVs) since the mid-1980s, when CMU’s Robotics Department developed the world’s first self-driving car. AV research, development and testing are expected to be catalysts of growth for the city in the coming years. In addition, the cutting-edge research at the University of Pittsburgh School of Medicine and the associated University of Pittsburgh Medical Center, which operates eight hospitals within the MSA and plans to build three more over the next several years, is attracting medical professionals from around the world. These factors, combined with a low cost of living and proximity to high-end amenities, have helped Pittsburgh …

May 11, 2021

Industrial Market Reports Washington Western Western Market Reports

Strong Market Fundamentals, Ecommerce Expansion Fueled Seattle’s Industrial Market in 2020

by Jeff Shaw May 10, 2021

By Kaden Eichmeier, Director, JLL Capital Markets Strong economic fundamentals bolstered market dynamics in the Puget Sound over the past 12 months. This market is driven in part by significant amounts of capital targeting industrial, the availability of low-cost debt and strong tenant demand. There were 125 industrial transactions totaling nearly $1.9 billion closed last year, and the outlook for 2021 looks even brighter. Competition has stiffened through the first quarter of 2021. Investors have increased allocation requirements, and the list of new entrants targeting the Seattle industrial market continues to expand. With growing demand, the core market is growing geographically as supply constraints push investors and developers further north and south. For example, Panattoni recently announced it will build a 2.1-million-square-foot, five-story warehouse for an ecommerce company on a 75-acre site just south of the Arlington Airport. Northpoint Development also announced the 4.1-million-square-foot Cascade Business Park in Arlington. To the south, Panattoni is also developing Big Freddy Logistics, a three-building park that will total 771,855 square feet, while Logistics Property Co. is developing the 352,801-square-foot Frederickson One speculative project. There is currently nearly 7.5 million square feet under construction. This includes 3.2 million square feet in Pierce County and …

May 10, 2021

Newer Posts

Older Posts