University of Georgia economist predicts very slow growth in Georgia in 2012

Wednesday, Nov. 30, 2011

By TONY ADAMS - tadams@ledger-enquirer.com

 

Summary: Despite Monday's article "Growth in Commercial Real Estate Markets Expected in 2012" Georgia's commercial real estate markets may lag the nation's growth. Because of only slight to moderate projected increases in the construction, manufacturing and retail sectors of the Georgia economy, this will be reflected in the amount of commercial real estate bought or leased.

Key Quotes
Georgia will finally stem the bleeding of jobs in 2012, although recovering what has been lost could take years. That’s the expectation of the University of Georgia’s Selig Center for Economic Growth, with Terry College of Business Dean Robert Sumichrast delivering a sobering forecast to business and government leaders Tuesday in Atlanta.

“Our forecast is for more of what we have seen the past couple of years,” he said. “We might see continued slow growth or, technically, we might see patches of recession. Either way, unemployment will remain high.”

To buck that trend, Sumichrast said Georgia must move away from its reliance on real estate development spurred by the once-constant migration of people to the Peach State. Instead, he said Georgia must offer even more incentives to companies wishing to relocate here, while fostering the research and development sector. It also must nurture its venture capital markets to create more entrepreneurs, he said.

Find out who Sumichrast is and read the whole article at University of Georgia economist predicts very slow growth in Georgia in 2012.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Growth in Commercial Real Estate Markets Expected in 2012

press release

WASHINGTON, DC, Nov 28, 2011 (MARKETWIRE via COMTEX) 

Summary: Commercial real estate growth was flat in 2011, but economic growth and more jobs signal a stronger 2012.

Key Quotes:

Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. "Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant's market," he said. "However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year."

The commercial real estate market is expected to follow the general economy. "Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn't ramp up, rent growth could potentially approach 7 percent over the next two years," Yun said.

Vacancy rates in the office sector are expected to fall from 16.7 percent in the current quarter to 16.1 percent in the fourth quarter of 2012.

Industrial vacancy rates are projected to decline from 12.3 percent in the fourth quarter of this year to 11.7 percent in the fourth quarter of 2012.

Retail vacancy rates are likely to decline from 12.6 percent in the current quarter to 11.8 percent in the fourth quarter of 2012.

The apartment rental market -- multifamily housing -- is expected to see vacancy rates drop from 5.0 percent in the fourth quarter to 4.3 percent in the fourth quarter of 2012; multifamily vacancy rates below 5 percent generally are considered a landlord's market with demand justifying higher rents.

The full article can be read at Growth in Commercial Real Estate Markets Expected in 2012.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Platinum Partners Helps Pack the Pantry this Thanksgiving

Our firm donated twenty large Rubbermaid tubs to America's Second Harvest of Coastal Georgia.
These tubs created a mountain in the lobby!

Read the full article at Platinum Partners Helps Pack the Pantry this Thanksgiving

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Growth at Savannah-Brunswick could herald stronger economy

Published Monday, November 28, 2011 in Local

From STAFF and WIRE REPORTS

news@newnan.com 

Summary: A 5% growth rate from the last quarter of fiscal year 2011 to the first quarter of fiscal year 2012 at the Savannah/Brunswick ports means millions in revenue and a strengthening economy.

Key Quotes:

Some experts see economic growth in the shipping industry as a precursor of general economic improvement. Robert Morse, spokesman for the Georgia Ports Authority, said earlier this year that transporting goods by ship was "the part of the economy that came back quickest" after the recent economic downturn.

After a slight dip during the worst of the economic doldrums, the ports at Savannah and Brunswick "are back to record numbers," Morse said in early 2011. "That's good news."

"Elected officials from both sides of the aisle and business leaders from all corners of the state understand the significance the ports have as an economic engine," Gov. Nathan Deal said. "The need to maintain the Port of Savannah as a viable, efficient point of entry for international shipping cannot be overstated."

"The expansion of this port is a job creator," U.S. Transportation Secretary Ray LaHood said during his visit to Savannah earlier this month. "It fits the president's agenda of putting people back to work."

Read the full article at Growth at Savannah-Brunswick could herald stronger economy.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

For Sale: Fully Leased Apartment Building

101 Woodhouse Lane, Savannah, Ga. 31406

Four 2BR/1BA apartments fully leased with recent upgrades. Each apartment has an eat-in kitchen, washer, dryer, central heat and air.

On a bus line. Sidewalks, street lights, walk to shopping.



Each unit collects $650 a month in rent with a $400 deposit. Rental market is hot! Act quickly! Rent includes maintanence, but not electricity, garbage or water. Cable ready.

