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Investments
CB Richard Ellis Realty Trust Buys Best Buy Warehouse
Aug 07, 2009
CB Richard Ellis Realty Trust acquired a new 238,370-square-foot state-of-the-art suburban Boston warehouse/distribution building built to suit for Best Buy Stores, which is occupying it on a long-term lease. Located at 140 Depot St. in Bellingham, Mass., the center is expandable and features pre-cast concrete construction, cross-docking, a 36-foot clear height, ESFR sprinklers and excess trailer parking. It will be used primarily as a regional distribution center for home delivery of large items, along with some service/repair and dispatching and scheduling work.
Exclusive Yellowstone Club Sells for Only $115M
Aug 06, 2009
Bargain prices for namebrand merchandise. No, it isn’t a sale at Macy’s
or Nordstrom, it is the market for resort properties. The sale of the
exclusive ski lodge for the rich and famous in Big Sky, Mont. – the
Yellowstone Club – was finalized this week for $115 million. Reports
show that the resort could have sold for somewhere around $400 million
just a year ago.
CBRE Investors: The Time to Buy is Now
Aug 05, 2009
For the most part, the investment community has been holding back on
commercial real estate acquisitions, waiting and waiting for the market
to hit bottom. But according to a new report by CB Richard Ellis
Investors, while the bottom may not be at hand just yet, it's close
enough.
Net Lease Players Thinking Small to Get Deals Done
Aug 04, 2009
While the net-lease investment market remains sluggish in the face of
the lingering economic uncertainty, buyers and sellers still looking to make deals are finding it necessary to adapt their strategy.
For some, that means simply making fewer moves. But others have been
able to stay active by setting their sights on smaller deals.
More CRE Investment Projected for Remainder of Year
Aug 03, 2009
Foreign real estate investors project their investments for the rest of 2009 will substantially out-strip investments completed year-to-date,while equity investors expect they will place seven times more than current year-to-date investments, according to the results of a recent survey released by the Association of Foreign Investors in Real Estate.
Prices Drop in Second Quarter, MIT Index Finds
Aug 03, 2009
Prices for commercial real estate dropped at a record level in the second quarter despite an increase in sales, according to an index developed by the Massachusetts Institute of Technology Center for Real Estate. In a report released on Monday and first appearing on Reuters, the center quoted its index as finding that property sold by major institutional investors dropped 18.1 percent, to a level that is down 22 percent for the year, 32 percent from a year ago and 39 percent from its mid-2007 peak, despite transaction volume that increased for the first time since last summer. The decline is greater than the 27 percent drop in the late 1980s/early 1990s and even with it when adjusted for inflation, which brings both periods to a 41 percent drop.
Cadillac Fairview Buys 49% Interest in NY Macerich Center
Jul 31, 2009
Cadillac Fairview Corp. purchased a 49 percent interest in Macerich's Queens Center in the New York City borough of Queens for $150 million in net cash. The eighth joint venture between the two firms, the venture gives Canadian Cadillac Fairview, wholly owned by the Ontario Teachers' Pension Plan, entree to New York City. Queens Center is the top-performing asset in Macerich's portfolio: The 966,499-square-foot urban retail center, which at year-end 2008 was 97.5 percent occupied, was at that time producing annual mall sales of $876 per square foot. Macerich purchased it in 1995 and redeveloped and expanded it in 2004.
$2.2T of Properties Currently at Risk, RCA Warns
Jul 30, 2009
There's a great deal of trouble on the horizon for a bevy of commercial
property owners faced with near-term refinancing needs--about $2.2
trillion in trouble, according to a new U.S. Capital Trends report by
global commercial real estate research firm Real Capital Analytics. The
practically inconceivable figure represents the properties purchased or
refinanced after early 2004 that have since experienced a decline in
value--a decline that will make the challenge of securing refinancing
in the inhospitable credit market all the more difficult.
New Firm Banks on NYC Multi-Family Market
Jul 29, 2009
The current economic climate is certainly putting a drag on many in the
commercial property business. But Kevin Salmon is betting that now is a
time of opportunity. To that end, Salmon has launched Salmon and
Marshall Real Estate Investments, a new firm that will provide
investment sales and consultation services in Manhattan’s apartment and
condominium markets.
AMB Sews Up $125M LAX Parcel Sale
Jul 29, 2009
AMB Property Corp. has completed the $125 million sale of a land parcel
at Los Angeles International Airport to Los Angeles World Airports, the
owner of LAX.
Economic Update - Housing Treads on the Bottom?
Jul 24, 2009
Could spring 2009 have been the housing bottom everyone has beenwaiting for since the pop of the bubble? Residential real estatespecialists hope so. According to the National Association of Realtors,U.S. existing home sales were up 3.6 percent in June to an annualizedrate of 4.89 million. That's more than economists were predicting, andthe most since October 2008.
Post Sells Atlanta, Fairfax Properties for $100 Million
Jul 24, 2009
Post Properties Inc. sold Post Ridge in Atlanta to a locally based entity affiliated with Centennial Holding Company L.L.C. for $44.8 million following Monday's sale of Post Forest in Fairfax, Va., to an entity affiliated with Pantzer Properties Inc. for $57.5 million. CB Richard Ellis Inc. brokered the most recent transaction, while the Post Forest deal was brokered by Holliday Fenoglio Fowler L.P. The REIT expects to report net gains of approximately $54 million relating to the sales.
CRE Prices Continue to Drop in May, Says Moody’s/REAL Index
Jul 23, 2009
As the economic uncertainty continues, real estate prices continue to
fall. The Moody's/REAL National All Property Type Aggregate Index from
Real Estate Analytics L.L.C. measured 125.04 for May, a decrease of 7.6
percent from the previous month. That represents the second largest
one-month decline after April’s 8.6 percent drop. The index, which has
captured price data through the end of May 2009, is now 28.5 percent
lower than it was a year ago and 34.8 percent below the peak measured
in October 2007.
With $210M Fund, Marcus Capital is Latest Firm to Seek Investment Bargains
Jul 23, 2009
Looking to take advantage of the current bargains to be had in the
investment market, Boston-based real estate investment firm Marcus
Partners has closed Marcus Capital Partners Fund I with $210 million in
capital commitments. The fund will cast a wide net, pursuing
diversified investments including office, bio-medical, medical office
and light industrial properties.
Economic Update - Panning for Gold in CRE Debt
Jul 22, 2009
Federal Reserve Chairman Ben Bernanke, high oracle of the U.S. economy,
began two days of testimony before Congress on Tuesday, and said that
things will slowly get better, eventually. He also noted that he and
his banking brethren are watching developments in the commercial real
estate industry--that ticking time bomb--with all the attention that a
ticking time bomb deserves. Meanwhile, down in the trenches, there's a
gold rush of sorts going on to find profits in real estate debt.
16-Property Healthcare Portfolio Snapped Up in $162M Cash Deal
Jul 21, 2009
Grubb & Ellis Healthcare REIT Inc., currently among the minority of
real estate investment concerns that have the cash on hand to make big
purchases, has signed an agreement to acquire a 16-building healthcare
property portfolio in metropolitan Greenville, S.C., from Greenville
Hospital System. The $161.6 million deal will allow the hospital to
lease back the portions of the 855,000-square-foot portfolio of medical
office and healthcare related facilities it currently occupies.
RaceTrac Initiates Sale-Leaseback Program
Jul 20, 2009
RaceTrac Petroleum Inc., which owns and operates 530 convenience stores
and gas stations in 12 states, has tapped CB Richard Ellis Inc.'s
global corporate services unit to exclusively manage a sale/leaseback
program..
Economic Update - Homebuilding Unexpectedly Perks Up, For Now
Jul 20, 2009
The residential market made a surprising turn on Friday, with the U.S.
Department of Commerce reporting that housing starts were up 3.6
percent in June when compared with May: an annualized total of 582,000
units versus 562,000 units. Economists weren’t expecting that many.
JLL: Hotel Market Conditions Remain Murky
Jul 20, 2009
Even as more and more preconditions of a global economic recovery are
being met, the path toward a commercial property market rebound is
uneven and yielding divergent regional trends. Occupancy, ADR, property
values, transaction pricing levels, and debt availability are all
showing evidence of this uncertainty, according to a new report by
Jones Lang LaSalle.
