Industry News

The News Funnel

Real Estate News, Personalized

02/21/2019

ON THE SCENE: Charter tries its hand leasing Walmart Plaza in CT

AGENTS Joseph Aquino, from JAACRES, has been retained to sell or lease a mixed use property located at 52 Jobs Lanes, Southampton. The two-story property features 1,850 s/f of ground floor retail space and a 1,000 s/f second floor apartment. The property is situated near luxury boutiques on a prominent Southampton shopping street. Neighboring retailers include Ralph Lauren, J McLaughlin, Chico’s, Club Monaco. Asking price is $3.95 million. ••• Charter Realty & Development has been retained to lease the 158,225 s/f Walmart Plaza. The plaza is located in Avon, CT along a highly trafficked Route 44 corridor. It is strategically located between Routes 10, 202, and 167, all of which are major interchanges for the Avon, Simsbury, Farmington, Canton, and West Hartford communities. Walmart Plaza is anchored by Big Y and Walmart and also features TD Bank, Five Guys and Supercuts. Big Y has recently undergone a significant renovation of its store in this plaza. ••• Ariel Property Advisors has been exclusively retained to sell 920 Pacific Street, a newly-constructed multifamily building in Prospect Heights. The company has also been hired to sell 1072 Dekalb Avenue, a mixed-use building in Bedford-Stuyvesant. • 920 Pacific Street is a multifamily walk-up spanning 7,064 s/f. The 5-story structure is comprised of eight residential apartments, storage space, bicycle parking and laundry service. Of the units, six are leased and are in the first year of a 35-year 421-a tax abatement benefit. Ownership is requesting proposals. Jonathan Berman, Daniel Tropp and Sean R. Kelly are representing the seller on an exclusive basis. • 1072 Dekalb Avenue is a 3-story mixed-use property, which consists of one store and two apartments, in Bedford-Stuyvesant. The asset, which has a total building size of 3,632 s/f, is zoned R6B. The residential units, both two-bedroom, have been renovated, with tenants paying for their own heat. In addition, the mechanical systems and roof are in mint condition. The asking price for the property is $1.5 million. Jonathan Berman, Daniel Tropp and Sean O’Brien are representing the seller. SALES Time Equities Inc. (TEI) has acquired a 163,000 s/f, four-story, Class-A office building located at 23000 Millcreek Boulevard in Highland Hills, Cleveland, for $7.55 million. The firm purchased the property from PNC Bank, who also occupied the building and will deliver it vacant. Jonathan Dulberg, Associate Director of Acquisitions for Time Equities led the acquisition of the asset. A CBRE team of Robert Leibold, Steve T. Ross and Douglas S. Leary represented Time Equities in the transaction; CRESCO Real Estate represented PNC Bank. 23000 Millcreek Boulevard, constructed in 1997, is located within one of the most in-demand office destinations in Northeast Ohio; this is the first time it will be available for a wide-variety of users. The building features floorplates over 45,000 s/f and open-plan layouts with numerous conference rooms. ••• Tryko Partners has expanded into the southern Maryland skilled nursing community with the acquisition of a 160-bed facility in Rockville. Marquis Health Services, the firm’s healthcare affiliate, has assumed operations of Collingswood Rehabilitation & Healthcare Center with plans to launch a $4.5 million renovation and programming expansion. Located at 299 Hurley Avenue, Collingswood is one of only two skilled nursing facilities in the area to provide onsite hemodialysis. It is situated on 4.8 acres in Montgomery County, approximately 18 miles northwest of Washington, D.C. Uri Kahanow, director of acquisitions, spearheaded the purchase with the firm’s Chris Welsh. M&T Bank financed the Collingswood acquisition. ••• NAI Queens announced the sale of a warehouse property in Woodside, Queens. Brian