January 31, 2012 - 12:01am By Bill Dawers
Summary: Successful redevelopment of the former Backus dealership property requires cooperation between the State of Georgia, Chatham County and the City of Savannah. A reconfiguration of traffic lanes and a decision on six zoning variances are essential to the project.
Key Quotes:
The MPC will look at the general development plan for 1801 East Victory Drive, the old Backus Cadillac property. MPC staff is recommending approval of the plan, assuming five conditions can be met.
An existing median cut on Victory Drive near Limerick Street would be eliminated. A median cut closer to the Truman for access to the shopping center on the north side of Victory would be added. So would a left turn lane for westbound traffic on Victory approaching Dixie Avenue.
A traffic signal would be added at the Dixie intersection to accommodate westbound drivers who want easy access to the development.
Certain public rights-of-way would have to be vacated by the city of Savannah. That includes closing a portion of Limerick Street.
The MPC would have to grant six variances. Four of those variances involve setbacks, and one involves driving-aisle width in the parking lot. The final variance would allow a one percent increase in the number of allowable parking spaces for compact cars.
Read the full article at: Exciting development plan for former Backus dealership.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Tuesday, January 31, 2012
Two Steak 'N Shake's Coming To Savannah
Summary: CBI construction company owner, Steve Head, and Steak 'N Shake franchisee owner Mike Heyden, begin construction of new Steak 'N Shake in Statesboro and site selection for two locations in Savannah.
Key Quotes:
“We researched several different franchise opportunities, did due diligence, flew to corporate headquarters and decided to move forward in June of last year,” Mike Heyden, owner of the new Steak n’ Shake, said.
Heyden and Hamilton are also planning on opening two more restaurants in Savannah.
“We haven’t picked locations out yet, but when we decided to go forward with this concept we signed an area agreement that committed us to the three restaurants,” Heyden said.
Read the full article at: Steak 'n Shake's construction begins.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Key Quotes:
“We researched several different franchise opportunities, did due diligence, flew to corporate headquarters and decided to move forward in June of last year,” Mike Heyden, owner of the new Steak n’ Shake, said.
Heyden and Hamilton are also planning on opening two more restaurants in Savannah.
“We haven’t picked locations out yet, but when we decided to go forward with this concept we signed an area agreement that committed us to the three restaurants,” Heyden said.
Read the full article at: Steak 'n Shake's construction begins.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
US Commercial Property Investment Up 57% in 2011
By +Liam Bailey for ipinglobal.com
Fuelled by exceptional growth in retail property and low-rise apartment investment, American commercial property investment grew 57% year on year in 2011 according to the latest data from Real Capital Analytics.
The data shows that more than 14,700 properties, each worth at least $2.5 million changed hands in 2011, with retail property investment up 91% compared to 2010 and low-rise apartment investment up 70% compared to the previous year. This was in spite of the fact that turmoil in the MBS market curbed finance leading to a slowdown in transactions in the second half of the year. However, the office and hotel sectors did see an effect from this, with transactions falling sharply in the final quarter following large year on year growth in the previous six quarters.
According to the firm the rise was fuelled by debt-laden owners selling off assets acquired during the boom years at low prices, at the same time as investors were seeking increased yields from income-producing properties.
"Buyers have started to broaden their horizons both geographically and by property type," the firm said.
This is by far the most positive data we have seen on commercial property investment in the US last year. Normally when you see such large growth it is because of an exceptionally poor performance in the previous dataset, but this is not the case here; we know that US commercial property transactions held strongly in 2010.
Read the full article at: US Commercial Property Investment Up 57% in 2011
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Monday 30 January 2012
Fuelled by exceptional growth in retail property and low-rise apartment investment, American commercial property investment grew 57% year on year in 2011 according to the latest data from Real Capital Analytics.
The data shows that more than 14,700 properties, each worth at least $2.5 million changed hands in 2011, with retail property investment up 91% compared to 2010 and low-rise apartment investment up 70% compared to the previous year. This was in spite of the fact that turmoil in the MBS market curbed finance leading to a slowdown in transactions in the second half of the year. However, the office and hotel sectors did see an effect from this, with transactions falling sharply in the final quarter following large year on year growth in the previous six quarters.