Santa Clarita M-F Trades for $23M
Jul 17, 2009
A 158-unit multi-family property in Santa Clarita, Calif., has traded
for $23 million in what a firm involved in the deal says is the largest
multi-family transaction in the region in three years.
CalPERS-First Washington JV to Replace Macquarie in Partnership with Regency Centers
Jul 17, 2009
Macquarie CountryWide Trust agreed to sell the majority of its interest in Macquarie CountryWide-Regency II L.L.C., a four-year-old partnership with Regency Centers Corp. that owns 86 retail shopping centers valued at $1.7 billion, to Global Retail Investors L.L.C. , a joint venture between the California Public Employees' Retirement System and an affiliate of First Washington Realty Inc. The phased sale will result in Global Retail Investors owning 60 percent of the partnership, with Regency having the option to increase its ownership from 25 percent to 40 percent. Otherwise, the remaining interest would be sold to Global Retail Investors or elsewhere, depending on two possible options.
Prudential Executives See More Pain but Some Improvements
Jul 16, 2009
With unemployment still rising, Prudential executives expect more pain
to come for the commercial real estate market, but they also see some
signs of better health, according to their assessment of the industry
during yesterday’s mid-year commercial real estate outlook.
760,000SF Sale a Jolt for Slow LA Industrial Market
Jul 16, 2009
Despite sale and lease activity in the Los Angeles industrial market
well off from just a year ago, Westcore Properties and Dune Real Estate
Fund II have purchased a seven-building portfolio containing more than
760,000 square feet of L.A.-area industrial properties.
JV Makes $25M Virginia Retail Play
Jul 16, 2009
A joint venture between Spectrum Partners L.L.C., Alex. Brown Realty
Inc. and Potomac Capital Advisors, has acquired Westgate Plaza Shopping
Center in Manassas, Va., for $25 million from Principal Real Estate
Investors.
Grubb & Ellis Healthcare REIT to Buy South Carolina Portfolio
Jul 16, 2009
Grubb & Ellis Healthcare REIT Inc. agreed to purchase a 16-building portfolio from Greenville Hospital System of Greenville, S.C., including approximately 855,000 square feet of medical office and related space, for $161.7 million. The hospital system is among the largest healthcare service providers in the state and will continue to occupy 83 percent of the portfolio, most of which is on or adjacent to its hospital campuses, under a long-term lease agreement arrangement.
Manhattan Office Market Decline Slows
Jul 15, 2009
Manhattan leasing activity increased in June and the monthly vacancy
rate held steady for the first time since February 2008, which together
with some otherindicators and more may show some steadying of
commercial real estate, particularly in the office market, according to
a midyear report released by Cushman & Wakefield.
Furniture Maker Snaps Up 439,000 SF of Industrial Space in California's Inland Empire
Jul 14, 2009
In what is being described by industry players as the second-largest industrial user-sale transaction in Southern California this year,Ashley Furniture Industries Inc. has acquired a two-building portfolio totaling 439,000 square feet in the Cooley Ranch Industrial Park in Colton, Calif., a submarket of the Inland Empire. Overton Moore Properties sold the vacant buildings about 18 months after purchasing them.
Despite Hotel Sector Slump, W San Fran Commands $90M
Jul 08, 2009
The current economy, plagued by job losses galore and belt-tightening
on the business and leisure travel fronts, has been more than unkind to the
hospitality industry, to say the least. Despite the inhospitable
climate, Starwood Hotels & Resorts has nabbed a buyer for its W San
Francisco hotel. Keck Seng Investments (Hong Kong) Limited has agreed
to fork over $90 million for the 404-room property.
In Supply-Constrained Vancouver Market, 204,000SF Office Trades in Sale Leaseback
Jul 07, 2009
In the midst of the sluggish investment market, where most real assets
that are selling are on the smaller end of the spectrum, a major office
property in Vancouver has been acquired by Kingswood Capital Corp. The
21-story, 204,000-square-foot Grosvenor Building, located in the city’s
Downtown, was sold by property investor and developer Grosvenor
Americas, which will continue to make its home at the tower under a
leaseback agreement.
Looking to Re-Enter Investment Market, Steelbridge Hires Cushman Vet Caplin
Jul 07, 2009
Steelbridge Capital has tapped Jay Caplin, formerly executive director
of Cushman & Wakefield Inc.’s capital markets group, as managing
principal. In his new role, Caplin will play a major role in
Florida-based Steelbridge’s return to active investment in commercial
property market—a game the firm stayed out of in recent years of sky
high pricings and cap rate compression.
Saudi Fund Names US, UK Property Investment Targets
Jul 06, 2009
Jadwa Investment, an investment management firm with ownership by the Saudi royal family, has targeted U.S. and U.K. commercial real estate as good focuses for investment, according to the Financial Times. With its first action a bid on a $1.1 billion U.K. sale by insurance company Aviva in partnership with CIT, the newspaper quoted its chief economist, Brad Bourland, as saying it is eying "areas where there is currently a favourable exchange rate, attractive asset prices and a historical connection," which includes the United States and the United Kingdom.
Net-Leased CVS Property Trades in Illinois
Jul 06, 2009
Marcus & Millichap Real Estate Investment Services has arranged the
sale of an 8,540-square-foot single-tenant net-leased property, located
in Westville, Ill.
Stable Skilled Nursing Sub-Sector Lures Health Care REIT into $55.5M Purchase
Jul 02, 2009
While many real estate investors sit on the sidelines waiting for
property prices to fall dramatically or the credit market to defrost,
National Health Investors Inc. is actively enhancing its portfolio in
one of the most stable property sectors in the current economic
climate-- skilled nursing, a subtype of the seniors housing sector. The
healthcare REIT just shelled out $55.5 million in cash for four
skilled nursing facilities, all of which will be leased back to the
seller and tenant, Legend Healthcare L.L.C.
Record Central/Eastern European Deal Closes Despite Global Real Estate Downturn
Jul 01, 2009
Warsaw’s first certified green building also earned the recognition as
the largest commercial real estate transaction so far this year for
Central and Eastern Europe, selling for €117 million, or $164 million.
But commercial real estate markets in many parts of the world continue
to fact debt repayment issues, declining values and deteriorating rents
and occupancies in different combinations.
Blackstone Closes Latest European Real Estate Fund with $4.3B in Commitments
Jun 30, 2009
As is the case in the U.S., the commercial real estate market in Europeis in flux, but when those price tags begin to drop, as is widelyexpected, the Blackstone Group will be perfectly prepared to pounce onthose golden opportunities. The investment company has just completedthe final closing of Blackstone Real Estate Partners Europe III, with atotal of approximately $4.3 billion in equity capital commitments.
Economic Update - Worldwide CRE Still Feels Recession's Reverberations
Jun 30, 2009
Sometimes lost in the din of bad economic news in the United States isthe worldwide impact of the current recession on commercial realestate. Markets everywhere have been affected to some degree, someworse than others, and players in those markets are only now beginningto sort things out, as they are here at home.
Economic Update - CRE Still Faces Stress, Distress
Jun 26, 2009
Not-quite-so-bad news still passes for good news: the U.S. Department
of Commerce has revised its estimate of the annualized contraction of
the American economy in the first quarter of 2009 to 5.5 percent,
instead of the 5.7 percent previously estimated. Still, paired with the
4Q08 annualized contraction of 6.3 percent, the six months between last
October and this March represent the poorest economic performance for
the U.S. economy in over a half century.
Angling to Capitalize on Future Apartment Market Changes, Industry Vets Form New Firm
Jun 24, 2009
The apartment market held up relatively well during the early stages of the economy's descent--but even it is now in decline. And while many investors are shying away, industry veterans Jim Butz and Greg Lamb are jumping in with both feet. The two former principals of leading multi-family developer JPI East have teamed with office and mixed-use developer Akridge to launch Jefferson Apartment Group with the intention of acquiring--and eventually--developing apartment properties in the Mid-Atlantic and Northeast regions.
Interest in Assisted Living Undeterred by Troubled Economy
Jun 22, 2009
No part of the commercial real estate industry has been spared by the economic crisis, but the senior living sector has been less brutally impacted than others have. And according to a new report issued jointly by a quintet of industry groups, the assisted living sub-sector is achieving the seemingly impossible these days--high occupancy levels.