Sarath, senior director, represented the seller, Nancy Siegel. The 8,000 s/f warehouse building, located at 34-09/11 56th Street, was purchased by Susan Wu for $3,600,000. ••• Admiral Real Estate Services Corp. completed the sale of a retail building located at 14 South Greeley Avenue in Chappaqua. The building was delivered vacant. The property adjoins the free municipal parking lot and is a five-minute walk to the Chappaqua Metro North train station. Previously occupied by Hall of Scoops, the one-story building is proximate to Starbucks, Modern BlowDry Bar, emmary Day Spa, Petticoat Lane, Family Britches, and Chappaqua Village Market. Joan Simon of Admiral Real Estate represented both the seller and the buyer. ••• Avison Young brokered the purchase of a new home in Stamford for the Elayne and James Schoke Jewish Family Service of Fairfield County. Christopher Grundy and James Searl represented the non-profit organization in the purchase of an 7,500 s/f office condominium at 196 Greyrock Place in Stamford. The purchase price of was $925,000. Cushman & Wakefield’s Trip Hoffman and Brian Scruton, served as the agency broker. The Jewish Family Service of Fairfield County will be relocating from 733 Summer Street in Stamford, which will be demolished and rebuilt as residential apartments. ••• Bestreich Realty Group announced the following sales: • 307 Troutman Street in Bushwick in Brooklyn for $2,000,000. This property features eight apartments and is built 25 by 65 ft, offering approximately 6,500 s/f. Brian Davila, Steve Reynolds, Derek Bestreich, and Tom Reynolds represented the seller and the purchaser, a private investor. • 632 East 96th Street, a 5,560 s/f multifamily unit in East Flatbush section of Brooklyn for $1,025,000. The seller was 632 East 96 CO LLC and the buyer was 632 East 96 Realty LLC. Derek Bestreich, Steve Reynolds, Tom Reynolds and Brian Underkofler represented both sides in the transaction. • 1118 Lenox Road in East Flatbush section of Brooklyn for $1,475,000. The building is built 30 by 90 ft, offering approximately 8,100 s/f. It sits on a 30 by 100 ft lot. The seller was 1118 Lenox CO LLC and the buyer was 1118 Lenox Realty LLC. Brian Underkofler, Steve Reynolds, Derek Bestreich, and Tom Reynolds represented both sides of the transaction. ••• NAI James E. Hanson negotiated the sale of a 3,469 s/f mixed-use office/retail building at 555 Bloomfield Avenue in Montclair, NJ. Michael Walters and Fernando Garip represented the seller in the transaction. The property is a two-story mixed-use retail and office building. A T-Mobile franchisee currently leases the entire first floor. The two upper floors are approved for two residential units each. The buyer leveraged a 1031 exchange to purchase the asset as a long-term investment opportunity. ••• Helmsley Spear brokered the sale of the TD Ameritrade building in Scarsdale, New York. Located at 880 Central Park Avenue, the building is a 2-story structure comprising 5,000 s/f with TD Ameritrade bank as the sole tenant under a 12-year lease. The transaction closed for a sale price of $10.3 million. The purchaser was Garden Street Apartments LLC. Kent M. Swig made the announcement. Andrew Nemeroff, president of Imperial Capital Company, represented the seller in this transaction. ••• Marcus & Millichap announced the following sales: • A 37,800 s/f shopping strip located at 147-151 Pierce Street in Somerset, NJ, sold for $12,200,000. Michael Lombardi and Marc Karlin of Marcus & Millichap’s New Jersey office represented the seller, a private investor. The property is a newly-developed, multi-tenant property, consisting of three buildings, including a stand-alone Investors Bank pad site. • An 8,989 s/f retail strip center along High Ridge Road in Stamford, CT, sold for $5,527,000. Mark Krantz and Derrick Dougherty from the Philadelphia office, represented the seller, HRR Investments