Commercial real estate firm NAI DESCO announced it will increase its inventory and agents by 50 percent with the acquisition of competitor Coldwell Banker Commercial’s St. Louis brokerage division.
NAI DESCO is a full-service brokerage firm offering a wide range of services to institutional and individual owners of real estate as well as tenants and buyers. The firm focuses on corporate real estate services and brokerage of industrial, medical, office, retail and investment properties.
‘Europe’s sovereign debt crises are changing daily, yet are making little progress toward long-term solutions. The only questions are when, how and who will be left holding the bag?’ asks NAI chief economist Dr. Peter Linneman. In his new white paper, Dr. Linneman discusses the potential effects the debt crisis in Europe will have on the commercial real estate industry. The following is an excerpt:
Why is it that drops in asset values associated with impaired debt undermine economic activity far more than larger drops in equity values do? For example, during the tech bubble and the subsequent crash, $5 trillion in economic value disappeared over 30 months on the U.S. stock markets. This dwarfs the decline in asset values associated with impaired debt during the financial crisis, which are perhaps $1-2 trillion. Yet the real economy quickly regained its balance even after trillions of dollars were wiped out on the stock market, while far smaller losses via impaired debt have constipated economies across the globe. No clearer example exists than Japan over the past 21 years. And now Europe is following suit.
Read the entire article here.
If you like what you read, stay tuned to the NAI DESCO website for information on Dr. Linneman’s next webinar.
After vacancy rates decreased to 7.9% at the end of 2010 compared to 10.6% at the end of 2009, industrial vacancy rates have once again risen to 8.8% at the end of Q3 2011 with negative net absorption. New construction starts have picked up again throughout 2011, with over 500,000 square feet delivered to the market in Q2 & Q3 2011, and 139,000 square feet currently under construction.
Rental rates in the industrial market have declined steadily throughout the year, settling at $4.06 per square foot at the end of Q3 2011 compared to an average of $4.20 per square foot at the end of Q3 2010.
Click here to read our full St. Louis metro industrial report, featuring detailed submarket information and major transactions from the quarter.
The metro St. Louis retail commercial real estate market is still undergoing a transition period at the end of Q3 2011 as the overall economy remains shaky. On the bright side, vacancy rates continue to decrease and are down to 7.9% across all retail sectors. However, restricted lending and a troubled economy continue to create a slight downward pressure on average asking rates across all sectors, which have dropped from $12.36 per square foot at the end of Q3 2011 from $12.51 per square foot at the end of 2010.
No new square footage was delivered to the market in in Q3 2011, however 323,292 square feet are currently under construction, It will remain to be seen how this additional space will affect the retail market moving into 2012.
Click here to read our full St. Louis metro retail report, featuring detailed submarket information and major transactions from the quarter.
NAI DESCO is pleased to announce that our 3rd Quarter 2011 Office Report is now available.
The overall office vacancy rate at the end of Q3 2011 was 12.4%, showing a 1% downturn over the vacancy rate as of a year ago. The Fenton and Manchester/270 submarkets maintain some of the lowest office vacancy rates in the metro St. Louis area, while the Earth City submarket reflects some of the highest vacancy rates.
Over the entire metro St. Louis market, asking rates at the end of Q3 2011 were $17.95 compared to $18.65 at the end of Q3 2010, suggesting the market may not improve for landlords for some time to come.
Click here to read our full St. Louis metro office report, featuring detailed submarket information and major transactions from the quarter.
Floyd Sweeney of NAI DESCO recently completed the lease of an 8,000 square foot industrial building at 2677 Metro Blvd in Maryland Heights, MO. The space was leased to DACCO/Detroit of Missouri, Inc. Sweeney represented the owner in this transaction.
John McDonald of NAI DESCO recently completed the sale of a 7,899 square foot industrial building at 6311 Bartmer Industrial in St. Louis, MO. The space was sold by PDIL, LLC. McDonald represented the purchaser, Brouster Construction.
Matt Hirsch and Barry Iken of NAI DESCO recently completed the lease of 1,446 square feet of office space at 3155 Sutton Avenue in Maplewood, MO. The space was leased to to CJC Transport LLC. Hirsch and Iken represented the landlord, Franco, Inc.
Matt Hirsch and Barry Iken of NAI DESCO recently completed the lease of 1,766 square feet of medical office space at 555 N. New Ballas Rd in St. Louis, MO. The space was leased to West County Spine & Sport Medicine LLC. Hirsch and Iken represented the landlord, Plaza Members III, LLC.
David Wittenauer of NAI DESCO recently completed the lease of 1,075 square feet of in-line retail space at 3012 S. State Route 159 in Glen Carbon, IL. The space was leased to Adam Wolfe who plans on opening a State Farm Insurance office. Wittenauer represented the owner, Missouri Real Estate & Insurance Agency, Inc.