Archive for June, 2013

Jun
27

Greenville/Spartanburg Apartment Vacancy at 7.3%

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Real Data has released their June 2013 Greenville-Spartanburg apartment report. A few key figure include:

  • The current overall occupancy is 92.7%
  • Over 500 units were added to the supply during the past six months
  • The average monthly rent increased to $749 over the past six months
Categories : Greenville, Spartanburg
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Jun
27

We are Appraising in Augusta/Aiken

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My appraisal firm, Integra Realty Resources – SC, has been doing a lot of commercial appraisal work in the Augusta, GA and Aiken, SC markets recently. If we can assist with your appraisal needs in that region, please let me know. As always, we work statewide, with emphasis on Columbia, Greenville, Charleston, Florence, Anderson and the Hilton Head/Bluffton regions.

Michael Dodds, MAI, CCIM

Categories : Aiken, Augusta, INTEGRA NEWS
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Jun
26

SC Abandoned Buildings Revitalization Act Signed

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A state tax credit seen as an incentive for the rehabilitation, renovation and redevelopment of abandoned buildings has been signed into law by Gov. Nikki Haley.

The Abandoned Buildings Revitalization Act, which is intended to revive languishing real estate, applies to projects started in tax year 2013.

An abandoned building is defined as a structure on which at least 66% of the space has been closed continuously to business for at least five years. The bill allows a taxpayer a credit of 25% of the actual rehabilitation expenses incurred at the building site. The bill includes a $500,000 individual cap on the tax credit benefit.

Abandoned buildings often result in unmarketability of property, high crime and an exodus of families and businesses, according to the bill.

READ MORE HERE

Categories : South Carolina News
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Jun
25

Rock Hill Office Park Approved

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Rock Hill City Council Monday formally approved what’s known as the Downtown East project.

The public-private partnership between the city and Rock Hill-based Comporium Communications includes a new office building, park and four-story garage on the site of the former King Funeral Home and Municipal Parking lot on East Main Street.

As presented last night, Comporium will build a 48,000 square-foot office complex and pay for the construction of a fountain at the future Downtown East Park, while the city will cover the cost of building a parking 196-space parking garage, and the park itself.

READ MORE HERE

Categories : Rock Hill
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Jun
20

Hilton Head Real Estate Market Rebounding

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May was another solid month for the real estate market on Hilton Head Island and surrounding areas.

Total sales for the month were up 6 percent compared to May 2012, and median sale prices rose 18 percent over the same period to $275,000, according to data from S.C. Realtors.

During the first six months of the year, median prices were up 11.1 percent for the region that includes Hilton Head and greater Bluffton, and total sales were up 9.3 percent, the S.C. Realtors data show.

James Wedgeworth, of James Wedgeworth and Associates realty firm, says the market has already hit bottom and the recovery has taken hold. The biggest surge has been in the lower end of the market, he said, while interest in resort-style properties selling for $1 million and up is still sluggish.

READ MORE HERE

Categories : Hilton Head Island
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Jun
20

Reis: Office Market Cap Rate Trends

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The office market followed fourth quarter’s impressive performance with continued momentum. After the mean cap rate compressed by 70 basis points during the fourth quarter, it compressed by another 30 basis points during the first quarter of this year to fall to 6.7%. This is the lowest that the mean cap rate has been since the third quarter of 2008, before the market hit the skids, when it stood at 6.4%. Although the mean office cap rate has been somewhat idiosyncratic over the last few years, at this juncture that kind of cap rate expansion seems unlikely. The mean cap rate might continue to jump around in the future, but a recovering office market should keep cap rates compressing for the foreseeable future.

In contrast, the 12-month rolling cap rate is not approaching the low levels that were reached before the market imploded. The 12-month rolling cap rate is still approximately 80 basis points above where it bottomed during the third quarter of 2008. We will need to see more than two quarters of compressing mean cap rates if we are to test that low, which indicates we should pay close attention to cap rates in the coming quarters. But if the 12-month rolling cap rate starts to test historically-low cap rates, that would mean that the recovery is becoming more entrenched and investors are buying office properties in anticipation of improving fundamentals over the medium-term.

 

Categories : National News
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Jun
19

Columbia Apartment Market Overview

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Capstone Apartment Partners has released their market report for Columbia, SC. Click on the photo below to access the report.

Categories : Columbia
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Jun
19

PKF: Expect Strong Hotel Profits In 2014

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U.S. hotels are poised for significant gains in all the major metrics in 2014. PKF Hospitality Research LLC is projecting that U.S. hotels will enjoy a 7.7 percent increase in revenue per available room (RevPAR) in 2014, along with a 15.4 percent boost in net operating income (NOI).

“We expect the factors that have inhibited lodging performance during the first half of 2013 will dissipate as the year goes on,” says Mark Woodworth, president of Atlanta-based PKF Hospitality Research. “By 2014, any uncertainty caused by fears of fiscal cliffs and sequestration should be alleviated, thus resulting in improved attitudes among hotel guests, owners and operators.”