Opportunistic CRE Investment Heats Up
Jun 18, 2009
Back in the days of the early '90s real estate depression, Sam Zell became known as a gravedancer, and it's one of the reasons he's the billionaire he is today. Now that the commercial real estate has swung into the deep doldrums that follow an enormous bubble, the distant tom-tom of a new generation of real estate gravedancers isn't so distant anymore. Investors are out there looking for distressed properties and the future profits they might offer.
New Owner of Atlantic City's Tropicana Somewhat of a Surprise
Jun 16, 2009
Tropicana Atlantic City Casino & Resort is set to come under new ownership, just over one year after owner Tropicana Entertainment L.L.C. filed for Chapter 11 protection. But it's not a big-name gaming company that will take over the property's reigns. The United States Bankruptcy Court in Camden, N.J., has green-lighted a "stalking horse" asset purchase agreement calling for pre-petition lenders--a group that includes billionaire investor Carl Icahn's Icahn Capital--to take hold of the asset in return for forgiving $200 million of debt owed by Tropicana.
New Owner of Atlantic City's Tropicana Somewhat of a Surprise
Jun 16, 2009
Tropicana Atlantic City Casino & Resort is set to come under new ownership, just over one year after owner Tropicana Entertainment L.L.C. filed for Chapter 11 protection. But it's not a big-name gaming company that will take over the property's reigns. The United States Bankruptcy Court in Camden, N.J., has green-lighted a "stalking horse" asset purchase agreement calling for pre-petition lenders--a group that includes billionaire investor Carl Icahn's Icahn Capital--to take hold of the asset in return for forgiving $200 million of debt owed by Tropicana.
RCA: Global Property Sales Volume Nears Rock Bottom--But Recovery Remains Intangible
Jun 16, 2009
As the recession continues to grip nations around the world, commercial real estate property transactions are still moving along at a snail's pace and, in general, without the premium price tags seen just two years ago. Global research and consulting firm Real Capital Analytics concludes in its most Global Capital Trends report that, while sales activity is likely to pick up soon, a full recovery is still a long way off.
New Firm Aims to Help M-F Industry Weather Storm
Jun 15, 2009
In the apartment market, job losses are starting to exact a high cost in terms of declining rents and rising occupancy levels, and for holders of multi-family debt and equity, there's more bad news on the horizon as loan maturities on overvalued assets begin to take hold over the next few years. In an effort to assist those facing the impending challenges, two industry veterans have just launched apartment consulting firm Caldera Asset Management, based out of Denver and Atlanta.
CRE Investment Finance's Sea Change
Jun 12, 2009
It's been nearly two years since the lending market for commercial real estate investment began to freeze up--first a freeze, then a full-stop for a short period in the dark days of the fall of 2008, then a "new normal" of sluggish lending, tough underwriting standards and all-around financial miasma. No one knows how long the new normal is going to last, or whether it represents a pendulum that's moved too far away from the days of easy lending that will someday swing a little ways back.
Stocks, Retail Sales Rise, But So Does Unemployment
Jun 12, 2009
Stocks were higher Thursday closing at highs for recent
months with hopes that economic recovery is on its ways, while investors
concerned that the government’s spending spree and mounting debt will lead to
inflation caused treasuries to surge as an $11 billion sale of 30-year bonds
drew the highest yield in almost two years.
While Hotel Investment Activity Languishes in the U.S., Market Remains Viable in Brazil
Jun 10, 2009
Plagued by the global recession that has slashed both business and
pleasure travel, the hotel market is suffering on an international
level and investors have backed away from buying or building in most
locations, with a few exceptions--like Brazil. According to a new
report by real estate services firm Jones Lang LaSalle Hotels, the
positive long-term growth forecast for Brazil is popping up on the
radar of those who are in the position to invest.
Despite Office Market Slump, 1M-SF Connecticut Campus Trades in $72M Deal
Jun 09, 2009
It's an office trade of such a size that has not been seen in
Connecticut, no less challenged by job losses and economic malaise than
most other markets, in quite a while. Matrix Connecticut L.L.C. has
just taken over ownership of the 1 million-square-foot Danbury
Corporate Center in Danbury, Conn., from GERA Danbury L.L.C. in a $72.4
million merger transaction. The deal is a coup for Connecticut, as well
as its neighbors, as it marks the largest multi-tenant office
transaction in the suburban New York Tri-State area so far this year.
Filene's Basement Assets Snapped Up by Men's Wearhouse in $67M Auction
Jun 09, 2009
Clothing retailer Men's Wearhouse has emerged victorious from a
feverish nine-hour auction of assets belonging to off-price chain
Filene's Basement, which fell victim to the retail market's downward
spiral and filed for Chapter 11 bankruptcy protection in early May,
just two weeks after its purchase by Buxbaum Group affiliate FB
Acquisition II. Acting through its affiliate, K&G Acquisition
Corp., Men's Wearhouse put forth the winning bid of $67 million for 17
to 20 of Filene's store leases, as well as the leases on the company's
Massachusetts corporate headquarters and distribution center, its
Maryland storage facility and-- possibly most important--the Filene's
Basement trade name.
Economic Update - Fast-Track Chrysler Reorganization Stalls
Jun 09, 2009
The Chrysler reorganization and sale to Fiat, which
was to have been a model of a quick turn-around, has hit a snag in the
form of a court order by U.S. Supreme Court Associate Justice Ruth
Bader Ginsburg. Pension funds that hold some of Chrysler’s secured loan
are objecting to the goings-on, claiming it isn’t fair to them, and so
petitioned Justice Ginsburg for the measure. It isn’t clear how long
the temporary stay will delay the sale, or whether it will kill the
sale, or whether the full court will reverse the stay in a few days.
It’s unlikely, though, that the legal wrangling will affect the fate of
the Chrysler dealerships slated for closing, or change the amount of
real estate their closing will put on the market.
Economic Update - Starwood Eyes Distressed Sector with $500M Fund
Jun 08, 2009
Yet another deep-pocketed real estate entity has jumped into the grave-dancing game—only please, don’t call it that, but rather strategic investment in distressed properties. The player is a newly formed investment company called Starwood Property Trust Inc., a creation of Starwood mogul Barry Sternlicht, which filed with the Securities and Exchange Commission late last week for a public offering that aims to raise half a billion dollars to do the distressed-property boogie. It will invest in not only physical properties, but mortgages and mortgage-backed securities.
Lack of Leverage Lends Strength, REIT Week Panel Maintains
Jun 05, 2009
The bad news is, the United States is in a Great Recession and the commercial real estate market is likely to feel continued pain during the next two years as corporate cutbacks result in weaker fundamentals. The good news is, the public equity markets have been improving in the past few months, with returns bouncing back substantially and multiples back down to more reasonable levels as the market has responded to REIT success at raising capital through secondary offerings.
Economic Update - CRE Buyers Looking for Deals
Jun 04, 2009
Turns out that the recession is still on, at least if the latest numbers from payroll firm ADP accurately reflect the state of hiring and firing in the nation. According to ADP on Wednesday, U.S. companies cut an estimated 532,000 employees from their payrolls last month, with goods producers laying off 267,000 workers, and service providers shedding 265,000 positions.
KABR Fund Takes 235,000-SF New Jersey Office
Jun 03, 2009
Newly-formed value-added real estate fund KABR Real Estate Investment Partners L.L.C. has purchased a 235,000-square-foot office building at 85 Challenger Road in Ridgefield Park, N.J., from AIG.
Signs of Life in 2Q as Sales Volume, Capitalization Jump
Jun 03, 2009
Despite overall sales figures down double digits from last year, transactions are still move forward, albeit in smaller amounts. Another good sign of real estate activity is the re-equitization of the REIT industry that continued in May as more companies deleveraged their balance sheets with equity capital raised in the public markets.
In Slow Central Valley Market, 685,000-SF Sale Makes Splash
May 29, 2009
Industrial property sales in San Joaquin County in California's Central Valley have been practically nonexistent this year, but USAA Real Estate Co. just broke the monotony with the acquisition of a 658,000-square-foot distribution facility in the city of Tracy, about an hour east of San Francisco.