According to the firm the rise was fuelled by debt-laden owners selling off assets acquired during the boom years at low prices, at the same time as investors were seeking increased yields from income-producing properties.
"Buyers have started to broaden their horizons both geographically and by property type," the firm said.
This is by far the most positive data we have seen on commercial property investment in the US last year. Normally when you see such large growth it is because of an exceptionally poor performance in the previous dataset, but this is not the case here; we know that US commercial property transactions held strongly in 2010.
Read the full article at: US Commercial Property Investment Up 57% in 2011
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Monday, January 30, 2012
The Smart Way to Choose Investment Properties
Summary: The key to a successful rental property is not getting it at a bargain basement price; the key to success is the tenant who lives there. Before you buy based on price, consider buying based on potential occupancy. Invest in great properties in great areas.
Key Quotes:
Due to their low pricing, distressed and bank-owned properties in particular look attractive to real estate investors.
According to James McClelland, CEO and president of MACK Companies, at the heart of every successful real estate investment is a great tenant.
“This might seem counterintuitive to the novice real estate investor, but when we look for places to invest in properties we always begin with the tenant in mind,” said McClelland.” A real estate investment works when you have steady, dependable income. And the best way to get that is by having excellent tenants.”
Read the full article at: The Smart Way to Choose Investment Properties.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
 |
| A great buy? Depends on who wants to live there! |
Key Quotes:
Due to their low pricing, distressed and bank-owned properties in particular look attractive to real estate investors.
According to James McClelland, CEO and president of MACK Companies, at the heart of every successful real estate investment is a great tenant.
“This might seem counterintuitive to the novice real estate investor, but when we look for places to invest in properties we always begin with the tenant in mind,” said McClelland.” A real estate investment works when you have steady, dependable income. And the best way to get that is by having excellent tenants.”
Read the full article at: The Smart Way to Choose Investment Properties.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Saturday, January 28, 2012
New Trivia Question
My monthly newsletter, which is now online via this blog and SellingSavannahNow on Facebook, always featured a trivia question. It's time for an alert reader to win Carmike Cash for use toward movie tickets.
Last month's winner was Lois Carroll of Savannah who was the first to correctly answer the trivia question. I forget what the trivia question was right now, but it was a good one.
This month's trivia question is:
The makers of this popular children's treat have not changed the packaging design since it was created. The container was originally intended to create a string of ornaments on a Christmas tree after the recipient opened it and enjoyed the contents.
First person to email me with the correct answer naming the mystery treat will win! Good luck.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Last month's winner was Lois Carroll of Savannah who was the first to correctly answer the trivia question. I forget what the trivia question was right now, but it was a good one.
This month's trivia question is:
The makers of this popular children's treat have not changed the packaging design since it was created. The container was originally intended to create a string of ornaments on a Christmas tree after the recipient opened it and enjoyed the contents.
First person to email me with the correct answer naming the mystery treat will win! Good luck.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Friday, January 27, 2012
U.S. Customs to open lab locally
Posted: January 25, 2012 - 4:24pm | Updated: January 26, 2012 - 3:51pm
By Adam Van BrimmerKey Quotes:
The U.S. Customs and Boarder Protection will open an analytical laboratory and office complex on Chatham Parkway, the General Services Administration announced Tuesday.
The lab will replace the existing Customs facility located near the Port of Savannah on Bourne Avenue. No new jobs will be created with the opening of the 35,000-square-foot building in June 2013, according to a Customs spokeswoman.
Read the full article at: UPDATE: U.S. Customs to open lab locally
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Thursday, January 26, 2012
Georgia ports boosted volume, advanced harbor-deepening project in 2011
Posted 1/25/2012 on Progressive Railroading
On Monday, the Georgia Ports Authority (GPA) announced its ports in Savannah and Brunswick registered record volumes in 2011. The ports handled 26.1 million tons of cargo, up 4.3 percent compared with 2010 volumes.
In terms of container volume, the Savannah port handled a record 2.95 million 20-foot equivalent units (TEUs), up 3.5 percent year over year. The Brunswick port handled a record 495,000 auto and machinery units, a 23 percent increase.
