Archive for February, 2013

Feb
20

Real Data: Raleigh Apartment Market Snapshot

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The new construction boom in the Triangle is well underway with over 9,200 units currently under construction and another 6,300 units proposed to be built. The apartment market remains very healthy despite the number of units under construction. The average vacancy rate is now 5.5%, which is the lowest rate reported since 1998.

The average rental rate for an apartment in the Triangle is now $868 per month. New apartments still in lease-up continue to command the highest average rent at more than $1,400 per month, while older apartments that are more than 30 years in age rent for less than $700 per month on average.

The outlook remains bright for the Triangle apartment market. As the wave of new supply begins to come on line later this year and throughout 2014, we expect to see a modest pull back in occupancies.

Categories : Raleigh
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Feb
20

Columbia Airport to Bid on Three FTZ Buildings

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The Richland-Lexington Airport District Commission voted Monday to bid on three buildings in Foreign Trade Zone 127 adjacent to the airport.

The buildings, which total about 90,000 square feet, are used for offices and warehousing, said Dan Mann, executive director of the Columbia Metropolitan Airport. The airport already owns the land where the buildings are located and rents it to the landlords, Mann said. Rent on the land generates about $59,000 a year, he added. “The rationale is that it’s a good return on investment,” Mann said. “We think that if we bought the buildings that we could generate revenue greater what we generate now.” The rent revenue, Mann added, would be a source of income for the airport that’s not tied to airlines.

“Airlines come and go — it’s a tough business — but this is more a stable line of revenue,” Mann said, adding that the buildings’ occupancy rate is about 82%.

READ MORE HERE

Categories : Columbia
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Feb
19

Self Storage Market on the Rebound

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Despite the difficult economy and market challenges during the past four years, self-storage as an asset class has continued to provide solid performance and stable returns for investors. Once dominated by mom and pops, or small, independent owner/operators, the self-storage industry has evolved into a top-performing asset class during the past decade.

Though once barely on the radars of major investors, self-storage has taken off among institutional-level investors in recent years. Since 2010, real estate investment trusts have demonstrated an almost insatiable appetite for properties larger than 45,000 net rentable square feet in the top 25 metropolitan statistical areas. In 2011, self-storage REITs boasted a handsome return of 35.4 percent — the strongest of any REIT — for the second consecutive year, according to the National Association of Real Estate Investment Trusts.

READ MORE HERE

Categories : National News
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Feb
19

“Dilapidated Buildings Act” Bill Introduced

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A bill of interest to the real estate community was introduced last week.

S. 375: This bill, sponsored by Senators Hutto, Larry Martin, and Johnson would enact the “Dilapidated Buildings Act” to provide that a municipality may bring a cause of action against the owner of a property not in substantial compliance with certain municipal ordinances. The bill has been introduced in previous sessions and received hearings in House and Senate subcommittees. Last session, interested parties were asked to meet and resolve any differences they may have with the bill.

The bill was introduced on 2/12//13 and referred to the Senate Judiciary Committee.

LINK TO BILL HERE

 

 

Categories : South Carolina News
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Feb
18

Fitch: Market Poised for Bulk Sales in Commercial Sector

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The market is now poised for many banks to begin unloading nonperforming assets—particularly commercial real estate—in the form of bulk sales, according to Fitch Ratings.

Tightening yield spreads in the commercial market, pressure from regulators regarding loss reserve positions, and limited financing will prompt banks to unload nonperforming commercial assets over the next 12 to 18 months, according to the ratings agency.

“We see tightening risk spreads reflecting an influx of yield-starved investors such as hedge funds, high-yield asset managers, and other lightly regulated entities seeking higher returns in a continued low interest rate environment,” the agency stated.

READ MORE HERE

Categories : National News
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Feb
18

Columbia Medical Office Space Vacancy at 6.4%

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The medical office vacancy rate for the Columbia market was cut almost in half to 6.4% at the end of 2012 as the industry expanded to serve patients’ needs and respond to changes in the health care delivery systems, Colliers International reported today.

The Columbia commercial real estate firm added that year-end vacancy rate for 2011 was 11.9%.

New medical development has been taking place in suburban submarkets rather than in the downtown Central Business District where the vacancy rate dropped to 1.7% at year’s end, Colliers said.

The vacancy rate for suburban medical office space was 7.2% at the end of 2012, nearly five percentage points below 2011’s closing figure.

READ MORE HERE

Categories : Columbia
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Feb
14

Colliers Releases Year End Charleston Retail Report

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Colliers International has released their Year End 2012 Retail Market report for Charleston. A few highlights include:

  • King Street continues to see the highest lease rates due to the retail sales volume. In addition, King Street’s new acclaim as a “Top 10 Retail Shopping Street” in the nation continues to attract national retail tenants and cater to the tourist retail market.
  • Suburban vacancy rates declined to 8.22% at year-end 2012 from 9.18% a year ago. The decrease in vacancy in the overall market can be attributed to the increase in local retailers opening shops due to the availability of financing.
  • Boeing’s multiplier effect throughout the state ripples down to Charleston retail.
  • Developers are prepared to develop new product based on current vacancy rates.
  • Average suburban asking lease rates remained steady at $15.46 PSF NNN due to big box spaces leasing at lower rates.
  • National and international attention from the media over the past couple years puts Charleston center stage with other global retail markets.

Download the PDF report HERE

Thanks to John Orr, CCIM for submitting this!