Manhattan Sales Reach 25-Year Low: Report
May 29, 2009
After a rough 2008, Manhattan's property investment market has continued to take it on the chin thus far in 2009. Real estate sales in Manhattan reached a 25-year low in 2009's first quarter, according to a new report by Massey Knakal Realty Services.
As Condo Market Remains Tight, Miami Tower Scores Key Fannie Approval
May 27, 2009
In the midst of the sluggish economy and tight credit market, condominium developers are having a tough time selling units. As a result, many projects across the nation have been reverted to rental or stalled outright. But in the midst of one of the most hard-hit condo markets--South Florida--at least one developer is breathing a bit easier.
Stimulus Programs, Financial Market Intervention to Benefit CRE--But Not Right Away
May 19, 2009
The government's pumping up of the economy via various programs created by the nearly $800 billion economic stimulus package and interceding in the financial market will indirectly incite the revival of the commercial real estate market, according to a new report by Marcus & Millichap Real Estate Investment Services. But the major impact is unlikely to be felt this year.
Economic Update - AIG Unloads Choice Tokyo Property for $1.2B
May 12, 2009
American International Group is finally in the news for something other than being a multibillion-dollar black hole for the U.S. Treasury; namely, a property sale. The beleaguered insurer has inked a deal to sell the AIG Otemachi Building and a one-acre site in Tokyo to Nippon Life Insurance Co.
Rockwood Latest Investor to Close Fund, Raising $964M
Apr 29, 2009
Hoping to capitalize on an unsettled real estate environment that could ultimately lead to the "best investment period in the last 20 years," private real estate investment firm Rockwood Capital L.L.C. has closed an investment fund with some $964 million in capital commitments.
Economic Update - Bear Stearns' Bum Real Estate, Revealed
Apr 24, 2009
Bear Stearns Cos. was in the news again Thursday, in case anyone
remembers back far enough to recall the last time it was big news--a
time when the disappearance of that company into JPMorgan Chase seemed
unfortunate, but not necessarily a harbinger of vast financial problems
ahead. Which, in fact, it turned out to be.
Economic Update - Credit Woes Put Kibosh on $2.5B Midway Deal
Apr 21, 2009
Citi Infrastructure Investors--a joint venture of Citigroup Inc., John Hancock Life Insurance Co. and Vancouver Airport Services-- will be unable to go through with a deal that would have seen the group buy Midway International Airport in Chicago for $2.5 billion. After previous extensions, the City of Chicago decided not to give the group any more time to close on the deal.
U.S. Infrastructure at Crossroads: Report
Apr 21, 2009
With $132 billion having been set aside in the stimulus package for road, highway and various other transit related projects across the United States, the issue of the country's outdated infrastructure is at the forefront. The Urban Land Institute and Ernst & Young note in a new report that while the funding will certainly boost the job market, what is of even more vital importance is a long-term infrastructure plan for digging the nation out of an economic slump and shoring up the country to be competitive on an international level in the future.
A Word With ... Dale Anne Reiss
Apr 15, 2009
CPN Editor-in-chief Suzann D. Silverman spoke with Dale Anne
Reiss, who retired last June after 10 years as global director and more
than a decade more as a managing partner in Ernst & Young L.L.P.’s
real estate, hospitality and construction services practice. She
recently formed her own consulting firm, Artemis Advisors L.L.C. Now a
consultant for Ernst & Young, she last month also retained DLA
Piper as a client.
Development
Sustainability Issue Holds Strong, RICS-CPE Report Finds
Aug 04, 2009
Though the intensity of the economic crisis may be in the process ofdiminishing, it continues to have a vice-like grip on countries aroundthe world. Yet for the commercial real estate industry, investment insustainability remains a priority--although not necessarily for themost altruistic reasons. According to the second quarterly RICS-CPEGlobal Commercial Property Sustainability Survey, despite financialchallenges, real estate industry players remain willing to pay money togo green today, particularly with regard to energy consumption, inorder to benefit from cost savings tomorrow..
NJ Company Breaks Ground on Cold Storage Facility in China
Aug 04, 2009
Ground has broken on a 280,000-square-foot refrigerated warehouse at
Lingang Logistics Park in Shanghai, China, for Newark, N.J.-based
Preferred Freezer Storage. For China, the property will become the
country's largest and most sophisticated single-story cold storage
facility. For PFS, the build-to-suit structure marks the company's
entrée into China, as well as the beginning of its pursuit to
accommodate the burgeoning demand for cold storage facilities across
the country.
Transwestern Wins Nearly 500,000-SF Property Management Assignment
Aug 04, 2009
Transwestern has been awarded management of One Central Park East, a 485,720-square- foot office project Mesirow Financial Real Estate is constructing at 50 East Van Buren in Downtown Phoenix. Under construction and scheduled to open in the third quarter of 2009, the 26-story Class A property will also include 9,000 square feet of retail space and an executive fitness center. A recipient of the AIA Western Mountain Region Design Citation Award, it includes an advanced insulated window wall glass system featuring exterior horizontal and vertical shade fins to combat the harsh Phoenix sun.
Opus Property Services Reported for Sale
Aug 03, 2009
Opus Corp. is seeking to sell its property-management business, according to a report on bizjournals.com, the Web site of American City Business Journals. It quoted a company spokesperson as stating that selling off Opus Property Services would help the company renew its focus on its "core competency," along with its being a good time to sell because property management firms currently have an "appetite ... to grow their (business)." Opus' management portfolio totals about 30 million square feet of office, retail, industrial and corporate space.
McKinsey: Green Building Can Save US $1.2T
Jul 31, 2009
Investing in energy efficient buildings now will lead to as much as
$1.2 trillion in savings by 2020, according to a new study from
McKinsey & Co. In its new report, Unlocking Energy Efficiency in the U.S. Economy,
the management consulting firm forecasted just how valuable aggressive
green construction could prove to be for the United States.
$1B HUD Infusion Could Give Jump to Stalled Affordable Housing Projects
Jul 29, 2009
When the credit markets froze, so did the development of much-needed
affordable housing across the nation, but the U.S. Housing & Urban
Development is making strides in tackling the issue. The agency, acting
through its new $2.25 billion Tax Credit Assistance Program, which is
funded via the American Recovery and Reinvestment Act of 2009, has just
approved the second dispensation of approximately $1.2 billion to state
housing finance agencies in 26 states to finance the resurrection of
various affordable rental housing programs.
$4.2B Semiconductor Facility in Upstate NY Likely to Spark New Opportunities
Jul 28, 2009
After three years of Silicon Valley-based GlobalFoundries and the State
of New York working together to lay the financial groundwork,
construction of GlobalFoundries' $4.2 billion semiconductor wafer
manufacturing facility at the new 1,400-acre Luther Forest Technology
Campus in Malta, N.Y., has just commenced. Officials expect the
GlobalFoundries development to create 1,400 new manufacturing jobs, and
they are keeping their fingers crossed that the 1.3-million-square-foot
Fab 2 will spur additional investment in the area.
Highwoods, USAA Partner to Build FBI Office
Jul 28, 2009
Highwoods Properties Inc. and USAA Real Estate Co. were awarded a build-to-suit lease by the U.S. General Services Administration to develop an approximately $45 million field office for the Federal Bureau of Investigation in Charlotte, N.C. The joint venture is scheduled to begin building the 171,000-square-foot, five-story Class A office building and annex in the first quarter of 2010 and complete it in the second quarter of 2011, with certification sought under the U.S. Green Building Council's Leadership in Energy and Environmental Design program. The project is Highwoods' third for the FBI, which is a repeat client of investor USAA's as well, and both have worked extensively with the GSA overall. Highwoods will retain a 10 percent ownership interest in the joint venture, as well as receiving development fees.
CAS Launches Green Apartment Measurement Tool
Jul 24, 2009
CAS Financial Advisory Services, the asset management arm of CAS Partners, launched Green Capital Needs Assessment, designed to measure quantitatively the value of incorporating green improvements into multi-family properties. For discussion on another green tool, the Corporate Realty, Design & Management Institute's Model Green Lease, designed for use across commercial properties, log on to CPN Radio later today.
Renovated Historic Building an Example of Condo Developers Thinking Outside the Box
Jul 24, 2009
In today's stalled condo market, many developers are looking for creative ways to attract buyers. To that end, Emanon Equities, a Long Island-based real estate development and construction firm, and Ramsgard Architectural Design have turned The Seitz Building, a collapsing historic building in Downtown Skaneateles, N.Y., into a luxury mixed-use condominium complex.
