Market Data

Regional Outlook

East

D.C.’s Big Deal

The next fast-food trend coming your way: conveyor-belt sushi. London-based Yo! Sushi opened its first U.S. franchise location in Washington, D.C.’s Union Station, with two more D.C. locations planned for this year. The company expects to have at least 10 outlets in the Mid-Atlantic corridor between Washington and Philadelphia and is considering Chicago, Miami, and Dallas as part of its initial U.S. push to open 12 U.S. locations by the end of 2013. Likely sites: high foot-traffic sites in urban locales, suburban lifestyle centers, and college towns, according to qsrmagazine.com.

West

Idaho Investment Improves

Commercial investment volume in the Boise market is nowhere near its 2007 high of $410 million, but it is headed toward a projected $118 million by year-end — the highest level since 2008, according to Thornton Oliver Keller Commercial Real Estate’s midyear report. Deal volume is up 20 percent from last year. Seasoned investors are buying, looking for quality assets in the $500,000 to $1.5 million range, with most activity occurring at the upper price points. The area has seen more 1031 deals in the first half of 2012 than in the past three years combined. Capitalization rates for well-positioned properties are in the 6 percent to 7 percent range, while generally cap rates average between 8 percent and 9 percent.

South

“YTD, 90% of our transactions have been leasing and 66% of those deals have been office. Retail accounted for 13% of our closings.”

— Coldwell Banker Commercial M.M. Parrish Realtors, Alachua County, Fla., 2Q12 Market Summary

East

Retail Improving

Store managers along the Eastern Seaboard report improving retail sales and customer traffic, according Levin Management’s annual midyear survey. Of the 1,100 retail tenants surveyed, 64.2 percent reported same or higher sales volume than last year, compared with 50.1 percent who reported same or higher sales last year. This year, 62.9 percent said customer traffic was the same or higher than last year, compared with 50.4 percent in the 2011 survey. In addition, 91.4 percent thought that sales would remain steady or improve during the second half of 2012. Levin operates 100 retail properties in Pennsylvania, New Jersey, New York, Virginia, North Carolina, and Florida, ranging from community and lifestyle centers to enclosed malls and mixed-use projects.

West

“During the second quarter, cranes and bulldozers were not active in San Diego County as there were no industrial projects under construction, a strong indication that developers are not ready to build unless there is a tenant commitment in place.”

— Cassidy Turley San Diego

Midwest

Indy Spec Office to Break Ground

Indianapolis’ first speculative office development since 2008 breaks ground in the Keystone Crossing submarket in third quarter, according to Summit Realty Group in Indianapolis. Developer Sourwine Real Estate Services will own, develop, and manage the 80,700-sf multitenant property, which is scheduled to deliver in 2Q2013. Overall office vacancy in the Indy market fell 1.2 percentage points to 21.1 percent in second quarter. However, the Keystone submarket vacancy rate fell to 17.8 percent, down from 22.5 percent a year ago.

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