Seattle 4Q08 Industrial Highlights
4Q08 (%) Vacancy rate
Source: Colliers International
Miami Development Showcases Asian Architecture
The 22-story glass Mei boutique condominium in Miami Beach, Fla., features 134 residences on 175 feet of beachfront. The Asian-inspired property includes one-, two-, and three-bedroom residences ranging from $500,000 to $2 million.
U.S. Office Stock, 4Q08
Current stock (sf)
Source: Jones Lang LaSalle
Markets to Watch
Chicago — With an inventory of more than 1.1 billion sf, the industrial market completed 4Q08 with a 10.2 percent availability rate, according to CB Richard Ellis. Leasing activity in 4Q08 remained stable, posting more than 8.8 million sf of activity and ending the year at 41.1 million sf.
Austin, Texas — Despite 128,382 sf of negative direct absorption in the first half of 2008, the office market absorbed a total of 497,091 sf in 3Q08 and 4Q08 combined, according to Oxford Commercial. Net direct space absorbed during 2008 totaled 368,709 sf, slightly lower than 2007’s 382,631 sf absorbed.
Houston — The multifamily market posted a somewhat positive outlook, according to Marcus & Millichap’s 2009 National Apartment Report. Apartment stock is expected to expand by 1.5 percent as 9,100 new units are delivered this year. The new supply is expected to push vacancy rates up 110 basis points to 11.4 percent.
Boston — With more than 1 million sf of positive net absorption at year-end 2008, Boston’s retail market remains stable, according to NAI Global. Pricing is strong and vacancy mostly is unchanged for the CBD’s retail properties while the submarkets are experiencing lower rental rates and increased vacancy. Despite strong fundamentals, not much growth is expected by year-end.
New York — Multifamily market fundamentals will continue to soften this year because of Wall Street’s meltdown, says Marcus & Millichap. Vacancy is expected to rise 130 basis points to 4.7 percent by year-end. However, occupancy should stay relatively steady in popular neighborhoods such as the Upper East Side, Greenwich Village, downtown Brooklyn, and Park Slope.
Economy Chain Adds Sustainable Features
The Northlake, Texas, Motel 6, which broke ground in December 2008, is the hospitality corporation’s first project to include green features. The plans include laminate flooring made from 80 percent recycled material and a system of thermal solar panels for water heating. The property also will feature fluorescent lighting and battery recycling, technologically advanced heating and cooling systems, and water conservation efforts. The Northlake Motel 6 is slated to open by year-end.
Philadelphia Skyscraper Will Rise
In December 2008, Philadelphia’s city council approved the rezoning of a city lot for the American Commerce Center, a 2.2 million-sf, 1,510-foot skyscraper that will include a mix of office, retail, hotel, and public spaces, reports The Philadelphia Business Journal. The developer, Hill International Real Estate Partners, is finalizing the design and is slated to finish construction in 2012.
Cleveland 4Q08 Office Absorption
Current stock (sf)
Year-end direct net absorption (sf)
Source: Jones Lang LaSalle
Indiana Retail Remains Upbeat
Based on discount retailers’ increased activity in population growth, and consumer spending, Indianapolis’ retail market remained active throughout 2008, according to Colliers Turley Martin Tucker. Retail construction also continued with five CVS Pharmacies, two Aldi Food Stores, and several fitness centers around Indianapolis and its surrounding submarkets. But, for the remainder of 2009, sales and leasing activity is expected to fall below 2007 and 2008 levels. However, prime locations throughout the city are still of great interest to retailers and will continue to hold value over secondary locations.
Washington, D.C., Office Stats, 4Q08
Year-end net absorption (sf)
Source: CB Richard Ellis
Orlando, Fla., Multifamily Transactions
La Palazza at MetroWest
Cottages at Hunter’s Creek
Colonial Grand at Hunter’s Creek
Place at Millenia
Source: Cushman & Wakefield
New Jersey Complex Gets Makeover
In February, Baltimore-based Hirsch-feld Properties LLC held a groundbreaking ceremony for a 6,200-sf clubhouse, the first phase in the multimillion-dollar renovation of the two-building, 544-unit former Landmark apartment complex in Cherry Hill, N.J. The new clubhouse will feature leasing and business offices, a fitness center, an instructional kitchen, a pool, a media room, and a computer room. Other renovations to the 18-story buildings include new elevators, lobbies, and corridors; a new building system including energy-efficient boilers and heating, ventilating, and air-conditioning units; reconstructed balconies; renovated kitchens and bathrooms; and in-unit washers
Phoenix Industrial Market Stays Strong
Due to close proximity to delivery routes throughout the Southwest, Phoenix’s industrial market remains a strong distribution hub, reports NAI Global. Even though the market posted negative absorption at year-end 2008 for the first time since 2001, the city’s industrial sector should rebound quickly when the economy begins to regain its strength.
Inline Retail Rental Rates
Source: Grubb & Ellis