Categories : Charleston
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Feb
13

Capstone Apartment Advisors Releases Greenville/Spartanburg Report

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Charlotte-based Capstone Apartment Advisors has released it’s Winter 2013 Multi-Family Market Summary and Activity Update for the Greenville-Spartanburg MSA. Click on the chart below to download the PDF report

 

Categories : Greenville
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Feb
13

Are Any of the “Top” Apartment Markets in the Carolinas?

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What makes an apartment market a “top” market?

Is it single-digit vacancy rates and double-digit rental rate growth? Can investors simply look at the most recent data from industry researcher Axiometrics Inc. and make their decisions based on numbers alone? If they do, they might end up investing in markets that are performing well today but lack any future growth prospects.

Or should investors take their cue from Wall Street and stick to the coastal markets—the so-called Sexy Six that regularly attract institutional investors? In doing so, investors might end up competing with every other investor and paying cap rates below 4 percent for assets that have little or no upside.

“You don’t want to confuse rent growth, occupancy or architectural attractiveness with the top markets for investments,” warns Jeffrey Friedman, chairman, president and CEO of Associated Estates Realty Corp., a Richmond Heights, Ohio–based apartment REIT with a portfolio of 52 properties containing 13,950 units in 10 states.

READ MORE HERE

Categories : Charlotte
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Feb
12

Charleston Retail Report Released by Lincoln Harris

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Lincoln Harris has released their 4Q 2012 Charleston Market Retail Report focused on the area’s retail market.

Click the logo above to download the PDF of the report.

 

 

Categories : Charleston
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Feb
12

City of Columbia Seeks ULI Input

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A national panel of experts in planning and executing development efforts is in Columbia to try to break through longstanding, competing interests in the city center that hold back well-intentioned studies that have gathered dust.

Nine volunteers from as far away as California, Colorado and Washington, D.C., are joining two South Carolinians as part of an Urban Land Institute panel, said Fred Delk, director of one of Columbia’s development groups.

The goal is to devise a plan that makes Columbia’s city center more accessible and vibrant, including making it more pedestrian friendly.

This panel is sponsored by business organizations that often compete for the dollars that accompany growth, Delk, of the Columbia Development Corp., said Monday. None of the $60,000 to defray the panel’s travel expenses comes from city funds, he said.

READ MORE HERE

Categories : Columbia
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Feb
12

Spartanburg’s Valley Creek Apartments Sold

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Mark Boyce, of Marcus & Millichap represented the seller in the sale of Valley Creek apartments at 9085 Fairforest Road, Spartanburg, SC.  The sale price was $3,440,000 ($33,725/unit). The cap rate reflected is below 8%.

Valley Creek is comprised of 102 units and is located at 9085 Fairforest Road, Spartanburg SC, 29301. The exteriors have been recently renovated and the asset offers great visibility and traffic counts from Fairforest Road. The property is less than two miles from both I-26 and I-85 business route and centrally located to downtown Spartanburg and Greenville, SC.

Valley Creek was constructed in 1973 of wood framing and brick and vinyl siding. The roofs have recently been replaced and are pitched composite shingle. The vinyl siding and windows have also recently been replaced. The property consists of seven, three story buildings, a laundry facility and leasing office. The property offers a unit mix of one, two and three bedroom floorplans. There are 21 one bedroom/one bath units at 840 square feet, 60 two bedroom, 1.5 bath units at 1050 square feet and 21 3bedroom, two bath units at 1200 square feet. All units have central heating and A/C. There is also a pool, playground, laundry facility, fitness center, picnic barbecue areas and business center with free Wi-Fi.

Categories : Spartanburg
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Feb
11

Feasibility of Downtown Conway Hotel Being Explored

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Conway residents and businesspeople will know in less than two months if it makes sense to open a hotel in the downtown area.

Within three months, they should see what Conway can do to attract new businesses and people to the historic downtown.

The city last studied downtown marketing strategy in 2007, but much has changed since then. The idea of a downtown hotel, Mayor Alys Lawson said at a Monday morning meeting, “is not a new thing. It’s something that needs to be revived.”

A committee overseeing the two studies and five of seven City Council members met with representatives of the two firms that will do the studying for an initial overview of the scope of their work and how it will be done.

READ MORE HERE
Categories : Conway
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Feb
11

Proposed Bohemian Hotel Charleston Approved

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A Charleston zoning board has approved a new hotel with a rooftop terrace and bar downtown — but only if the developers agree to honor earlier closing hours.

The city’s Board of Zoning Appeals-Zoning panel this week gave its okay for a new 50-room hotel at the corner of Meeting and Wentworth streets.

The property is anchored on the site of a former book store but has been vacant and unused for years.

Developers from the Kessler Collection, who want to build what is being called the Bohemian Hotel Charleston, want to erect a three-story boutique hotel that will feature an added roof-top terrace connected to a bar and dining area.

READ MORE HERE

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Feb
11

New Retailers Highlight Columbia’s Retail Market

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The Columbia area ended 2012 with the lowest vacancy rate in its retail space in more than three years, a new report shows.

So what does that mean to you? More stores and more shopping.

People have more money in their wallets to spend as the economy improves from the worst recession in a lifetime and the unemployment rate declines. And that means retailers are snapping up spaces to get a piece of the action.

“Growing cities and populations are sought after by retailers looking to expand and branch out into new cities making Columbia a target,” reads the research report from Colliers International.

 READ MORE HERE

Categories : Columbia
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