LLC, based in Huntington, New York. The buyer was a private investor based out of White Plains who was secured and represented by the pair as well. The strip center is located at 1003-1007 High Ridge Road and is 100 percent occupied by a roster that includes Subway, Vitamin Shoppe, and High Ridge Printing & Copy Center. ••• Admiral Capital Group announced that its core-plus investment platform (A2R) has acquired two Class A office properties in Plano, Texas, and Frisco, Texas. Andy Stone, managing partner of A2R, made the announcement. Duke Bridges III comprises 161,131 s/f of Class A office space in a three-story building in Frisco. DB3 was built in 2007 and is 94 percent leased to a diverse set of tenants in the technology, government and business services industries. Parkwood Place comprises 98,750 s/f of Class A office space in a three-story building in Plano. It has a tenant lounge and a conference room. Built in 2005 it is 76 percent leased to 20 different tenants. Stream Realty Partners will serve as the leasing and property management team for Parkwood and DB3. ••• Holliday Fenoglio Fowler announced the $12.9 million sale and the $10.5 million financing of Clinton Plaza, a grocery-anchored shopping center totaling 100,360 s/f in the New Haven-area community of Clinton, Connecticut. The HFF team marketed the property on behalf of the seller, JMH Associates LLC, and procured the buyer, Jerome Properties 215, LLC. Additionally, HFF secured the 10-year, floating-rate acquisition loan through a local bank. Clinton Crossing is located at 215 Main Street in the affluent, coastal Connecticut community of Clinton. The 92-percent-leased center is anchored by Stop & Shop supermarket and T.J. Maxx and includes a Dunkin’ Donuts outparcel. The HFF investment advisory team representing the seller included senior managing director Jim Koury. HFF’s debt placement team representing the buyer consisted of senior director Porter Terry. ••• Ariel Property Advisors has facilitated the sale of three development sites in Crown Heights, Ocean Hill, and Bedford-Stuyvesant. The properties sold for a collective $7.175 million. • 1321 Union Street is ab eight-unit building, which needs a gut renovation. Located between Nostrand Avenue and New York Avenue, the 40 by 63 ft. four-story building spans about 10,200 s/f. The Nostrand Avenue subway station is situated nearby. The property sold for $4.5 million. Jonathan Berman and Michael A. Tortorici represented the seller and procured the buyer. • 2380 Dean Street consists of a two-family home that sits on a 44 by 107.17 ft. lot. Delivered vacant, its R6 zoning allows for a FAR of 3.0. The lot is near numerous transportation options and amenities. The asset sold for $1.7 million. Jonathan Berman and Daniel Tropp exclusively represented the seller and secured the purchaser. • 467 Tompkins Avenue in Bedford-Stuyvesant is a shovel-ready development with fully-approved plans for a four-unit residential project on the east side of Tompkins Avenue. The 20.08 by 100 ft. vacant lot, which sits between Macdonough and Macon Street, is zoned R6A/C2-4, providing 6,024 buildable square feet as-of-right for residential or mixed-use development. The property sold for $975,000. Jonathan Berman, Andre Sigourney and Daniel Tropp represented the seller and procured the buyer. ••• Northeast Private Client Group has announced the sale of 9 Store Avenue, Waterbury, Conn, Brad Balletto, Rich Edwards and Jeff Wright handled both sides of the transaction. The 24-unit multifamily property traded for $1,150,000 to a private Connecticut-based investor. This equates to a price of $47,916 per unit and a capitalization rate of 7.6 percent. The seller was a local private investor. The post ON THE SCENE: Charter tries its hand leasing Walmart Plaza in CT appeared first on Real Estate Weekly. ON THE SCENE: Charter tries its hand leasing Walmart Plaza in CT