Is East Asia's Vertical Retail Model Wave of Future for U.S.?
Jul 22, 2009
Vertical retailing--building retail destinations higher instead of
wider--has long been a success in cities like Hong Kong and Shanghai,
but the trend has yet to catch on in the United States. However, given
the country's growing population and dwindling pool of developable land
in major cities, the time may be just right for the nation's
metropolises to jump on the bandwagon, or so believes Charles Chan,
president of commercial real estate brokerage firm Harvest
International.
1.2MSF Project on Former Brownfield Site in California Earns LEED Certification
Jul 22, 2009
A 1.2-million-square-foot industrial park touted as the largest
speculative industrial project in the U.S. became one of the largest
overall projects in California to receive LEED certification. Developed
by Dallas-based Hillwood, the project was sold to CB Richard Ellis
Investors a year ago, but Hillwood staff recently completed the Silver
LEED certification process on behalf of the new buyer.
Prepping for a Turnaround, Hyatt Announces Plans for New Hotel in Suburban Houston
Jul 21, 2009
The severely wounded economy and ongoing job losses continue to inhibit
travel among the leisure and business sets, but the lackluster
conditions are not stopping Hyatt Hotels & Resorts from planning a
new 214-room Hyatt Place within the 190-acre mixed-use Lake Pointe
Towne Center in Sugar Land, Texas, about 20 miles southwest of Houston.
Turner to Build $93M Atlanta Office for CDC
Jul 20, 2009
Turner Construction Co. has been selected by the Centers for Disease
Control and Prevention to provide design/build services for a $93
million, 311,000-square-foot office complex.
Construction Activity to Fall Through 2010, Says AIA
Jul 17, 2009
Nonresidential construction spending is expected to decrease by 16
percent in 2009 and fall another almost 12 percent in 2010, according
to the American Institute of Architects' latest Consensus Construction
Forecast. Commercial projects will see the most significant decrease in
activity.
Carter Alliance Speaks to Growth in Medical Office Investment
Jul 17, 2009
In a prime example of how medical office properties garner investor
demand by exhibiting considerable resistance to the economic downturn,
Atlanta-based commercial real estate firm Carter formed a strategic
alliance with Align Healthcare, which provides planning and program
management services to hospitals and health systems, to develop a slate
of new Healthcare facilities.
Green Mixed-Use Project in Hawaii Moves Forward
Jul 15, 2009
Architecture firm Stoutenborough Inc. has signed been selected by theKrausz Cos. of San Francisco to handle the design of a320,000-square-foot sustainable, mixed-use community on the island ofMaui, Hawaii.
ProLogis to Develop 554,000-SF BTS Project in the Netherlands
Jul 15, 2009
Like so many real estate companies, ProLogis isn't developing spec
projects these days, but build-to-suits are a different story. The
Denver-based global industrial REIT just agreed to develop a
554,000-square-foot distribution center in The Netherlands for
Hi-Logistics, and if ProLogis has anything to do with it, more
build-to-suit transactions will materialize.
Harrah's Cherokee Kicks Off Next Phase of $633M Expansion Despite Lackluster Gaming Market
Jul 13, 2009
With the recession in full swing, fewer people are taking chances at
the gaming tables, but that is not stopping the Eastern Band of the
Cherokee Nation from moving forward with its $633 million expansion of
the Cherokee Casino & Hotel in Cherokee, N.C. Tribal leaders just
broke ground on the 532-room hotel segment of the property's massive
upgrade.
Weighing the Costs, Benefits of Green Building
Jul 10, 2009
Sustainability is a buzzword for today’s consumers and likely a
requirement for them tomorrow, noted Bobby Bowling, president of
Tropicana Building Corp. and moderator for a National Association of
Home Builders multifamily webinar, entitled “Green Building: A
Cost/Benefit Analysis.”
With Robust Retail Demand on the Horizon, Work Begins on $100M Shopping Center at Fort Bliss
Jul 09, 2009
Development in the retail sector, which began its nosedive with the
collapse of the housing and credit markets, is hardly booming. However,
the situation is quite different at Fort Bliss in El Paso County,
Texas, where the Base Realignment and Closure Act of 2005 will bring an
estimated 127,000 new military personnel and family members to the area
by 2012.
In Struggling Hospitality Market, Arizona Resort Moving Forward with $600M Renovation Plan
Jul 06, 2009
The currently anemic state of the hospitality sector has been well documented for some time now. Doubly stung by a sharp slowdown in both business travel and tourism—as well as the financing problems that have plagued the commercial property sector as a whole—it seems clear that the sector is in the midst of one of its toughest periods ever. The struggling state of the market, though, is apparently not discouraging the owners of the Arizona Biltmore Resort & Spa from moving ahead with a planned $600 million renovation project. Also undeterred is the Phoenix City Council, which okayed the plan late last week.
HUD Awards Over $1B in Recovery Act Funds to Jump Start Affordable Housing Construction
Jul 02, 2009
The U.S. Department of Housing and Urban Development is approving plans submitted by state housing finance agencies for $1 billion to jump start affordable housing programs in states throughout the country that are currently stalled due to the economic recession. Funded through the American Recovery and Reinvestment Act of 2009, HUD's new Tax Credit Assistance Program will allow 26 state housing finance agencies to resume funding of affordable rental housing projects across the nation while stimulating employment in the hard-hit construction trades.
Green Building Council Steps Up LEED Requirements
Jun 29, 2009
With an eye toward maintaining long-term sustainability, as opposed torewarding good intentions, the U.S. Green Building Council has justadded a new requirement for owners pursuing LEED Certified status fortheir properties.
Houston Mixed-Use Opens Amid Uncertain Economy
Jun 29, 2009
While Texas struggled later and possibly not as much as the rest of the country when the bottom fell out late last year, Houston’s office market continued to thrive until just recently with rising vacancies and more projects under construction. Recent delivery of projects like Citycentre’s mammoth 425,000 square feet of mixed use space right now might not be ideal timing, but developer Midway Cos. hopes to weather the difficult market.
Downtown Miami Condo Market Showing Signs of Life--Contrary to Popular Opinion
Jun 29, 2009
Rumors of the Downtown Miami condominium market's death have beengreatly exaggerated. The Miami Downtown Development Authority recentlycommissioned the Residential Closings & Occupancy Study, whichindicates that industry talk about the area's stock of new condos beingcovered in cobwebs--or predominantly empty--may not be totallyaccurate.
UN Moves Forward with Next Phase of $1B Renovation of NYC Headquarters
Jun 25, 2009
With the country well ensconced in a recession and debilitated by the
credit crunch, the clatter of construction equipment on the streets is
not an oft-heard sound--unless you are at the site of the United
Nations headquarters in New York City. In the face of a global economic
meltdown, the international organization has not missed a beat with its
$1 billion Capital Master Plan for the sweeping renovation of the 2.6
million-square-foot complex. And now that Skanska USA Building Inc. has
kicked off the next phase of the project, the comforting buzz of
building activity is not going to stop anytime soon.
Angling to Capitalize on Future Apartment Market Changes, Industry Vets Form New Firm
Jun 24, 2009
The apartment market held up relatively well during the early stages of the economy's descent--but even it is now in decline. And while many investors are shying away, industry veterans Jim Butz and Greg Lamb are jumping in with both feet. The two former principals of leading multi-family developer JPI East have teamed with office and mixed-use developer Akridge to launch Jefferson Apartment Group with the intention of acquiring--and eventually--developing apartment properties in the Mid-Atlantic and Northeast regions.
Anticipating Future Demand, Dallas Approves $514M Bond Sale for Convention Center Hotel
Jun 23, 2009
For the most part, banks still aren't lending and business and leisure travelers--inhibited by economic decline and job losses--have not exactly been escalating their travel plans, but such conditions are not stopping the City of Dallas from moving forward with its plan to develop a large luxury hotel. In a unanimous vote, the Dallas City Council has green-lighted an ordinance that paves the way for the sale of $514 million in municipal revenue bonds for the development of the $346 million Omni Dallas Convention Center Hotel, which is now scheduled to deliver in 2012.
