Texarkana, riding a long-term economic boom with perfect positioning between Dallas and Little Rock, has enjoyed growth fueled by billions of dollars in external interstate projects, including I-30, I-369 and I-49, and hundreds of millions of dollars on the redevelopment of the city’s interstate infrastructure. An abundance of water has secured large-scale industrial developments including the recently opened John W. Turk Jr. Power Plant, Domtar and International Paper. Red River Army Depot (RRAD), the largest employer between Dallas and Little Rock, facilitates one of the largest wheeled and tracked military vehicle manufacturing centers in the world. RRAD coexists with TexAmericas Center, the largest industrial park in Texas, to offer an unmatched land resource of 12,000 acres along with abundant rail access. Texarkana’s strategic positioning, coupled with three interstates, ample rail and the proposed Red River Navigation Project, ensures long-term economic viability. H. Ross Perot, Texarkana’s native son, has endowed millions of dollars to the city’s education, the arts, scouting and the Salvation Army to name a few. Perot has been a major contributor to Texarkana College and Texas A&M University-Texarkana, helping facilitate the expansion of A&M’s four-year university programs to their new Bringle Lake campus, with a strong focus on …
A blistering cold winter lingered into the late spring and left the commercial real estate market in the Grand Traverse region frozen. Businesses waited for the market and the temperatures to thaw, and a third-quarter surge has activity back on track. From Jan. 1 through Sept. 30, property sales totaled $10.3 million and 221,136 square feet, including 118,515 square feet of industrial/warehouse buildings, 79,463 square feet of professional/medical office space, and 23,158 square feet of retail/restaurant space. That‘s slightly ahead of last year’s pace. During the first three quarters of 2013, property sales totaled $9.9 million and 207,845 square feet, including 121,469 square feet of industrial/warehouse buildings, 44,160 square feet of professional/medical office space, and 42,216 square feet of retail/restaurant space. The office sector posted about a 9 percent increase in the average sales per square foot during the first three quarters of 2014, while the industrial warehouse market recorded an increase of approximately 5 percent. The retail/ restaurant sector saw a 9 percent drop in the average sales per square foot The reduction in the average sales price in the retail/restaurant market sector is mostly due to the lack of quality inventory. This lack of inventory in our market …
Seattle has come a long way since the 1971 billboard reading “will the last person leaving Seattle turn the lights off?” The greater Seattle economy and real estate market has continued to be one of the nation’s top- performing locales, even exceeding its prior 2007 peak. Large corporations such as Amazon, Boeing, Microsoft and Starbucks, along with many independent startup companies, have rapidly reduced the unemployment rate, which has dropped to 4.8 percent. The construction pipeline in Seattle remains robust. With more than 20 cranes working on new developments, the market has the most active projects underway since the Downtown Seattle Associations started tracking development in 2005. Nearly two-thirds of construction in Seattle is residential, with more than 5,000 new apartment units opening since January 2013, and more than 6,000 new units to be completed in the next three years, according to the DSA report. During the past year, the amount of office space under construction has nearly doubled from 1.7 million square feet to more than 3.2 million square feet. A large contributor to this is Amazon’s revitalization of the South Lake Union area. Amazon’s global workforce has doubled in the past two years, and the company is reportedly …
DENVER – Boulder Tech Center, a 169,596-square-foot flex/research and development campus in Boulder County, has received an $8-million loan. The four-building campus is located at 6400 and 6450 Dry Creek Parkway and 6325 and 6450 Monarch Parkway. The non-recourse, 10-year loan features an interest rate of 3.7 percent and a 25-year amortization schedule. It was arranged by Stephen P. Bye of NorthMarq Capital’s Denver regional office.