Priced to move at $239,900.

Savannah Multi-List MLS #91904

Loopnet Listing ID 17392885

A. Joseph Marshall
Connie Farmer Ray, Broker
Coldwell Banker Commercial
912-352-1222
Commercial Real Estate Advisor

Savannah, Ga 

Multiple Signs Point to Real Estate Rebound

RISMEDIA, Friday, November 25, 2011—

Summary- The past few weeks have showcased numerous signals that the real estate market is on the rise. Recently, we have reported statistics pointing to an industry turnaround, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications and a slew of regional market improvements across the country.
A recent Marketwatch story written by Amy Hoak points out that housing markets in the Great Plains, including those in North and South Dakota, Texas, Wyoming, Nebraska, Louisiana and Iowa, are showing the most signs of strength these days, according to a recent report from Veros, a risk management and valuation services firm.

Hoak notes that Bismarck, North Dakota., is expected to be the strongest market in the country in the year ahead, with housing values appreciating at a 5.6% clip, according to Veros. Other markets projected to be among the strongest in the year ahead include Honolulu; Fargo, North Dakota.; Harrisburg/Carlisle, Pennsylvania; and Pittsburgh. Washington, D.C., and Boston remain strong city markets.

Hoak writes that while not many markets are fully rebounding, at least a good number of them likely won't see values fall at quite as rapid a pace as in recent years, according to the report.

"Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur. The encouraging news is that many markets are no longer expected to be rapidly declining," says Eric Fox, vice president of statistical and economic modeling for Veros.

The weakest U.S. markets are in Nevada, inland areas of California, Washington and Oregon, according to the report. The weakest market in the year ahead: Bakersfield, California, where foreclosures have been a huge problem.

Hoak wraps up the story with words of assurance; While prices aren't on the upswing in many places, at least they're not expected to fall that rapidly in the coming year.

The full article can be read at Multiple Signs Point to Real Estate

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Sold! Commercial Real Estate Assemblage in Garden City

The sale of 302 Hwy 80 in Garden City completed on Nov. 21.

One acre with high traffic count and easy access.

Tear down these buildings and build a new business!

Tear down costs minimal.

The corner of Haslam and Powers Avenues.

Total days on the market: 53!

A. Joseph Marshall

Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga 

Someone Has Already Caught the Falling Knife as Smart Money Moves Into Commercial Real Estate

Posted by Michael Gerrity 11/23/11 8:20 AM EST
(MIAMI, FL) --
Summary: The most ideal time to buy commercial real estate investments appears to have passed. Smart money buys commercial real estate when property values are below replacement costs. 

Important segments: 
"Don't bet against real estate" was one of the themes at a recent Realtors Commercial Alliance (RCA) conference this past week at the Biltmore Resort in Miami, a day-long event sponsored by the Miami Association of Realtors that focused on the current conditions of the U.S. commercial real estate investment and development marketplace.

According to the keynote speaker, Dr. Randy Anderson, the Howard Phillips Eminent Scholar Chair and Professor of Real Estate at the University of Central Florida, "many real estate market segments have started to strengthen; meaning that someone has already caught the 'Falling Knife' and investors should now be taking a hard look at making real estate allocations."

Anderson showed long-term relative strength of investing in commercial real estate as part of a mixed asset portfolio.  Anderson noted that "the smart money has already started to move strategically into the commercial real estate space," and he stated that some of the current investment opportunities are "in places and products that may surprise you."

For the full article and a break down of four commercial property segments read: Someone Has Already Caught the Falling Knife as Smart Money Moves Into Commercial Real Estate, Says UCF Economist

 A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Why You Should Invest in Austin, TX & Charlotte, NC.

In this video, Rand discusses why you should invest in real estate in Austin, TX and Charlotte, NC. View the view  "Why You Should Invest in Austin "on YouTube.





A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Savannah Expands Intermodal Railyard

Savannah Expands Intermodal Railyard

Joseph Bonney, Senior Editor | Nov 21, 2011 3:05PM GMT

The Journal of Commerce Online - News Story

Summary: Georgia Port Authority Board approves 6,000-foot extension of Mason Intermodal Container Transfer Facility because of increased traffic through port.

Key points:
The Georgia Ports Authority board approved a $6.5 million, 6,000-foot extension of the Mason Intermodal Container Transfer Facility, as the Port of Savannah aim to further fuel growing intermodal rail traffic.

Construction will begin in January on the project, which will increase to 4,291 linear feet the rail track at two railyards serving CSX and Norfolk Southern at the port’s Garden City Terminal.