One lingering concern among hoteliers may be the recent rise in interest rates. “Moody’s Analytics, our source for the economic forecasts that drive our econometric models, has been projecting a 150 basis point increase in interest rates by year-end 2014. Accordingly, our positive lodging forecasts do incorporate any detrimental influence this may have on investments and inflation,” notes Woodworth.

READ MORE HERE 

Categories : National News
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Jun
18

New SC Bill Creates Incentives for Development

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On Tuesday June 11, Governor Haley signed into law the Abandoned Buildings Revitalization Act (ABRA) creating tremendous opportunity for towns, cities and counties in the state that have been blighted by empty and under-utilized buildings.

Here is how ABRA works.

Any commercial building that has at least 66% vacancy for more than 5 years qualifies for a 25% state income tax credit earned against the costs of rehabilitation.

The benefits of ABRA impact both rural and the larger cities and counties with a stepped approach to qualifying redevelopment projects. For those abandoned places in municipalities of less than 1000 persons, the minimum project investment that triggers the tax credit is only $75,000. For towns and counties with populations of 1,000 to 25,000, the minimum project size must be $150,000, and for any communities whose populations exceed 25,000, the project minimum is $250,000.

READ MORE HERE

Categories : South Carolina News
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Jun
18

2Q PwC Real Estate Investor Survey

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I just reviewed the 2Q  PwC Real Estate Investor Survey™. Of the ten national property sectors, only one shows an increase in cap rates (office – up 5 bp). The remaining sectors reflect decreases ranging from -3 bp (apartments to -40 bp (regional malls. Two property types remained unchanged.

From the report:

“The combined average overall capitalization rate (cap rate) for the Survey’s 34 markets, excluding hotels, development land, and the secondary office market, falls to 6.91% this quarter, marking the twelfth consecutive quarterly decrease and the highest quarterly decline since the end of 2010.”

I would post the cap rate chart from the report, but I got a nasty e-mail from PwC last time….

Michael B. Dodds, MAI, CCIM

Categories : National News
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Jun
18

37 Lexington Lots Sold for $32,000 Per Lot

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Colliers International’s Jordan Hammond brokered a $1,184,000 sale of 37 lots in Lexington Heights subdivision to S.C. Pillon Homes, Inc./Crown Communities. Hammond represented the seller, Heights Development. Lexington Heights is located off of Old Chapin Road in the Town of Lexington.

Categories : Lexington
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Jun
17

Charlotte’s Carmel Executive Park to be Sold

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A Florida real estate firm has agreed to purchase Carmel Executive Park, a six-building office complex in southeast Charlotte, from Pizzagalli Properties.

An affiliate of Adler Group is scheduled to close on the purchase of Carmel Executive Park before Sept. 1, and representatives of the Miami-based real estate firm were expected to visit the property and meet with tenants this week as part of their due-diligence efforts, according to a letter sent to tenants by Pizzagalli Properties earlier this month.

Fred Johnston, a senior vice president with Pizzagalli, confirms the agreement with Adler but declines to discuss the negotiated sales price for the park, which is at the intersection of Carmel and Pineville-Matthews roads.

READ MORE HERE

Categories : Charlotte
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Jun
17

SC Outpaces Nation in Manufacturing Growth

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South Carolina has one of the fastest growing economies in the U.S. and has one of the fastest growing manufacturing sectors in the region and nation, according to a recent U.S. Commerce Department report. South Carolina’s Real GDP growth rate of 2.7 percent put it above the national average of 2.5 percent and the southeastern regional average of 2.1 percent.

The report, released by the U.S. Department of Commerce’s Bureau of Economic Analysis, ranked South Carolina’s economy as the 12th fastest growing in the nation, and tied with North Carolina as the fastest growing state on the East Coast. In addition, South Carolina had the fastest growing manufacturing GDP on the East Coast.

“South Carolina is outpacing the region and nation in GDP growth metrics,” said South Carolina Gov. Nikki Haley. “This tells me that our strategy is working: grow manufacturing, grow jobs. The race is on.”

READ MORE HERE

Categories : South Carolina News
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Jun
14

Hotel Swimming Pool of the Week

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In Singapore….

Categories : Uncategorized
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Jun
14

New Shopping Center for Summerville

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Summerville has suddenly picked up the pace with new retail development, some of them tying their future to several big housing and commercial developments cropping up to the east of Interstate 26 and Highway 17-A.

At least seven new shops will open soon, and another new shopping center is on the way.

Gramling Brothers Real Estate & Development Co. will begin work in the next 90 days on a nearly 60,000-square-foot shopping center where the former Strobel Tire, Auto and Truck Service stood at 1101 N. Main St., just south of Berlin G. Myers Parkway, according to Gramling’s Mikell Harper. The six-acre parcel will include a 40,000- to 50,000-square-foot grocery store and another anchor. Speculation is that Earth Fare is an option. An Earth Fare spokeswoman did not return a call or email for comment Wednesday.

READ MORE HERE

Categories : Charleston, Summerville
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