02/21/2019

ON THE SCENE: Charter tries its hand leasing Walmart Plaza in CT

AGENTS Joseph Aquino, from JAACRES, has been retained to sell or lease a mixed use property located at 52 Jobs Lanes, Southampton. The two-story property features 1,850 s/f of ground floor retail space and a 1,000 s/f second floor apartment. The property is situated near luxury boutiques on a prominent Southampton shopping street. Neighboring retailers include Ralph Lauren, J McLaughlin, Chico’s, Club Monaco. Asking price is $3.95 million. ••• Charter Realty & Development has been retained to lease the 158,225 s/f Walmart Plaza. The plaza is located in Avon, CT along a highly trafficked Route 44 corridor. It is strategically located between Routes 10, 202, and 167, all of which are major interchanges for the Avon, Simsbury, Farmington, Canton, and West Hartford communities. Walmart Plaza is anchored by Big Y and Walmart and also features TD Bank, Five Guys and Supercuts. Big Y has recently undergone a significant renovation of its store in this plaza. ••• Ariel Property Advisors has been exclusively retained to sell 920 Pacific Street, a newly-constructed multifamily building in Prospect Heights. The company has also been hired to sell 1072 Dekalb Avenue, a mixed-use building in Bedford-Stuyvesant. • 920 Pacific Street is a multifamily walk-up spanning 7,064 s/f. The 5-story structure is comprised of eight residential apartments, storage space, bicycle parking and laundry service. Of the units, six are leased and are in the first year of a 35-year 421-a tax abatement benefit. Ownership is requesting proposals. Jonathan Berman, Daniel Tropp and Sean R. Kelly are representing the seller on an exclusive basis. • 1072 Dekalb Avenue is a 3-story mixed-use property, which consists of one store and two apartments, in Bedford-Stuyvesant. The asset, which has a total building size of 3,632 s/f, is zoned R6B. The residential units, both two-bedroom, have been renovated, with tenants paying for their own heat. In addition, the mechanical systems and roof are in mint condition. The asking price for the property is $1.5 million. Jonathan Berman, Daniel Tropp and Sean O’Brien are representing the seller. SALES Time Equities Inc. (TEI) has acquired a 163,000 s/f, four-story, Class-A office building located at 23000 Millcreek Boulevard in Highland Hills, Cleveland, for $7.55 million. The firm purchased the property from PNC Bank, who also occupied the building and will deliver it vacant. Jonathan Dulberg, Associate Director of Acquisitions for Time Equities led the acquisition of the asset. A CBRE team of Robert Leibold, Steve T. Ross and Douglas S. Leary represented Time Equities in the transaction; CRESCO Real Estate represented PNC Bank. 23000 Millcreek Boulevard, constructed in 1997, is located within one of the most in-demand office destinations in Northeast Ohio; this is the first time it will be available for a wide-variety of users. The building features floorplates over 45,000 s/f and open-plan layouts with numerous conference rooms. ••• Tryko Partners has expanded into the southern Maryland skilled nursing community with the acquisition of a 160-bed facility in Rockville. Marquis Health Services, the firm’s healthcare affiliate, has assumed operations of Collingswood Rehabilitation & Healthcare Center with plans to launch a $4.5 million renovation and programming expansion. Located at 299 Hurley Avenue, Collingswood is one of only two skilled nursing facilities in the area to provide onsite hemodialysis. It is situated on 4.8 acres in Montgomery County, approximately 18 miles northwest of Washington, D.C. Uri Kahanow, director of acquisitions, spearheaded the purchase with the firm’s Chris Welsh. M&T Bank financed the Collingswood acquisition. ••• NAI Queens announced the sale of a warehouse property in Woodside, Queens. Brian Sarath, senior director, represented the seller, Nancy Siegel. The 8,000 s/f warehouse building, located at 34-09/11 56th Street, was purchased by Susan Wu for $3,600,000. ••• Admiral Real Estate Services Corp. completed the sale of a retail building located at 14 South Greeley Avenue in Chappaqua. The building was delivered vacant. The property adjoins the free municipal parking lot and is a five-minute walk to the Chappaqua Metro North train station. Previously occupied by Hall of Scoops, the one-story building is proximate to Starbucks, Modern BlowDry Bar, emmary Day Spa, Petticoat Lane, Family Britches, and Chappaqua Village Market. Joan Simon of Admiral Real Estate represented both the seller and the buyer. ••• Avison Young brokered the purchase of a new home in Stamford for the Elayne and James Schoke Jewish Family Service of Fairfield County. Christopher Grundy and James Searl represented the non-profit organization in the purchase of an 7,500 s/f office condominium at 196 Greyrock Place in Stamford. The purchase price of was $925,000. Cushman & Wakefield’s Trip Hoffman and Brian Scruton, served as the agency broker. The Jewish Family Service of Fairfield County will be relocating from 733 Summer Street in Stamford, which will be demolished and rebuilt as residential apartments. ••• Bestreich Realty Group announced the following sales: • 307 Troutman Street in Bushwick in Brooklyn for $2,000,000. This property features eight apartments and is built 25 by 65 ft, offering approximately 6,500 s/f. Brian Davila, Steve Reynolds, Derek Bestreich, and Tom Reynolds represented the seller and the purchaser, a private investor. • 632 East 96th Street, a 5,560 s/f multifamily unit in East Flatbush section of Brooklyn for $1,025,000. The seller was 632 East 96 CO LLC and the buyer was 632 East 96 Realty LLC. Derek Bestreich, Steve Reynolds, Tom Reynolds and Brian Underkofler represented both sides in the transaction. • 1118 Lenox Road in East Flatbush