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 …
Positive economic indicators in the San Antonio metro area are bolstering commercial real estate operations. Companies are expanding or relocating to San Antonio, attracted by the diverse economy and skilled workforce. Over the past year, all major employment sectors contributed to job gains. San Antonio recovered all of the jobs lost during the recession some time ago and there is no sign of slowing down. One of the strongest economic contributors is the extraction of oil and natural gas in the Eagle Ford Shale south of San Antonio, which generates thousands of jobs and billions of dollars in output. Heightened production in shale is boosting construction. Recently, Republic Midstream announced a $400 million pipeline and terminal system at Eagle Ford Shale. Additionally, the expanding government sector is fueling job growth due in part to the region’s extensive military operations. As employment prospects grow and a comparatively low cost of living draws new residents to San Antonio, demand for rental housing is strengthening. With single-family home prices on the rise, the renter pool is growing as the gap between owning and renting widens. Effect on Multifamily Sector Capitalizing on these trends during 2014, multifamily developers will deliver one of the largest …
SHERIDAN, COLO. – Oxford-Santa Fe Business Park, a 190,000-square-foot industrial property in Sheridan, has received $10.5 million in acquisition financing. The park is located at 1800 & 1880 W. Oxford Ave. and 4111-4251 S. Natches Court. Oxford-Santa Fe was built between 1983 and 1985. It is currently 96 percent leased, with 44 tenants. Financing was arranged by Steve Bye and Conor McCahill of NorthMarq Capital’s Denver regional office.
No one will deny that the Orange County industrial market is tight, boasting a 4.1 percent vacancy. If you are an industrial user looking for 100,000 square feet or more, your options are extremely limited, as supply and demand are not working in your favor in terms of rental rates and landlord concessions. According to CoStar, positive net absorption was just above 900,000 square feet for the second quarter of 2014. Compare that with the 978,000 square feet currently under construction and it is easy to see why most believe these rate and scarcity trends will continue. A number of large warehouse and industrial buildings in Orange County are also being raised and converted to high-density residential or data center space. These facts beg the question, where will all the industrial users go? Two counterbalances have the potential to cool the decreasing vacancy and create disintermediation to the benefit of Orange County industrial users. As rental rates continue to rise in Orange County, more and more companies are being lured to the Inland Empire where they can still make two port trips a day and consolidate into a much more efficient and affordable building. Companies that grew by necessity in …
Boston is known for its top-notch universities that spawn world-class technology, pharmaceutical and bio firms, not to mention its leading money management and financial services base. These factors support one of the most vibrant office, residential and retail markets in the nation. Often overlooked, Boston’s industrial market may not be as glamorous as gleaming new office and multifamily projects rising along the waterfront, but its steady performance and strong recovery are impressive nonetheless. Vacancy in Boston’s 117 million-square-foot industrial market declined 1 percent between the second quarter of 2013 and mid-2014, from 13.2 percent to 12.1 percent. A paucity of new construction and deliveries suggests further vacancy declines. Only 41,000 square feet of industrial product has been delivered through midyear, and 76,000 square feet was under construction at that point. Looking ahead slightly, the industrial market is on track to absorb approximately 1.4 million square feet in 2014, with 680,000 square feet of absorption recorded through June. This total would exceed 2011 and 2012 totals but trail 2013’s 1.8 million square feet of net absorption. Boston’s Bread & Butter and E-commerce High land values and competition from markets such as Central and Northern New Jersey, which can serve broader populations …
The Los Angeles industrial market continues to lead the country with the lowest vacancy of any industrial market. The combination of the overall market’s size and lack of inventory continues to put upward pressure on rents. Not only is there limited inventory, but a lack of quality product puts top economical facilities in high demand. The inability to build new product readily, combined with increasing demand, changes the focus of the marketplace going forward. As rents for high-quality properties continue to rise, developers and land owners are looking for ways to redevelop existing product to take advantage of this need. A number of redevelopment projects have recently commenced construction, and many of those properties are already pre-leased prior to completion. This increased demand also gives owners of older, less functional properties the ability to spend the necessary funds to upgrade their facilities with the anticipation of receiving higher rents and a return on their investment. The increase in demand from international commerce through the Port of Los Angeles, combined with growth in the manufacturing, aerospace and healthcare sectors, have all assisted in this overall increase in demand. The need for third-party logistics companies to acquire large chunks of space to …