Intermodal container transfers at the port from July through October, the first four months of the GPA’s fiscal year, rose 14 percent to 109,036 moves. August volumes were 28,610, a record.

October container volume was down 6.7 percent year-over-year, with a 9.43 percent drop in imports offsetting a 3.48 percent increase in export loads. Through the first four months of the fiscal year, container volumes were up 1 percent.

The port authority posted a 10.4 percent increase to 207,545 tons in breakbulk volumes. Through the first four months of the fiscal year, breakbulk volume was up 14.9 percent 797,486 tons.

-- Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Retail Space Availability in U.S. to Fall Next Year, CBRE Says

By Brian Louis

Nov. 21 (Bloomberg) --

Summary of article: The number of vacant space in shopping centers (strip malls, pad sites, etc) will decrease next year for the first time in 7 years. This follows strong industrial growth and increased consumer spending.

Important quotes:

Space available for leasing at U.S. local shopping centers will decline next year for the first time since 2005 as a growing economy spurs retailer expansion, commercial-property brokerage CBRE Group Inc. said.

The availability rate, a measure of space being marketed and ready for tenant construction within a year, will fall to 12.4 percent for neighborhood and community shopping centers at the end of 2012. That’s down from a peak of 13.3 percent in the second quarter of this year, according to a forecast from CBRE Econometric

Advisors, a unit of Los Angeles-based CBRE Group.

Purchases at U.S. retailers rose 0.5 percent in October, following a 1.1 percent increase the month before, Commerce Department figures showed last week. Sales at electronics stores climbed the most in two years.

A lack of shopping-center construction will also help landlords rent existing space, according to Abigail Rosenbaum, an economist at CBRE Econometric Advisors in Boston.

Read the full article at Retail Space Availability in U.S. to Fall Next Year

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Moody's: Commercial Real-Estate Prices Fell In September

DOW JONES NEWSWIRES

Summary of article: CRE prices fell in September after a quarter of growth. Expect ups and downs in pricing over the next several years.

Important quotes from article:
U.S. commercial real-estate prices fell 1.4% in September, ending a four-month growth streak, according to Moody's Investors Service, which expects the "bottoming process" for the sector to continue for the next two years.

Prices in the sector remain near its two-year average price level, Moody's said.

Still, Moody's expects "multi-family and hotel properties to lead the price recovery," said Nick Levidy,

Moody's managing director. "Office and retail will lag mostly because of a very high number of vacancies and the burn-off of above-market rent leases."

Read the whole article from Commercial Real-Estate Prices Fell In September

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Dos and Don'ts for Business Sellers

If you are a business owner who is contemplating selling your business, please follow these dos or don'ts:

• Do have all of your business documentation in order. This includes financial statements, tax returns, tax filings, lease agreements, loan documents, contracts, etc.
• Don't underestimate the value of your business. Rely on a business valuation professional or an experienced business broker to recast your tax returns to reflect the true cash flow and value.
• Don't overprice your business. This is crucial in order to attract the right buyer for your business and if not followed could bring irreparable damage to your effort.
• Do use a professional business broker or intermediary. You should focus on continuing to operate your business at the highest level. Your broker will assist with determining the asking price, prepare a marketing plan of action to maximize the selling price, maintain confidentiality, handle all buyer activity, negotiations, bring offers and complete the entire transaction to a successful close.

Read the full article on "Dos and Don'ts for business sellers" by Kevin Nery for the New England Business Bulletin.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.

Louisville's Strategy to Revitalize Commercial Real Estate Applicable to Savannah

While Louisville seeks to revitalize the Charlestown corridor, these ideas could be applied to the revitalization efforts underway on MLK and Montgomery, and East Broad in the future.

Developer Jeffrey Morgan says there’s a key to fostering economic development in neighborhood business districts.

If there is an entrepreneurial spirit "within the community, and if we tap into that and foster it by providing programs to support them and become successful business owners, then we could effectively solve both sides of the equation,” Morgan said.

Morgan focused on revitalizing neighborhood business districts, which handle the day-to-day convenience shopping needs of a neighborhood. He said blighted neighborhood business districts see more national chain stores than mom-and-pop shops.

“National chains tend to be around major transportation arteries, so you’re seeing a lot of franchises go in, like McDonald’s, because they know and recognize there are retail markets that are untapped and underserved, so you start to see them go to these areas,” Morgan said.

He said not only is it important to have business growth for economic growth but also for creating more jobs.

“Real choice includes local employment access. It’s important to put jobs into the neighborhoods,” Morgan said. “Local jobs reduce transportation costs, increase time with families and contribute to the local economy.”