section of Brooklyn for $1,475,000. The building is built 30 by 90 ft, offering approximately 8,100 s/f. It sits on a 30 by 100 ft lot. The seller was 1118 Lenox CO LLC and the buyer was 1118 Lenox Realty LLC. Brian Underkofler, Steve Reynolds, Derek Bestreich, and Tom Reynolds represented both sides of the transaction. ••• NAI James E. Hanson negotiated the sale of a 3,469 s/f mixed-use office/retail building at 555 Bloomfield Avenue in Montclair, NJ. Michael Walters and Fernando Garip represented the seller in the transaction. The property is a two-story mixed-use retail and office building. A T-Mobile franchisee currently leases the entire first floor. The two upper floors are approved for two residential units each. The buyer leveraged a 1031 exchange to purchase the asset as a long-term investment opportunity. ••• Helmsley Spear brokered the sale of the TD Ameritrade building in Scarsdale, New York. Located at 880 Central Park Avenue, the building is a 2-story structure comprising 5,000 s/f with TD Ameritrade bank as the sole tenant under a 12-year lease. The transaction closed for a sale price of $10.3 million. The purchaser was Garden Street Apartments LLC. Kent M. Swig made the announcement. Andrew Nemeroff, president of Imperial Capital Company, represented the seller in this transaction. ••• Marcus & Millichap announced the following sales: • A 37,800 s/f shopping strip located at 147-151 Pierce Street in Somerset, NJ, sold for $12,200,000. Michael Lombardi and Marc Karlin of Marcus & Millichap’s New Jersey office represented the seller, a private investor. The property is a newly-developed, multi-tenant property, consisting of three buildings, including a stand-alone Investors Bank pad site. • An 8,989 s/f retail strip center along High Ridge Road in Stamford, CT, sold for $5,527,000. Mark Krantz and Derrick Dougherty from the Philadelphia office, represented the seller, HRR Investments LLC, based in Huntington, New York. The buyer was a private investor based out of White Plains who was secured and represented by the pair as well. The strip center is located at 1003-1007 High Ridge Road and is 100 percent occupied by a roster that includes Subway, Vitamin Shoppe, and High Ridge Printing & Copy Center. ••• Admiral Capital Group announced that its core-plus investment platform (A2R) has acquired two Class A office properties in Plano, Texas, and Frisco, Texas. Andy Stone, managing partner of A2R, made the announcement. Duke Bridges III comprises 161,131 s/f of Class A office space in a three-story building in Frisco. DB3 was built in 2007 and is 94 percent leased to a diverse set of tenants in the technology, government and business services industries. Parkwood Place comprises 98,750 s/f of Class A office space in a three-story building in Plano. It has a tenant lounge and a conference room. Built in 2005 it is 76 percent leased to 20 different tenants. Stream Realty Partners will serve as the leasing and property management team for Parkwood and DB3. ••• Holliday Fenoglio Fowler announced the $12.9 million sale and the $10.5 million financing of Clinton Plaza, a grocery-anchored shopping center totaling 100,360 s/f in the New Haven-area community of Clinton, Connecticut. The HFF team marketed the property on behalf of the seller, JMH Associates LLC, and procured the buyer, Jerome Properties 215, LLC. Additionally, HFF secured the 10-year, floating-rate acquisition loan through a local bank. Clinton Crossing is located at 215 Main Street in the affluent, coastal Connecticut community of Clinton. The 92-percent-leased center is anchored by Stop & Shop supermarket and T.J. Maxx and includes a Dunkin’ Donuts outparcel. The HFF investment advisory team representing the seller included senior managing director Jim Koury. HFF’s debt placement team representing the buyer consisted of senior director Porter Terry. ••• Ariel Property Advisors has facilitated the sale of three development sites in Crown Heights, Ocean Hill, and Bedford-Stuyvesant. The properties sold for a collective $7.175 million. • 1321 Union Street is ab eight-unit building, which needs a gut renovation. Located between Nostrand Avenue and New York Avenue, the 40 by 63 ft. four-story building spans about 10,200 s/f. The Nostrand Avenue subway station is situated nearby. The property sold for $4.5 million. Jonathan Berman and Michael A. Tortorici represented the seller and procured the buyer. • 2380 Dean Street consists of a two-family home that sits on a 44 by 107.17 ft. lot. Delivered vacant, its R6 zoning allows for a FAR of 3.0. The lot is near numerous transportation options and amenities. The asset sold for $1.7 million. Jonathan Berman and Daniel Tropp exclusively represented the seller and secured the purchaser. • 467 Tompkins Avenue in Bedford-Stuyvesant is a shovel-ready development with fully-approved plans for a four-unit residential project on the east side of Tompkins Avenue. The 20.08 by 100 ft. vacant lot, which sits between Macdonough and Macon Street, is zoned R6A/C2-4, providing 6,024 buildable square feet as-of-right for residential or mixed-use development. The property sold for $975,000. Jonathan Berman, Andre Sigourney and Daniel Tropp represented the seller and procured the buyer. ••• Northeast Private Client Group has announced the sale of 9 Store Avenue, Waterbury, Conn, Brad Balletto, Rich Edwards and Jeff Wright handled both sides of the transaction. The 24-unit multifamily property traded for $1,150,000 to a private Connecticut-based investor. This equates to a price of $47,916 per unit and a capitalization rate of 7.6 percent. The seller was a local private investor. The post ON THE SCENE: Charter tries its hand leasing Walmart Plaza in CT appeared first on Real Estate Weekly. ON THE SCENE: Charter tries its hand leasing Walmart Plaza in CT