The Green Mandate for Commercial Real Estate
Jun 19, 2009
Green building standards may not seem to be on the front burner of commercial real estate as much this year as last, simply because very little new development is breaking ground these days. Yet planning and policy shifts regarding sustainable real estate go on, anticipating the day when development will begin again.
While Other Projects Languish, $500M Suburban Boston Film Studio Takes Next Step
Jun 18, 2009
The frozen credit market and shattered economy have caused the interruption or outright cancellation of development project after development project across the country, but such is not the case for an unlikely 1.8 million-square-foot mixed-use endeavor in Plymouth, Mass., about 40 miles south of Boston. Having just secured the Plymouth Planning Board's approval of a master site plan, developers of Plymouth Rock Studios can now proceed with on- and off-site activities for the fully funded, $500 million film and television studio compound.
In Stalled Development Market, New Firm Aims to Help Banks with Non-Performing Loans
Jun 17, 2009
With development projects stalled across sectors, the need to deal with loans that have gone bad is one of the few growing niches of the commercial property industry. To that end, Diversified Properties has formed a partnership with industry veteran Jonathan Stein to form Diversified Realty Advisors, a real estate advisory and turnaround group providing lenders with interim portfolio or individual asset management services during the workout or foreclosure stage, as well as long-term strategies such as asset and construction management, acquisition support and disposition services.
With Little Opportunity in Domestic Hotel Market, MGM Eyes Cairo
Jun 17, 2009
As the U.S. hotel market continues to tumble hand-in-hand with the flailing economy, many hotel concerns are finding opportunities for projects in less hindered travel destinations abroad, and MGM Mirage is no exception. The Las Vegas-based gaming and hospitality company has just announced a partnership with Egypt's New Giza for Real Estate Development to develop a new resort just outside of Cairo, Egypt.
New Airport Puts Panama City on Track for Long-Term Growth
Jun 12, 2009
Most of the country is waiting for the economy to turn, or even for the federal stimulus to have some measurable effect on local economies, but at least one part of the country has a third option. In the Florida panhandle, in particular the Panama City area, a new international airport--under construction, scheduled for completion next year--promises economic stimulation, both in terms of business growth and real estate development.
Redevelopment of Former Auto Dealerships a Tough Prospect
Jun 11, 2009
In May, both Chrysler and General Motors cut loose thousands of dealerships --
some 789 by Chrysler as part of its bankruptcy proceedings, and then about
another 1,100 by GM even before its bankruptcy. The moves were part of the
aggressive scaling back by both companies to meet the stipulations of the
federal government's Auto Task Force.
Houston Marks a Green Milestone
May 20, 2009
As green development continues to thrive across the country, Houston’s
First City Tower has earned LEED Gold certification for an existing
building from the U.S. Green Building Council, marking a milestone for
sustainable development in the market.
Economic Update - Legacy CMBS Now Under TALF
May 20, 2009
In a major expansion of the Term Asset Backed Securities Loan Facility (TALF), the Federal Reserve said on Tuesday that investors will be able to buy existing securities backed by commercial real estate loans--so-called "legacy" CMBS. The commercial real estate industry has been pushing for this for some time, and it will at last be possible starting in July.
Philadelphia: Soon to be America's Greenest City?
May 14, 2009
If Philadelphia mayor Michael Nutter meets his goal, the City of Brotherly Love could soon be called the City of Sustainability instead. He plans to make the nation’s first capital the greenest city in America. And he has set out 15 targets to achieve that goal by 2015, before his term is up.
U.S. Infrastructure at Crossroads: Report
Apr 21, 2009
With $132 billion having been set aside in the stimulus package for road, highway and various other transit related projects across the United States, the issue of the country's outdated infrastructure is at the forefront. The Urban Land Institute and Ernst & Young note in a new report that while the funding will certainly boost the job market, what is of even more vital importance is a long-term infrastructure plan for digging the nation out of an economic slump and shoring up the country to be competitive on an international level in the future.
Leasing
Cassidy & Pinkard Wins 72,100SF Reston Leasing Contract
Jul 31, 2009
Cassidy & Pinkard Colliers has been selected by The Bernstein Cos.
to provide exclusive marketing and leasing services for 12220 Sunrise
Valley Drive, a 72,100-square-foot office building in Reston Sunrise
Park in Reston, Va.
Office Vacancies Reach Highest Point in Four Years
Jul 30, 2009
U.S. office vacancy rates have reached their highest point in four
years, and rents are falling as a result, according to a report from
Cushman & Wakefield Inc. Vacancies reached 13.7 percent at midyear,
matching second-quarter 2005 figures, though they still trailed the
decade high of 15.5 percent, reached in the second and third quarters
of 2003.
Tenant Signs on for 269,000 SF of Inland Empire Industrial Space
Jul 30, 2009
Newport Beach, Calif.-based Master Development Corp., the managing
member of Ontario Two L.L.C., has inked a tenant to a six-year lease
valued at $3.5 million in Phase II of its Thoroughbred Business Park, a
2 million-square-foot industrial park located in Ontario, Calif.
In Face of Rising Vacancy, Seattle Sees Biggest Office Renewal of Year
Jul 24, 2009
Despite more than 2 million square feet of new product completed this
quarter, Seattle’s office market saw one of the largest leases this
year when international law firm Perkins Coie L.L.P. renewed its
269,000-square-foot lease at 1201 Third Avenue, a 55-story tower in the
heart of the city’s Central Business District.
Parker, DEXUS Ink Medical Firm to 146,400SF California Lease
Jul 23, 2009
Making a splash in the sluggish office leasing market, medical
manufacturer Advanced Bionics has just signed a 10-year deal for
146,400 square feet of space in Santa Clarita, Calif. According to the
landlord, the office lease is Los Angeles County’s largest of the year
thus far.
IDI Leases 171,800 SF of Georgia Industrial Space
Jul 22, 2009
Real estate firm IDI has executed a 171,800-square-foot, five-year
lease in Lithia Springs, Ga., with Sensormatic Electronics Corp., a
provider of security and fire safety products and services for the
commercial and residential sectors.
ProLogis Continues to Pay Down Debt, Remains Active in Chicago
Jul 21, 2009
Like all commercial property players, industrial REIT ProLogis has had
to deal with the challenges of the sagging economy and sluggish leasing
market. Despite the tumultuous environment though, the firm is still
getting deals done—including some very sizable transactions, like a
250,000-square-foot lease the firm recently inked with Roosevelt Paper
Co. near Chicago. That deal was the largest splash made by ProLogis in the region during
the second quarter, during which it racked up a total of nearly 600,000
square feet in leases.
RaceTrac Initiates Sale-Leaseback Program
Jul 20, 2009
RaceTrac Petroleum Inc., which owns and operates 530 convenience stores
and gas stations in 12 states, has tapped CB Richard Ellis Inc.'s
global corporate services unit to exclusively manage a sale/leaseback
program..
Crossman to Handle Leasing for 10.4MSF Publix Portfolio
Jul 20, 2009
Third-party leasing and management firm Crossman & Co. has been
named the exclusive leasing representatives for all Publix-owned retail
properties in Florida, Georgia, Alabama, Tennessee and South Carolina.
Prudential Executives See More Pain but Some Improvements
Jul 16, 2009
With unemployment still rising, Prudential executives expect more pain
to come for the commercial real estate market, but they also see some
signs of better health, according to their assessment of the industry
during yesterday’s mid-year commercial real estate outlook.
Manhattan Office Market Decline Slows
Jul 15, 2009
Manhattan leasing activity increased in June and the monthly vacancy
rate held steady for the first time since February 2008, which together
with some otherindicators and more may show some steadying of
commercial real estate, particularly in the office market, according to
a midyear report released by Cushman & Wakefield.
Q2 Demand as Weak as Expected Across Sectors--Except M-F
Jul 13, 2009
The dismal economy continued its stranglehold on the commercial real
estate industry, as per CBRE Econometric Advisors' recently released
analysis, pushing up vacancies in the office, industrial and retail
property markets. But there was one surprise. Demand in the
multi-family sector, despite the ongoing job losses that are hindering
the formation of new households, was essentially unchanged from the
first quarter of the year.