All good ideas to add value to commercial real estate in underused areas. Read the full article at "Making sure the dollars stay at home" by Leah Tate of the News and Tribune.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.

Big properties' recovery to be weak, except for multi-family sector

Commercial landlords will see falling vacancies and rising rents over the next two years, but the recovery will be mild in all but the apartment sector, according to the National Association of Realtors U.S. commercial real estate forecast.

The forecast was during NAR’s conference in Anaheim.

NAR Chief Economist Lawrence Yun based his forecast on projections that the U.S. economy will avoid recession and add 3 million to 4 million jobs in the next two years.

Read the full article at "Realtors" Big Properties' Recovery to Be Weak" written by Jeff Collins with the OC Register.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.

You Did It! Congress Restores FHA Loan Limits

YOU DID IT! Last night Congress restored the loan limits for the Federal Housing Administration (FHA) for two years. As you know, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery. NAR immediately went to work with the goal to get the loan limits restored in Congress. For weeks that goal seemed unlikely. You, and countless other REALTORS® like you along with YOUR leadership and YOUR management team worked to educate Congress that well-qualified buyers didn't need yet another hurdle to access affordable mortgage financing. They finally listened. Because we were persistent. And because we were right. The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000. The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500. The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR will continue to press Congress to use the additional time to complete their work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country. I know that when we work together we can accomplish anything we set our minds to in order to preserve, protect and defend the American Dream of Home Ownership. Because of your excellent work, I am continually reminded that “REALTORS® are the Heart of the Deal.” With much appreciation, Moe Veissi 2012 President NATIONAL ASSOCIATION OF REALTORS®

Savannah Stomps Atlanta in Travel + Leisure's 2011 America's Favorite Cities Survey

ATLANTA and SAVANNAH -- In Travel + Leisure magazine's 2011 America's Favorite Cities face-off between the two Georgia cities measured -- Atlanta and Savannah -- Atlanta loses.

Savannah wins in every category measured against Atlanta: people, nightlife, culture, shopping, food/drink/restaurants, quality of life and visitor experience, best times to visit and type of trip.

Of all 35 U.S. cities considered, Savannah took the No. 1 spot for romantic escape, public parks and outdoor access, and visiting in the fall.

The annual online survey appeared on TravelandLeisure.com from May 16 to Aug. 15. Respondents were asked to identify if they were visitors or residents, then to rank their choice of the 35 cities in 54 questions across the eight categories.

Favorite Cities winners are featured in the magazine's November issue.

Here are highlights from Atlanta's and Savannah's results:

Atlanta
THE BEST...
Barbecue (#12)
Luxury stores (#18)
Affordability (#24)
Sports-crazed (#25)
Winter (#25)

THE WORST...
Driving ability (#34)
Romantic escape (#34)
Safety (#34)

Savannah
THE BEST...
Romantic escape (#1)
Public parks and outdoor access (#1)
Fall (#1)
Architecture/Cool buildings (#2)
Valentine's Day (#2)

THE WORST...
Sports-crazed (#31)
Luxury stores (#27)
Summer (#24)

The article can be seen at CitiBizList in its original format.
And here are the complete results of the survey.

A. Joseph Marshall
Commercial Real Estate Advisor
Coldwell Banker Commercial
Savannah, Ga.

S.C. to launch TDL Council next week

S.C. to launch TDL Council next week

 

Summary: Three years in the making, the New Carolina’s Transportation Distribution Logistics Council was formed to promote and build South Carolina’s distribution pipeline.The TDL Council marks its official launch Nov. 22 with a meeting of stakeholders in Columbia.

 

A. Joseph Marshall

Commercial Real Estate Advisor

Savannah, Ga.

SC and GA reach harbor deepening agreement.

Sweet! In our lifetime!

http://chronicle.augusta.com/latest-news/2011-11-10/savannah-harbor-deepening-settlement-reached?v=1320934479

A. Joseph Marshall
Commercial Real Estate Advisor
Savannah, Ga.

A Deeper Harbor Not Likely to Jeopardize Species

Read the full article here!

A. Joseph Marshall
Commercial Real Estate Advisor
Savannah, Ga.

Boy have I slacked off!

When business picks up I have to cut my time expenditures somewhere! During this last bout of activity, blog posts were put on the shelf to attend to pressing matters, like "Help my office burned to the ground last night and I need a new place tomorrow." True story.

But now I have a breather so I will resume regular postings.

Perhaps as a immensely huge and subtle reminder of the need to deepen the Savannah River, the Figaro will be returning to our fair city on Dec. 6. Please take the opportunity to watch this behemoth float by. This is the future of shipping. It is here and we are unprepared.