The authority’s position as the nation’s No. 2 export port “provides a clear and compelling case” for advancing the Savannah Harbor Expansion Project (SHEP), said GPA Chairman Alec Poitevint in a prepared statement. The Savannah port, which is served by CSX Transportation and Norfolk Southern Railway, is the nation’s fourth-largest container port and needs to accommodate larger ships to prepare for the Panama Canal expansion in 2014, according to the GPA. SHEP calls for deepening the harbor’s depth from 42 foot to as much as 48 feet.
Work to deepen Savannah Harbor “is precisely the type of effort that will bring sustainable economic recovery to the United States,” said Poitevint. Last year, the GPA finalized the SHEP study and moved the project toward construction. The project has secured $134 million in state funds and Gov. Nathan Deal has proposed an additional $46.7 million.
The authority’s position as the nation’s No. 2 export port “provides a clear and compelling case” for advancing the Savannah Harbor Expansion Project (SHEP), said GPA Chairman Alec Poitevint in a prepared statement. The Savannah port, which is served by CSX Transportation and Norfolk Southern Railway, is the nation’s fourth-largest container port and needs to accommodate larger ships to prepare for the Panama Canal expansion in 2014, according to the GPA. SHEP calls for deepening the harbor’s depth from 42 foot to as much as 48 feet.
Work to deepen Savannah Harbor “is precisely the type of effort that will bring sustainable economic recovery to the United States,” said Poitevint. Last year, the GPA finalized the SHEP study and moved the project toward construction. The project has secured $134 million in state funds and Gov. Nathan Deal has proposed an additional $46.7 million.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, January 25, 2012
A prescription for Atlanta commercial real estate investment (and Savannah)
Atlanta Business Chronicle by Andy Litvak, Hartman Simons & Wood LLP
Summary: Stable commercial properties with consistent, low risk dividends are in high demand among conversative investors. The commercial property that most closely fits this description in this economy is the medical office building (aka, MOB).
While written for the Atlanta market, Savannah's medical community is no joke either.
Key Quotes:
"The strength and credit of the physician practice group tenants, historically low turnover and consistent patient base requiring medical services lends to an inherently strong degree of stability. Now, fast forward and infuse equal doses of the ever-evolving world of health care legislation reform, new trends in practice group and hospital consolidation and other anticipated changes in health care delivery models — and you have all the ingredients to attract major interest in MOB investment by sophisticated investors."
"Hospitals have always been capital intensive operations and MOB development has likewise always been a strategic proposition. Growth has been, and will continue to be, carefully tailored to the key drivers and sources of health care services: physicians and the ultimate recipients (patients). Much uncertainty remains in this evolving healthcare landscape."
"MOB owners and investors must maintain flexibility, as doctors continue to seek reduced occupancy costs and large up front economic leasing packages. Nonetheless, these are exciting times for all those involved in medical oriented commercial real estate."
Read the full article at A prescription for Atlanta commercial real estate investment
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Date: Tuesday, January 24, 2012, 1:34pm EST
Summary: Stable commercial properties with consistent, low risk dividends are in high demand among conversative investors. The commercial property that most closely fits this description in this economy is the medical office building (aka, MOB).
While written for the Atlanta market, Savannah's medical community is no joke either.
Key Quotes:
"The strength and credit of the physician practice group tenants, historically low turnover and consistent patient base requiring medical services lends to an inherently strong degree of stability. Now, fast forward and infuse equal doses of the ever-evolving world of health care legislation reform, new trends in practice group and hospital consolidation and other anticipated changes in health care delivery models — and you have all the ingredients to attract major interest in MOB investment by sophisticated investors."
"Hospitals have always been capital intensive operations and MOB development has likewise always been a strategic proposition. Growth has been, and will continue to be, carefully tailored to the key drivers and sources of health care services: physicians and the ultimate recipients (patients). Much uncertainty remains in this evolving healthcare landscape."
"MOB owners and investors must maintain flexibility, as doctors continue to seek reduced occupancy costs and large up front economic leasing packages. Nonetheless, these are exciting times for all those involved in medical oriented commercial real estate."
Read the full article at A prescription for Atlanta commercial real estate investment
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Friday, January 20, 2012
13 Types of Insurance a Small Business Owner Should Have
From Forbes.com 1/19/2012 @ 8:57AM
Summary: Thirteen types of insurance a small business owner should have include: general liability, property, business owner's, commercial auto, worker's comp, professional liability, directors and officers, data breach, homeowners, renters, life, personal auto and personall umbrella.
