What area is your expertise? Sacramento region What trends do you see presently in office development in your area? Overall construction has slowed compared to the past few years. However, there are still a number of new office projects in the pipeline, which will deliver almost 2.4 million square feet within the next 18 months. Spec development has given way to build-to-suits and pre-leasing, which will benefit vacancy rates in the current market. Who are the active office developers in your area? Jackson Properties, Panattoni Development Co., Evergreen, Harsch, and Opus West are active in our area. Please name one or two significant office developments in your area. What impact will these projects have on the market? Two high-rise, Class A buildings are under construction on Capitol Mall, delivering nearly 800,000 square feet of new office space combined. 621 Capitol Mall, aka U.S. Bank Tower, will deliver 366,000 square feet/25-stories late 2008, on behalf of David Taylor Interests. 500 Capitol Mall, owned by Tsakopoulos Investments, will provide 430,000 square feet of office space to tenants by fall 2009. While this is a significant amount of space in a short time frame, the strength of the Downtown market should be able …
Western Market Reports
What area is your expertise? Sales and leasing of industrial and commercial property in Portland, Oregon. What trends do you see presently in industrial development in your area? Industrial development continues to be fairly strong, provided land can be found to be developed. Overall, within the Portland Metropolitan Area industrial land supply is short on top-quality sites. Consequently, secondary and redevelopment sites, though limited in supply, continue to be the choices available to development firms. What type of industrial product is doing well in your area? There are two types that seem to be doing fairly well. One is 40,000 to 50,000 square foot and larger spaces for warehouse/distribution use in newer developments that are located along major freeways with easy access. The others are 5,000 to 20,000 square foot spaces for local or semi-regional companies with a need for corporate headquarters, assembly manufacturing and/or warehousing. Who are the active industrial developers in your area? Locally, firms such as Specht Development, Pacific NW Properties, PacTrust Development; national companies such as Opus, Prologis, Birtcher and Trammel Crow continue to be very active in our area. Please name one or two significant industrial developments in your area. What impact will these projects …
What area is your expertise? Generally speaking, my expertise is in multi-tenant retail centers with a mixed-use component as well as traditional grocery anchored centers. The areas that I cover are Los Angeles and Orange County, Calif. What trends do you see presently in retail development in your area? Since land costs have risen so dramatically, the general trend that we have seen is for more vertical development with a mixed-use component. What type of retail product is doing well in your area? Urban infill projects are doing very well. The tenants are not being aggressive like they were over the last few years so the focus has moved back to the urban infill locations. What retailers are new to your area? Clearly Tesco has made a big splash in our market, which has affected the plans of many of their competitors with regards to expansion. While we hear their expansion has stalled, we still believe that it is too early to tell how their entrance in the market will affect the grocery business. Who are the active retail developers in your area? There are many, but it’s very fragmented. Caruso, and CIM are some of the bigger players but …
What area is your expertise? Sacramento Valley What trends do you see presently in retail development in your area? The retail market is experiencing declining rental rates for the first time in years. Mom and Pop retailers have virtually disappeared and national credit tenants are pulling back on expansion plans, while closing underperforming stores. The strip centers in many areas have been hit the hardest. What type of retail product is doing well in your area? Urban redevelopment projects have been the bright spot in the marketplace, particularly those that have located in underserved markets and filled by quality retail tenants. What retailers are new to your area? Boudin Bakery, The Counter Burger, Chico’s, Cold Water Creek, Orvis, New Balance, Smith & Hawkin, Sur La Table, White House|Black Market, Fresh N Easy, and CVS Pharmacy. Who are the active retail developers in your area? Donohue Schriber, Panattoni Development Co., Capital and Counties Development Group, Granite Bay Ventures, The Evergreen Company, Opus West, Peter Bollinger Investment Group, and Stonehenge Property Group. Please name one or two significant retail developments in your area. What impact will these projects have on the market? Florin Towne Centre — Florin Mall Redevelopment project. NWC of …
What area is your expertise? Central Business District, Portland What trends do you see presently in office development in your area? We see a lot of new class A properties coming out of the ground, delivering approximately 2010, with a lot of rehab in the Class B market. Who are the active office developers in your area? Shorenstein, based out of San Francisco; TMT, a local developer; Winkler; and Unico are a few of the most active companies right now. Please name one or two significant office developments in your area. What impact will these projects have on the market? First & Main will be the next new construction out of the ground in the downtown core. It is a 13-story Class A office building with a completion date set for First Quarter 2010. Construction on TMT Development’s Park Avenue West has recently begun, also in the downtown core. This will be an office/retail/condo mixed-use building that delivers approximately late 2010 or early 2011. These projects will have a huge impact on the market, where the Class A supply is very tight. Where is the majority of development taking place? Why is this area doing well? There is a lot …