02/21/2019

CBRE’s Flexible Space Unit Strikes First Landlord Deal

Three months after it first announced it was forming a flexible space subsidiary called Hana, CBRE has struck a deal with its first landlord. The first Hana unit will be at PwC Tower at Park District in Dallas, Texas. It is a new development by MetLife Investment Management and Trammell Crow Co. The unit, called Hana PwC Tower at Park District, is expected to open in mid-2019. PwC Tower at Park District is more than 500,000 square feet of office space and amenities. Part of a two-tower mixed-use development, Park District has more than 900,000 square feet of office space, restaurants and luxury residences. Park District is close to the heart of Downtown Dallas, the Arts District, Uptown and Klyde Warren Park. The project is indicative of future announcements for Hana, Andrew Kupiec, CEO of Hana, tells GlobeSt.com. In general, he says, "We are looking for tremendous Class A office space in larger buildings that offer great amenities." Kupiec adds that Hana identified a lot of demand for its offerings in the Dallas market and that there will be announcements in other markets as well. The Hana subsidiary's core offering is Hana Team, which provides the private office suites that among other things give the tenants control over branding. Hana will design, build and operate the facilities and services, and will participate in their financial success. Each Hana facility will feature two offerings: Hana Meet and Hana Share. Hana Meet provides conference room and event space that can be rented on an hourly, daily or weekly basis. Hana Share provides traditional co-working space in which users share services, amenities and technology. For landlords the financials of the program vary depending on what option they choose. There are a number of units and options that Hana can discuss with landlords, Kupiec explains, ranging from models in which Hana co-invests by putting in capital and sharing the costs while also splitting the profits to management agreements. Others structures may look like leases in which Hana retains a percentage share; Hana is also willing to do full leases on its balance sheet. "There is no one-size-fits all for our the landlords, which are large institutional owners," he says. The occupiers also will be large companies as Hana has crafted its offerings to appeal to this constituent. Indeed this is how Hana is differentiating itself in the rapidly-growing co-working/flexible space market. Most co-working companies started out by servicing small companies and freelancers, Kupiec says. Then they pivoted over time to target the larger companies. Hana, by contrast, has started out focusing on large and high-growth companies. It is also has the advantage of being able to focus on CBRE's existing relationships, Kupiece says. Leaders of Fannie Mae and Freddie Mac talk about the multifamily landscape, data standardization, affordability issues, and demographics last week at the MBA CREF conference. Tarek El Gammal will focus on multifamily investment sales for clients throughout the Southeast. Office owners are entering the co-working market, providing flexible workspace options to prospective tenants-and they are giving operators stiff competition. Can Artificial Intelligence Really Predict When a Tenant is About to Leave? CBRE’s Flexible Space Unit Strikes First Landlord Deal

