The Jacksonville multifamily market can lay claim to being the healthiest in Florida, not because of blockbuster demand or rapid construction, but because steady growth has kept it from overheating. The pace of construction and absorption should sustain the market for at least the next six months to a year. With an unemployment rate at 5.8 percent in September, it’s clear that the metro market has bounced back from the recession, boosting demand for housing. GE announced that same month they would be opening a new plant, adding 500 jobs. Additionally, Forbes ranks the city sixth nationally in its list of best cities for tech jobs, just ahead of Silicon Valley. Unlike other regions of the state that attract retirees and foreigners, Jacksonville is drawing young professionals and recent college graduates who are well-matched to small-scale multifamily projects. These single, well-educated and childless individuals tend to be renters. And because of their sophisticated tastes, they are driving the creation of live-work-play communities that resemble well-established submarkets like Brickell in Miami and along Magnolia Avenue in Orlando. Residents who want to be close to entertainment districts are moving into the Southside submarket, which is close to downtown and the St. John’s …
There was a time when retail in the District of Columbia was tired and unimaginative, but today things are changing. Today, D.C. competes with some of this country’s greatest retail cities. No longer do “food by the pound” cafes dominate fast casual lunch options, or tired steak houses fill the nights. A young generation of award winning chefs — the likes of Mike Isabella, Cedric Maupillier and Aaron Silverman — are driving a new culinary scene, which in turn is helping to boost retail growth across our city. Silverman’s Rose’s Luxury across from the Marine Barracks on Capitol Hill was just named 2014 best new restaurant in the country by Bon Appetit. With a population of less than 700,000, D.C. is still a relatively small city, but it doesn’t act like it. It is the focus of the nation’s — and the world’s — political eye. It is also blessed with a stable economy and the recent influx of a younger generation who seek to put their stamp on it. We are no longer just a government town. International corporations like Hilton, Marriott, Choice, and Host Hotels have chosen this market for their headquarters. Discovery and Travel channels have staked …
The Washington, D.C. metro multifamily housing sector has continued to demonstrate resiliency and recovery in the midst of the clamor in the media over the last year, which has caused many to believe otherwise. Multifamily has enjoyed declining rental vacancy levels the last three of four years ending in 2013, and only nominal increases during 2014, according to Reis. The eagerness of developers to capitalize on the absorption and flowing capital markets of the D.C. multifamily market has left some speculators concerned that the established strength of the fundamentals will be eroded by oversupply and ultimately lead to flat or negative rent growth and high vacancy rates. While 2014 has come with a stream of new developments hitting the D.C. metro, absorption remains steady and in some cases outperforming expectations. New product has been consumed as quickly as new developments are delivered. The D.C. metro market absorption is on track to exceed its record of units absorbed in a year, which was reached in 2010, already absorbing 4,904 out of the 6,516 units delivered year-to-date, according to Reis. This continued strength of the multifamily market is further evidenced by higher levels of demand for Class A luxury units, as shown …
The Washington, D.C. metropolitan area’s retail market is expected to continue to perform as well as or better than any other retail market in the nation. Ranked the seventh-largest Metropolitan Statistical Area (MSA) in the United States, Washington boasts a dizzying amount of retail growth in existing and emerging neighborhoods. Household incomes in the area grew by 42 percent from 2000 to 2013, compared to just 27 percent nationally. The highly educated and affluent population is driving urban mixed-use developments across the region. According to the National Association of Realtors, Washington led the nation in the Millennials’ share of the local population, at 15.7 percent. Millennials are demanding authentic experiences in residential living, shopping, restaurants and entertainment. Cranes can be seen everywhere with 30,000 apartment units under construction, many with prevailing urban feel above retail. This trend is common in the redevelopment on H Street, the corridor between Union Station and 17th Street Northeast that has been undergoing redevelopment in the last half dozen years. During this time both Giant Food and Walmart have opened stores under apartment buildings in this neighborhood, which Forbes lists as one of the “hippest” areas in the United States. Insight Property Group just broke …
The Charlotte MSA has seen a tremendous amount of new retail development activity with more on the way as 2014 comes to an end. Market vacancy has steadily declined since 2010 as new supply of space has been overshadowed by demand. The drop in the unemployment rate in the past 12 months to 6.3 percent from 7.2 percent reflects the improving health of the market. One of the more exciting and significant retail developments to debut in Charlotte this year is the Charlotte Premium Outlets development at the I-485/Highway 160 interchange in southwest Charlotte. Tanger Development and Simon Property Group joined forces to deliver this 450,000-square-foot, open-air center, which opened to large crowds in late July at close to 100 percent occupancy. It is anchored by a 30,000-square-foot Saks Off Fifth, and includes a full complement of more upscale and moderate specialty retailers. Grocers Hungry for Market Share Grocery store activity has driven much of the new development and redevelopment in the Charlotte area, with Publix opening its first units in North Carolina. Publix premiered its Ballantyne store in the spring of the year and has since opened in other renovated locations it gained through its acquisition of a number …