Baltimore Office Market Primed to Bounce Back Quickly Upon Economic Turnaround
Jul 07, 2009
Not a single office market has been spared from the ravages of the
cruel demise of the economy, but Baltimore, unlike most other
metropolitan areas, is in a position to get back on its feet right on
the heels of the highly anticipated economic turnaround, according to a
Cushman & Wakefield Inc. second-quarter report.
In Supply-Constrained Vancouver Market, 204,000SF Office Trades in Sale Leaseback
Jul 07, 2009
In the midst of the sluggish investment market, where most real assets
that are selling are on the smaller end of the spectrum, a major office
property in Vancouver has been acquired by Kingswood Capital Corp. The
21-story, 204,000-square-foot Grosvenor Building, located in the city’s
Downtown, was sold by property investor and developer Grosvenor
Americas, which will continue to make its home at the tower under a
leaseback agreement.
Summers: Dallas/Ft. Worth is M-F's 'Golden Child'
Jul 06, 2009
"Anyone who follows the multi-family market knows that Dallas/Ft. Worth has been the golden child of the multi-family industry for a while," asserts Matt Summers, president of management at Kaplan Management Company Inc.
DC Office Market Sees Absorption for Third Straight Quarter
Jul 06, 2009
The Washington, D.C., metropolitan area experienced negative overall
net absorption for the third consecutive quarter, according to a report
by Cassidy & Pinkard Colliers, but there are some signs that the
market may be at or near a bottom.
Houston Mixed-Use Opens Amid Uncertain Economy
Jun 29, 2009
While Texas struggled later and possibly not as much as the rest of the country when the bottom fell out late last year, Houston’s office market continued to thrive until just recently with rising vacancies and more projects under construction. Recent delivery of projects like Citycentre’s mammoth 425,000 square feet of mixed use space right now might not be ideal timing, but developer Midway Cos. hopes to weather the difficult market.
Downtown Miami Condo Market Showing Signs of Life--Contrary to Popular Opinion
Jun 29, 2009
Rumors of the Downtown Miami condominium market's death have beengreatly exaggerated. The Miami Downtown Development Authority recentlycommissioned the Residential Closings & Occupancy Study, whichindicates that industry talk about the area's stock of new condos beingcovered in cobwebs--or predominantly empty--may not be totallyaccurate.
Office Tenants Now in the Driver's Seat
Jun 26, 2009
Even before the financial meltdown last fall, most U.S. office markets
were going noticeably soft. In particular, vacancies were rising as
businesses downsized, reorganized or otherwise felt skittish about
committing to any new use of office space. Now that the worst recession
in at least a generation is under way, what was once only a worrisome
trend for U.S. office landlords is full-blown reality.
While Industrial Sector Struggles Nationally, Fort Worth Complex Already Beats 2008 Leasing Figures
Jun 24, 2009
National numbers show the industrial market tanking, but the Alliance Global Logistics Hub in Fort Worth, Texas, has already leased 1.9 million square feet this year compared to a total of 1.1 million square feet at Alliance in all of 2008. While the industrial market nationwide took a turn for the worse in the first quarter of 2009, with vacancy rising rapidly and absorption and construction activity plummeting, tenants are taking advantage of the situation—as evidenced by the half-million-plus-square-foot lease renewals ATC Logistics & Electronics just inked at Fort Worth’s Alliance.
Net Lease Market Sluggish, But Not Comatose
Jun 23, 2009
The net lease marketplace is hardly what it used to be, with deal volume at only a fraction of what it was during the mid-2000s boom years. But net lease never did quite grind to a halt, and there’s some evidence that the market is climbing out of the trough it found itself in during the last quarter of 2008.
NBA Renewal Marks Big Win for Midtown Manhattan
Jun 22, 2009
Multiple landlords attempted to lure NBA Properties to other locations
in Manhattan and across the Hudson River but Olympic Tower Associates’ signed NBA Properties Inc. to a 10-year, 153,000-square-foot renewal at 645 Fifth Avenue.
TransUnion, RentBureau Affiliation Will Benefit M-F Owners, Renters
Jun 11, 2009
Facing increasing vacancy levels induced by
economic unrest, apartment owners are eager to attract tenants--responsible
tenants--in order to bolster their bottom line. To that end, owners using
TransUnion's rental screening platform have a new tool for evaluating tenants'
reliability now that the credit bureau has decided to incorporate RentBureau's
proprietary rental payment database as a new feature for vetting prospective
renters.
Boston-Area Biotech Firms Seek Cheaper Space in Suburbs
Apr 27, 2009
Drug maker Alkermes Inc. last week became the latest in what has become a growing line of biotech firms leaving Cambridge, Mass., in search of less expensive office and laboratory space in the suburbs. The company plans to relocate to a 100,000-square-foot facility in Waltham early next year, a move that Alkermes says will eventually save some $750,000 a year.
Economic Update - Bear Stearns' Bum Real Estate, Revealed
Apr 24, 2009
Bear Stearns Cos. was in the news again Thursday, in case anyone
remembers back far enough to recall the last time it was big news--a
time when the disappearance of that company into JPMorgan Chase seemed
unfortunate, but not necessarily a harbinger of vast financial problems
ahead. Which, in fact, it turned out to be.
Despite Economy, Leasing Continues Apace at AllianceTexas
Apr 22, 2009
With Texas' business climate not quite as dire as in other parts of the
country, Fort Worth’s AllianceTexas development hit almost record
levels of leasing in the first three months of 2009 with more than 1.2
million square feet.
Blanca’s New Firm Gets Off to Fast Start with 1450 Brickell Assignment
Apr 22, 2009
Miami commercial property veteran Tere Blanca’s new services firm looks to be coming out of the gate quickly, despite the industry’s current slump. Just weeks after she launched Blanca Commercial Real Estate, the company landed the exclusive leasing duties for 1450 Brickell, a Class A office tower currently under construction in Miami’s Brickell financial district.
Orlando Office Market Struggling to Stay Even
Oct 13, 2008
Mounting concerns surrounding the health of the economy, meshed with
sluggish employment growth, continue to drag down markets across the
country. Orlando’s office market--although somewhat buoyed by
employment growth experienced in the hospitality and tourism
sectors--is no exception.
Property Management
Transwestern Wins Nearly 500,000-SF Property Management Assignment
Aug 04, 2009
Transwestern has been awarded management of One Central Park East, a 485,720-square- foot office project Mesirow Financial Real Estate is constructing at 50 East Van Buren in Downtown Phoenix. Under construction and scheduled to open in the third quarter of 2009, the 26-story Class A property will also include 9,000 square feet of retail space and an executive fitness center. A recipient of the AIA Western Mountain Region Design Citation Award, it includes an advanced insulated window wall glass system featuring exterior horizontal and vertical shade fins to combat the harsh Phoenix sun.
Opus Property Services Reported for Sale
Aug 03, 2009
Opus Corp. is seeking to sell its property-management business, according to a report on bizjournals.com, the Web site of American City Business Journals. It quoted a company spokesperson as stating that selling off Opus Property Services would help the company renew its focus on its "core competency," along with its being a good time to sell because property management firms currently have an "appetite ... to grow their (business)." Opus' management portfolio totals about 30 million square feet of office, retail, industrial and corporate space.
CAS Launches Green Apartment Measurement Tool
Jul 24, 2009
CAS Financial Advisory Services, the asset management arm of CAS Partners, launched Green Capital Needs Assessment, designed to measure quantitatively the value of incorporating green improvements into multi-family properties. For discussion on another green tool, the Corporate Realty, Design & Management Institute's Model Green Lease, designed for use across commercial properties, log on to CPN Radio later today.
Summers: Dallas/Ft. Worth is M-F's 'Golden Child'
Jul 06, 2009
"Anyone who follows the multi-family market knows that Dallas/Ft. Worth has been the golden child of the multi-family industry for a while," asserts Matt Summers, president of management at Kaplan Management Company Inc.
Amid Troubled Hotel Sector, Companies Look to Boost Management Portfolios
Jun 05, 2009
Many hotel owners are looking at a troubling two years or so, as a large portion of their loans are coming due for refinancing in an environment of declining RevPar. In other words, many owners will be asked by lenders to contribute more equity into their loans, just when that money may be very hard to come by.
Grubb & Ellis to Manage 618,000-SF San Antonio Office Complex
Apr 15, 2009
Grubb & Ellis Co. has been awarded a 618,000-square-foot management assignment by Tesoro Corp., an independent refiner and marketer of petroleum products, in San Anonio, Texas. The assignment will be at Tesoro’s new company headquarters, which the company is expected to occupy in June.