Read the full article at: 13 Types of Insurance a Small Business Owner Should Have
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary: Thirteen types of insurance a small business owner should have include: general liability, property, business owner's, commercial auto, worker's comp, professional liability, directors and officers, data breach, homeowners, renters, life, personal auto and personall umbrella.
Read the full article at: 13 Types of Insurance a Small Business Owner Should Have
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, January 18, 2012
Commercial Real Estate Sees Seventh Consecutive Monthly Price Increase in November
Summary: CoStar reports a 6% monthly gain in November 2011 by measuring 738 repeat sales in that month. Distressed sales as a percentage of these repeat sales also decreased. This indicates that the U.S. commercial real estate market is slowly improving.
Key Quotes: Demonstrated in graphs today.
A repeat sale index approach measures changes in price for specific commercial properties as they re-sell over time. It basically tracks price differentials. I think this approach excludes re-sales within a single year, but don't quote me on that. Can some alert reader verify that? It is a good approach because it calculates the statistical significance of price increases rather than going by reported appreciation.
Read the full article at: Latest CoStar Commercial Repeat-Sale Analysis: Commercial Real Estate Sees Seventh Consecutive Monthly Price Increase in November
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Key Quotes: Demonstrated in graphs today.
A repeat sale index approach measures changes in price for specific commercial properties as they re-sell over time. It basically tracks price differentials. I think this approach excludes re-sales within a single year, but don't quote me on that. Can some alert reader verify that? It is a good approach because it calculates the statistical significance of price increases rather than going by reported appreciation.
Read the full article at: Latest CoStar Commercial Repeat-Sale Analysis: Commercial Real Estate Sees Seventh Consecutive Monthly Price Increase in November
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Tuesday, January 17, 2012
Savannah’s port and the regulatory problem
I like Kyle Wingfield's opinion pieces. They're nicely put together.
Here's one worth reading if you didn't catch it in the AJC: Savannah’s port and the regulatory problem.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Here's one worth reading if you didn't catch it in the AJC: Savannah’s port and the regulatory problem.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
New 165-room hotel planned for River Street
Summary: Best Western is going to build a new 165 room hotel on the west end of River Street on the site of the soon to be demolished hotel annex.
Read the full article at New 165-room hotel planned for River Street.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Read the full article at New 165-room hotel planned for River Street.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Thursday, January 12, 2012
Food Lion to close four Savannah stores
January 12, 2012 - 12:05pm
Food Lion's parent company, Delhaize America, will close four area stores within the next 30 days as part of a larger "repositioning" strategy, the grocery giant announced Thursday.
Among the stores affected are two of the company's newest and most bally-hooed local stores: The market at Martin Luther King Jr. Boulevard and Gwinnett Street that opened last March and the Southbridge location that opened in 2009.
The Food Lion in the Eisenhower Square shopping center and another store in Rincon were also on the closure list, which included 113 stores in Florida, Georgia, Kentucky, North Carolina, Pennsylvania, South Carolina, Virginia, Tennessee and West Virginia.
"Food Lion is focused on repositioning our business for future growth," said Cathy Green Burns, president of Food Lion, in a press release. "By closing underperforming stores, we will continue to position Food Lion for success, especially in light of our brand strategy results."
Local reaction was not so positive. Word of the MLK store closing swept through Savannah City Council chambers Thursday. Alderman Van Johnson, who represents the district, called the news "devastating."
Added Mayor Edna Johnson: "The city is obviously very disappointed with this news. The store served an area that was underserved, including public housing residents, senior citizens and SCAD students."
The MLK location has attracted "local interest," according to Jackson."That is why we are going to continue to look on the bright side and not give up on it," she said.
By 
Food Lion's parent company, Delhaize America, will close four area stores within the next 30 days as part of a larger "repositioning" strategy, the grocery giant announced Thursday.
Among the stores affected are two of the company's newest and most bally-hooed local stores: The market at Martin Luther King Jr. Boulevard and Gwinnett Street that opened last March and the Southbridge location that opened in 2009.
The Food Lion in the Eisenhower Square shopping center and another store in Rincon were also on the closure list, which included 113 stores in Florida, Georgia, Kentucky, North Carolina, Pennsylvania, South Carolina, Virginia, Tennessee and West Virginia.
