Archive for February, 2011
More than 25 volunteers from NAI Global, NAI Las Vegas and NAI member firms around the world (including NAI Knoxville’s Tammy Sommers) volunteered to assist in building a home just outside of Las Vegas at 1325 Miller Avenue, off North Martin Luther King Boulevard and West Carey Avenue. An initiative spearheaded by NAI Cares, NAI Global’s charitable arm, the home build event included NAI Global executive leadership and brokers from as far away as Germany and Chile.
“NAI Cares is dedicated to helping people realize success over hardship, and we are thrilled for this opportunity to work with an organization that helps people fulfill their dreams,” said Jeffrey M. Finn, NAI Global President & CEO. “We are honored to work alongside the dedicated professionals from Habitat for Humanity in building this home and helping someone transform their lives.”
NAI Cares, as well as several sponsors, member firms and NAI Global, raised a $5,000 donation in support of Habitat for Humanity’s efforts to build a home for a family in the Las Vegas community. The team of NAI volunteers, taking time away from the organization’s annual convention, convened at the build site and spent time building sidewalks for entrance to the homes, repairing fencing, installing insulation and preparing homes for drywall. Guy Amato, President & CEO of Habitat for Humanity Las Vegas was on hand to meet the NAI volunteers.
Commercial Real Estate Markets Begin Long, Slow Recovery – NAI Global Issues 2011 Global Market Report
Vacancy, Rental Rates Show Signs of Stabilizing in 2010 as Demand Returns
NAI Global Issues 2011 Global Market Report; 25th Annual Volume Provides Review/Forecast for 217 Commercial Property Markets Worldwide
The commercial real estate industry struggled through the start of 2010, but by year’s end there were signs that conditions worldwide had stabilized and were beginning to improve, according to the 25th annual Global Market Report released today by NAI Global.
After a prolonged, challenging period marked by frozen credit, sidelined investors, stalled development, rising vacancy rates and declining rental rates and property values almost anywhere you turned, improvement, albeit modest, is expected in just about every market sector and geography in 2011.
Much of the activity in 2010 was driven by corporate space users taking advantage of a tenants’ market worldwide to lock in low effective rental rates and reduce their overall occupancy costs. Office rental rates in some markets have fallen more than 30% from their mid-2007 peak. This activity is expected to increase as economic growth returns, further unleashing significant pent-up demand.
“Although 2010 was another very challenging year for the industry, we began to see clear signs that the global economy and commercial real estate markets had stabilized and were beginning to improve with a noticeable pickup in transaction volume around the world,” said Jeffrey M. Finn, President & CEO of NAI Global. “Companies around the globe are taking advantage of the current market, extending or renegotiating leases, securing investment properties, disposing of underperforming assets and finalizing plans for growth in the next 24 months. We expect a much more active market for buyers, sellers and occupiers as conditions continue to improve.”
The investment market also showed signs of life in 2010 as credit markets thawed. The massive wave of foreclosures that was predicted heading into 2010 never materialized as financial institutions opted to extend or re-work troubled loans. However, the sidelines are growing crowded with REITs, private equity and institutional investors who have amassed a tremendous amount of capital and are actively looking for deals, said Finn. Commercial real estate investment should also get a boost from new investors drawn to real estate in pursuit of yields and further enticed by record low interest rates.
By George Livingston and Christie Alexander
According to current economic indicators–and most economists–U.S. business and industry will likely show measurable signs of improvement in 2011. That means the window is narrowing on the opportunity for industrial firms to recognize significantly improved revenue from their leased facilities.
That may seem counter-intuitive at first. But the current economic cycle is rife with opportunity for successful enterprises with positive credit history. Your landlord is loath to admit it, but the fact is, your
company–more specifically your leasehold obligation–is one of your landlord’s principal assets right now.
Nationwide, commercial properties–including the facilities you occupy now–have decreased in value as a result of the real estate decline and the accompanying recession. With regional and local market vagaries, all properties have suffered. As undercapitalized companies downsized or folded, vacancies spiked and rents from remaining tenants have not made up the difference.