The office market of the Greater New Orleans area is gaining strength alongside the economy of the region. Continued infrastructure investment in and around New Orleans and a surging entrepreneurial spirit throughout the city have contributed to several significant economic development successes, which have resulted in consistent and positive national press about the region and sense of optimism in the general market. The impact of this optimism on the office market differs by submarket but has had the most measurable positive impact in the New Orleans central business district (CBD) and Metairie submarkets, which have the highest concentration of Class A office space. The office market in the New Orleans CBD is stable. This market has not yet experienced the consistent new tenant demand or existing tenant growth that would result in significantly higher rates, so the overall CBD market remains largely tenant-oriented with aggressive lease deals for credit tenants. However, there have been several regional economic successes like the attraction of GE Capital and Gameloft to the New Orleans CBD, as well as the renewal of major office leases such as Shell Oil (approximately 650,000 square feet), Capital One (approximately 150,000 square feet), and Freeport McMoRan (approximately 210,000 square …
At the end of June, the Memphis industrial market’s vacancy rate dropped to 10.8 percent, the lowest rate the market has experienced since 2000. The total vacancy rate had gotten as high as 13.5 percent in the first quarter of 2012. With more than 930,000 square feet of net absorption by mid-year, the Memphis MSA maintained strong leasing activity for the fourth consecutive quarter. The most active Memphis submarket continues to be Desoto County, Mississippi. The Desoto submarket has net absorption of 605,314 square feet and a total vacancy rate of only 4.2 percent as of mid-year 2014. Due to its growing service center economy, the second most active market is the Northeast submarket with 158,856 square feet of net absorption year to date. Memphis’ most established submarket, the Southeast submarket, is home to approximately 44 percent of the total floor space in the region and closed the second quarter with a total vacancy rate of 12.5 percent and 2014 net absorption of 123,416 square feet. This trend will more than likely continue as there is a limited supply of larger, developable tracts of land in Shelby County, Tennessee, in addition to more aggressive tax abatements and a less cumbersome …
This word problem title easily portrays the current state of the New Orleans metropolitan multifamily market. The past decade can be recorded as positive in asset appreciation, sales, rent and occupancy growth. Unlike the majority of multifamily markets in other cities, metro New Orleans has numerous barriers to entry. The market has a trifecta of sorts in that we have an ever-rising demand with a restrained supply due to the city’s geography, socio-economic factors and neighborhood resistance. All of these factors are contributing to the stability and positive outlook for the multifamily market going forward. The proof is in the numbers; overall occupancy for the seven submarkets in the New Orleans Metro is a firm 94 percent, with the majority of these markets reporting 95 to 97 percent occupancy levels. In the past 12 months, the market has experienced 2 to 4 percent rent growth even in submarkets that have seen the introduction of new inventory. The barriers to entry in the market provide owners with a “franchise” of sorts in that the introduction of significant new inventory is highly unlikely. Average rents in metro New Orleans are $1.05 per square foot. Newer suburban developments are averaging rents in the …
As New Orleans-area residents and businesses can attest, The Big Easy is currently experiencing a dynamic period of growth and development. With projects coming out of the ground, fierce competition for limited commercial space downtown and a number of new retailers entering the market, there is more reason for optimism than at any time in recent history. New Orleans is a hot market right now — hotter than at any time in the past 25 years, which is a remarkable feat given the significant momentum shifts over the years. Retail activity is especially significant, with brokers observing that the last 24 months constitute an unprecedented level of activity. What is particularly noteworthy about the strength of the market is that the growth appears to be spread across all categories — from urban core development to suburban and peripheral activity, and from ground-up projects to redevelopments. Newcomers and Returnees The list of major national retailers that have either recently opened their first store in the market, or that have just now re-established a presence in New Orleans almost 10 years after Hurricane Katrina, is eye-catching and speaks to the market momentum that has been building over the last two years. Big …
Atlanta is the economic engine of the Southeast, which is the fastest growing region in the country. With a population of 5.5 million across the 28-county metro area, the city is the ninth-largest metro nationally and is projected to be the sixth most populated by 2020. Atlanta’s high quality of life and low cost of living make it an ideal destination for young and educated talent around the region, as well as growing companies. Atlanta is home to 16 Fortune 500 companies and the busiest airport in the world — the recipe for a business boom and hot office real estate sector. According to Georgia State University’s Economic Forecasting Center, Atlanta is projected to add 305,000 new jobs between 2010 and 2016, with a drop in the unemployment rate to 5.7 percent in the same timeframe from the current rate of 7.5. That is a 13.5 percent increase in job growth over six years. The technology, homebuilding and service sectors are returning to health, if not climbing to new heights. According to CBRE’s U.S. Tech-Twenty research report, tech employment in Atlanta rose nearly 11 percent between 2011 and 2013. CBRE Research also finds that Atlanta’s recovery is underpinned by an …