With Management More Vital Than Ever, Panattoni Taps Colliers for 18 MSF Contract
Feb 04, 2009
With a struggling economy dragging down the commercial real estate
market, selecting the right property management team may be more
important than ever. And now Panattoni Development Co. has expressed a
major vote of confidence in Colliers International, tapping the firm to
provide management services to some 18 million square feet of office
and industrial property located across the country.
Corporate Real Estate
Economic Update - Corporate RE Plays New Role in Tough Times
Apr 28, 2009
It's a whole new world for corporate real estate owners, according to the 2009 State of the Industry Report by CoreNet Global, which was released Monday. The report distilled the views and opinions of more than 60 corporate real estate executives from around the world, along with information gleaned from various corporate real estate case studies.
In Troubled Times, Firms Turn to RE Service Providers for Guidance
Mar 06, 2009
With the United States and much of the global economy in a perilous
state, many corporations are looking to their real estate service
providers for advice on how to make the best use of their real estate
portfolios. To this end, telecommunications firm Nokia has chosen CB
Richard Ellis Inc. as its global strategic real estate advisor.
Technology
SCIwatch Program Boosts Energy Efficiency for Clients Like Santa Clara County
Jul 10, 2009
The commercial property sector has been increasingly concerned with
energy efficiency for some years now. With ever-dwindling and
nonrenewable resources being consumed at faster rates than ever, the
industry has been among the leaders in efforts to increase efficiency.
And the current economic downturn has only served to render efficiency
even more vital to property owners’ bottom lines. Aiming to serve the
growing demand, Scientific Conservation Inc. has just launched a
software program that it says will enable owners to save up to 25
percent on energy costs. And for clients such as Santa Clara County in
California, that savings is more important now than ever.
Online Auction Platform Aims to Improve Bidding
Jul 10, 2009
Taking advantage of a new platform to create more interest from buyers
in auction-sold properties, Sperry Van Ness/Guardian launched the
MarketMaker auction platform to sell REO, bank ordered and developer
close-out properties.
Green Building in a Changing Economic Environment
Jul 10, 2009
Currently, buildings contribute the largest single source of emissions
to our environment. Approximately 40 percent of all carbon emissions
come from buildings, and these are the places where you live, work and
play. At the American Institute of Architects, we are approaching
sustainability and green buildings with a solutions-based approach that
embraces technological change and incorporates the business case for
green buildings, which has become immeasurably stronger during the past
decade, as prices for green materials have decreased and knowledge of
green design has increased.
Core Platform Anchors Enhanced Capabilities
Jul 10, 2009
Imagine it’s 1990. You’ve moved into a sparkling new office. On the
surface, it’s perfect: spacious, modern furnishings, convenient
parking. But the dynamism of the commercial real estate industry soon
exposes its shortcomings.
The Truth Behind Internet Security
Jul 10, 2009
How effective are Internet security tools these days and what
new tools or processes should I be using to protect electronic access
to my business records and communications?
The 5 Hot Buttons of Videoconference Space Design
Jul 10, 2009
As the economic slowdown continues and non-critical business travel
budgets are reduced, videoconferencing is becoming an acceptable
alternative. But if the facilities aren’t designed appropriately, what
could have been a productive meeting ends up as a technological
nightmare. Although it seems easy just to set up a camera and monitor
display in a conference room, there are five key areas that should all
receive attention to create a successful videoconference room with a
high-quality experience for all participants.
Define Your Digital Rights
Jun 11, 2009
Ask yourself this one simplequestion: Can you afford to give out confidential information without theability to control it?
Data System Allows Colonial to Produce Reports with Ease, Accuracy
Jun 11, 2009
In today’s market, financial reporting and recordkeeping are more important than ever. But it can often be a laborious and time-consuming process. And for a firm the size of Colonial Properties Trust—which has ownership interests in more than 250 multi-family, office and retail properties nationwide—that task can be even tougher.
TransUnion, RentBureau Affiliation Will Benefit M-F Owners, Renters
Jun 11, 2009
Facing increasing vacancy levels induced by
economic unrest, apartment owners are eager to attract tenants--responsible
tenants--in order to bolster their bottom line. To that end, owners using
TransUnion's rental screening platform have a new tool for evaluating tenants'
reliability now that the credit bureau has decided to incorporate RentBureau's
proprietary rental payment database as a new feature for vetting prospective
renters.
Technology's Collaborative Power
Jun 11, 2009
Collaboration is a fundamental requirement of integration. Research from the Construction Industry Institute has shown that collaborative projects have fewer claims, shorter schedules and more job satisfaction. Anyone considering putting a team together should consider the benefits of integration and how it can further enhance a team’s performance and outcome when delivering their project.
Data Centers' New Age
Jun 11, 2009
With the new administration trying to tackle America’s dependency on energy abroad, data centers, as spearheaded by the Department of Energy, are once again becoming the focus of the industry in its effort to reduce energy consumption.
Using Technology to Think-and Act-Globally
Jun 11, 2009
One challenge that arises when a real estate company seeks new opportunities in the international arena is managing an ever-expanding domain as one coherent, unified enterprise. Industry leader Cushman & Wakefield offers a compelling example of the benefits of using an open-architecture platform to centralize widely dispersed operations. Open architecture offers the promise of virtually unlimited efficiencies for real estate companies whose operations cross national borders.
The Case of the Disappearing Web Site
Jun 11, 2009
As companies rely more and more on their Web sites, hosted email servers and other outsourced IT services, a new threat has slowly emerged: the disappearing Web site. Traditional factors usually involve money: The Web hosting bill wasn't paid or the designer wasn't paid or there's a dispute between the client and the designer. If you have questions maintaining your disaster recovery policies and procedures, find out what you can do.
Economic Stimulus & Data Center Construction
May 14, 2009
The American Recovery and Reinvestment Act of 2009, as it is technically titled, has allocated roughly $19 billion for the deployment of electronic medical records. What exactly does that mean?
Business First Aid
May 14, 2009
Having a data recovery and business continuity plan ready for
activation following a disruptive event—localized building fires and
floods as well as widespread disasters—can minimize down time and allow
companies to collect rent, execute leases and perform other essential
functions virtually uninterrupted.
Upgrades for Easier Contract Management
May 14, 2009
On April 30, the AIA released an updated version of AIA Contract
Documents® software, making it better and easier to use. Guided by
extensive input from hundreds of contractor, owner, architect and
attorney users of AIA Contract Documents, the updated software saves
time and money by offering easier project and document management and
document completion.
An Integrated Approach
May 14, 2009
Today's commercial real estate market presents an extraordinary challenge but also an excellent opportunity for firms large and small to increase market share. Using an integrated marketing approach to communications will boost your firm's visibility with buyers and sellers who will once again become active. And it doesn't have to cost a lot of money to be successful.
As Mortgage Pool Shrinks, Lender Turns to LoanMarq for Leg Up
May 14, 2009
With the mortgage industry still in a state of tumult, lenders and investors are on the lookout for new and innovative methods to increase profits and make every aspect of the mortgage process run as smoothly as possible. Such was the goal of Mortgage Solutions, a Knoxville, Tenn.-based lender, when the firm turned to Sthenia Solutions and its LoanMarq software program.
New CRE Website Combines 3D Mapping, Property Data for NYC, NJ
May 14, 2009
Taking real estate expertise and combining it with technology has given birth to REonomy.com, a real estate information Web site designed to serve a range of professionals, from investors to brokers, by providing integrated parcel data, MLS and comprehensive property research tools in one location.
Sustainable Path to Efficiency
Apr 09, 2009
Much more than a catchy slogan, "Going Green" can provide a path for property managers that allows them to shed wasteful inefficiencies and reduce costs. Among the possible procedures involved are paperless invoice processing and centralized, Web-based procurement, environmentally friendly real estate practices that are also setting new industry standards for efficiency and cost effectiveness.
Practicing Green Building in the Commercial Real Estate Industry
Going green is a growing real estate trend. Sustainable design is being implemented to optimize environmental safety and reduce wasteful consumption. CPN's real estate news reports uncover how these strategies are affecting the state of the commercial real estate industry.
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