NAI Global reports significant gains were made in 2010, as the company re-imagined and reinvigorated services to better serve corporate space users’ changing needs.
“NAI Global continued to innovate and differentiate in 2010, realizing new service offerings and sales channels to help our clients achieve success in today’s uncertain market conditions,” said Jeffrey M. Finn, NAI Global President & CEO. “We look forward to a stronger 2011, built on a re-imagined and reinvigorated global network.”
NAI Knoxville Property Management announces Shanda Chambers as the new Manager of the Water’s Edge Conference Center. Whether you are organizing a Business Meeting or planning a Family Event, she will help you make it a special occasion. Leave all the work to Shanda. Contact her at 777-0202.
Washington Ridge, a 248-unit apartment complex on Washington Pike, has sold to C. J. Lombardo Company of New Jersey. The buyer was represented in the transaction by Steve Goldman, CCIM and John Dempster, apartment specialists with NAI Knoxville. The undisclosed seller was represented by Larry Ochab of Pinnacle Realty Management Company of Maitland, FL. The new owners will rename the property Spring Meadow.
Goldman says the twenty-year-old apartments are close to the Knoxville Center Mall and are consideredvery nice class B apartments. The units are spacious and many even have fireplaces. The complex is on a well-landscaped, 19 acre property. Lombardo also owns and manages over 3,000 apartment units and in 2008 acquired the 186-unit Deane Hill Apartments adjacent to Knoxville’s West Town Mall.
This is the second significant multifamily property sold by the NAI Knoxville team recently, having represented the seller of the 100-unit McKenzie Acres Apartments in Oak Ridge which sold in November.
NAI Knoxville brokers Brian Tapp and Trey Miller, along with David Devaney, of NAI Charter, have confirmed that “bank owned” Belle Island is under contract. A local Knoxville developer has big plans for the pedestrian friendly development. Belle Island was originally designed to be a one-of-a-kind “entertainment village” in Pigeon Forge, TN combining traditional Southern charm and hospitality with unique shopping, dining and entertainment experiences. [read more]
Alcoa, Tennessee (February 2, 2011) – A class A office/showroom and distribution center has been sold. Brokers handling the sale announced today that the former showroom, corporate headquarters and distribution center for the Walker Supply Company off Middlesettlements Road sold on January 27, 2011 for $4,000,000. The buyer is Second Harvest Food Bank of East Tennessee who is moving their food service distribution center which serves 18 counties in East Tennessee. The buyer was represented by Maribel Koella CCIM, SIOR and Brian H. Tapp of NAI Knoxville and the seller by Mike Price and Jerry Holloway with Oliver Smith Realty.
“NAI Knoxville is honored to have had the opportunity to work with the fantastic staff and volunteers at Second Harvest Food Bank in the acquisition of their new facility.” Maribel Koella CCIM, SIOR, and Principal Broker of NAI Knoxville.
“This facility was completed in 2008 and is in excellent condition. The 77,540 square foot building has an ultra modern 50,000 square foot warehouse with 32’+ clear ceiling heights, nine dock doors and two large drive in doors which will make it quicker to ship and receive food. The 10,570 square foot retail/showroom is well suited for the agencies that come to Second Harvest to shop and the 9,650 square feet of class A office space is in move-in condition for the staff. This building will enable Second Harvest to efficiently store, sort, ship and receive food to help hungry people in these trying times.” Brian H. Tapp, Industrial Sales and Leasing, NAI Knoxville
This is the 25th industrial property either sold or leased year to date by NAI Knoxville.
Following sharp declines and painful deleveraging in the wake of financial and economic turmoil, commercial real estate (CRE) is showing signs that the deterioration of industry transactions and fundamentals has begun to plateau, and that early stages of recovery may be imminent. In this article, Commercial real estate outlook: Top ten issues in 2011, get a closer look at market trends and developments, with a focus on the outlook for recovery. [read more]