02/21/2019

Industrial Market: Still Going Strong

Transwestern's fourth quarter report on the national industrial market shows that the segment is not slowing down anytime soon, with rents commanding higher figures than ever. Even though almost 1 billion square feet of new industrial inventory was delivered since 2015, 2018 ended with a 4.7 percent vacancy rate, less than half of what the post-recession high was in 2010, when the figure reached 9.5 percent. Furthermore, rents have been on an ascending trajectory for six years, ending the fourth quarter at $6.29 per square foot. According to the report, the increased demand is driven by factors such as high port volumes, job growth in construction, manufacturing and retail trade, and an increase in e-commerce sales. "The industrial sector continues to hit on all cylinders," Matt Dolly, Transwestern's director of research in New Jersey, said in a prepared statement. "In the fourth quarter, we saw job growth in construction, manufacturing and retail trade, all of which support the industrial market. E-commerce sales rose nearly 20 percent year-over-year during the holidays. And still, even with a massive volume of new deliveries, demand continues to outpace supply." In the U. S., noteworthy trends impacting the market include job growth in several sectors which support the industrial market, such as construction, manufacturing and retail trade; e-commerce sales during the holiday season, which saw a 20 percent increase year-over-year; and container volumes at ports accelerated during the fourth quarter, ahead of potential increase on tariffs. Transwestern tracks 47 industrial markets and of those, more than 90 percent saw year-over-year rent growth last quarter, and only four markets didn't post net absorption for the year. Looking ahead, Transwestern believes the leasing pace could slow this year because of political uncertainty, a decrease in retail sales, plus a smaller percentage of large deals simply due to a lack of space. A recent Kingsley Associates survey showed that overall tenant satisfaction in the industrial sector is relatively volatile compared to the office sector. In fact, over the past five years, overall satisfaction with the tenant experience has ranged from a low of 79.9 percent in the second quarter of 2014 to a peak of 86.9 percent in the third quarter of 2016. Industrial Market: Still Going Strong

02/21/2019

Triad experiences lower office vacancy rates, high asking rates in 4th quarter 2018

The Triad office market experienced higher asking prices with lower vacancy rates in the fourth quarter of 2018, according to figures released by the CBRE (NYSE: CBRE) Triad Marketview report. The fourth quarter statistics showed an overall vacancy rate in the Triad of 10.7 percent, a lease rate of $16.77 per square foot and net absorption of 88,466 square feet. Plus 150,000 square feet of office space was under construction. The Greensboro central business district, which has 2.8 million square feet of rentable area, was particularly strong with a region-leading average asking rate of $19.91 per square foot with 5.3 percent vacancy. Plus, the office building next to First National Bank Field is under construction. The Winston-Salem central business district, the largest Triad office submarket, has 4.9 million square feet of rentable area, and an average asking rate of $17.78 with 12.4 percent occupancy. High Point, with 1.6 million square feet of rentable area, had a vacancy rate of 9.9 percent with an average asking price of $17.35 per square foot. The Northeast Guilford submarket had a strong quarter with 32,121 square feet of net absorption, a 7.8-percent vacancy rate, and an average asking price of $19.48. Southeast Guilford, where the average asking price was $15.07 per square foot, had a 64.2-percent vacancy rate despite net absorption of 21,594 square feet in the quarter. The top lease transaction of the fourth quarter was General Dynamics Mission Systems' lease of 129,085 square feet at 4747 McConnell Center Drive in Greensboro. VF Jeanswear (Kontoor) leased 43,240 square feet at Revolution Mill in Greensboro after its spinoff from VF Corp. Guilford County had an overall vacancy rate of 12.1 percent, and an average asking price of $17.37 per square foot for the quarter. Forsyth County had an overall vacancy rate of 8.7 percent, and an average asking price of $15.36. Women-to-women MENTORING! Powerful, impactful event that you will not want to miss! Check out our 2019 Mentors! Triad experiences lower office vacancy rates, high asking rates in 4th quarter 2018

Jones Lang LaSalle CBRE