What area is your expertise? The west Los Angeles office market. What trends do you see presently in office development in your area? There is a dramatic tightening of the market, with rents in some specific market areas jumping by 50 percent in the last 12 months. Who are the active office developers in your area? Legacy Partners, Blackstone, Lincoln Property, and Tishman Speyer. Where is the majority of development taking place? In and around Playa vista (the Howard Hughes project) Why is this area doing well? This is not only where the greatest amount of vacant developable land is, but it is also near to LAX, as well as being central to the residential communities of both West Los Angeles, Marina del Rey, Beverly Hills, the Palos Verdes Peninsula and the beach communities. What area do you expect to be the next big development market? This market will be strong for the next 10 years because there is a sufficient supply of vacant land. What areas are doing well in terms of office leasing? The whole West Side. Which areas are struggling with office leasing? Downtown Los Angeles Please give a measure of office vacancy rates. The vacancy rate …
What area is your expertise? I currently have listings throughout the greater Sacramento area including Elk Grove, Power Inn, South Sacramento, West Sacramento, Northgate/Natomas and Rancho Cordova. What trends do you see presently in industrial development in your area? The most prevalent trend in industrial development is not to develop on speculation. Since 1999 we have averaged at least 1.9 million square feet of product in the pipeline at any given time. The current decrease in industrial development is certainly benefiting existing landlords during this time of economic softness and is playing a major role in suppressing vacancy levels. This trend was set in motion long before the economic downturn, marking the sixth consecutive quarter in which the pipeline has shrunk. What type of industrial product is doing well in your area? Second and third generation industrial properties are doing well during this downturn in the marketplace. Investors are looking for distressed properties while users are concerned with the bottom line. The price of industrial land coupled with high construction cost has made it very difficult for newer developments to pencil. Who are the active industrial developers in your area? Cable & Kilpatrick, Massie, Harsh Investments, Jackson Properties, Buzz Oates …
What area is your expertise? Apartment brokerage in Portland What trends do you see presently in multifamily development in your area? Downtown development is strong. Large, high-end transactions from late 2007 continued into first quarter 2008. The high level of acquisition activity on the institutional front will continue in 2008. By the end of 2007, activity of smaller (below $5,000,000) properties was down 20 percent from 2006. This will be the trend for 2008. Who are the active multifamily developers in your area? Opus Development, Trammell Crow, Unico and Gerding Edlen. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? The Wyatt — Northwest submarket — just completed — Bob Ball and Evergreen Signature, LLC, developers. It was converted from condos to high-end apartments – will fit growing demand for luxury apartments. The Lovejoy — Northwest submarket — under construction — Unico, developer. Mixed-use with Safeway grocery store, 231 units of multifamily space and office. Supplying grocery to an area of Northwest/downtown neighborhood that has not had a grocery store. Where is the majority of development taking place? Why is this area doing well? Downtown core – close-in (to …
What area is your expertise? My specialty is in the sale of multifamily in the North Bay region San Francisco Bay Area (Marin, Sonoma, Napa and Solano Counties). What trends do you see presently in multifamily development in your area? Developers for the most part have pursued condo development in lieu of apartment development on land zoned high density residential. This is due to the huge economic value advantage condos offered over apartments. The apartment development we have seen has been concentrated in either a few very large Class A apartment assets, or affordable (tax credit and bond enhanced) or senior living. Who are the active multifamily developers in your area? Spanos, Fairfield Residential and DR Horton Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? The Moore Building (79 units in Downtown Santa Rosa) and Water Street North (107 entitled apartment units in Downtown Petaluma) are two interesting projects. Neither project has or will have a significant impact on the supply of units. What is more interesting is that both projects are victims of the same problem: projects getting entitled without a market to support them. In the …
Submitted by Kitty Wallace, senior vice president with the West Los Angeles office of Sperry Van Ness. What area is your area of expertise? My area of expertise is Southern California, but for the purpose of this interview I will focus on Los Angeles County. What trends do you see presently in multifamily development in your area? The rapid escalation of construction costs has subsided and in some cases is even coming down and labor is more widely available and less expensive. Despite reduced costs, land costs have started to come down. As demand for luxury condos wane, many development sites that were once slated for condo-construction will most likely be redirected to multifamily apartment buildings or mixed-use buildings. Who are the active multifamily developers in your area? A few major multifamily developers in the area are Legacy Partners, Related Development Company, NMS Properties, JPI Development, Lowe Enterprises, Fifield Company, and JSM Development. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? One significant multifamily development is the $600 million mixed-use development on Hollywood and Vine by Legacy Partners. This project is comprised of a hotel, retail space, condominiums, …