"Food Lion is focused on repositioning our business for future growth," said Cathy Green Burns, president of Food Lion, in a press release. "By closing underperforming stores, we will continue to position Food Lion for success, especially in light of our brand strategy results."
Local reaction was not so positive. Word of the MLK store closing swept through Savannah City Council chambers Thursday. Alderman Van Johnson, who represents the district, called the news "devastating."
Added Mayor Edna Johnson: "The city is obviously very disappointed with this news. The store served an area that was underserved, including public housing residents, senior citizens and SCAD students."
The MLK location has attracted "local interest," according to Jackson."That is why we are going to continue to look on the bright side and not give up on it," she said.
--
You can read the article in its original context, complete with asinine public commentary, at Food Lion to close four local stores.
Reports Identify Most Stressed Sectors in Corporate America
January 11, 2012
Summary: Commercial landlords are put on notice; media/entertainment, health care and consumer product companies are the shakiest in the U.S.
Key Quotes:
In Standard & Poor's opinion, companies in media and entertainment, consumer products and health care are among the most troubled in the U.S.
And according to Challenger, Gray & Christmas, job cuts were dominated by the government and financial sectors in 2011, and those sectors are likely to continue to struggle in 2012.
And according to Challenger, Gray & Christmas, job cuts were dominated by the government and financial sectors in 2011, and those sectors are likely to continue to struggle in 2012.
"Job creation is likely to remain slow and steady in 2012. Washington seems paralyzed when it comes to enacting policies that might spur job growth. Even if they were to pass some legislation that could help, the impact is rarely immediate and is typically smaller than anticipated.
Savannah has a host of health care companies that are together a key economic driver. Based on the article, a landlord would do well to check out their income statements before creating/renewing a lease.
Property Investors Bet on Rising Demand for U.S. Charter Schools
Article by Brian Louis - Jan 11, 2012
Summary: Charter schools are now, and will soon be much more, a sought after solution to waiting lists for existing charter schools and those wanting out of general government schools. For example, in Savannah there is a waiting list for Savannah Arts Academy and to fill this need, a major university in Michigan is applying for a charter with the city and county. I am sure more will follow.
Key Quotes:
More than 400,000 children nationwide are on waiting lists for the schools, the national alliance said in a December statement. Demand has increased as parents seek alternatives to traditional public schools.
The schools charge no tuition. They receive funding from municipal, state and federal tax dollars and operate under a charter that’s granted by the state or a local authority, according to a May report by Ernst & Young LLP. Each school has its own governing board.
While school landlords may eventually profit from a sale, income primarily comes from long-term lease agreements with operating companies.
Charter schools are “going to be a bigger piece of the business” for the landlord in the long term, Craig Mailman, a New York-based analyst at KeyBanc Capital Markets Inc., said in a telephone interview.
Read the full article at Property Investors Bet on Rising Demand for U.S. Charter Schools.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary: Charter schools are now, and will soon be much more, a sought after solution to waiting lists for existing charter schools and those wanting out of general government schools. For example, in Savannah there is a waiting list for Savannah Arts Academy and to fill this need, a major university in Michigan is applying for a charter with the city and county. I am sure more will follow.
Key Quotes:
More than 400,000 children nationwide are on waiting lists for the schools, the national alliance said in a December statement. Demand has increased as parents seek alternatives to traditional public schools.
The schools charge no tuition. They receive funding from municipal, state and federal tax dollars and operate under a charter that’s granted by the state or a local authority, according to a May report by Ernst & Young LLP. Each school has its own governing board.
While school landlords may eventually profit from a sale, income primarily comes from long-term lease agreements with operating companies.
Charter schools are “going to be a bigger piece of the business” for the landlord in the long term, Craig Mailman, a New York-based analyst at KeyBanc Capital Markets Inc., said in a telephone interview.
Read the full article at Property Investors Bet on Rising Demand for U.S. Charter Schools.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, January 11, 2012
Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report
Posted by Michael Gerrity 01/10/12 10:43 AM EST
Summary:
The office market improved steadily throughout 2011, ending the year with a vacancy rate down 50 bps from year end 2010, at 16%.
Industrial availability ended 2011 at 13.5%, a 80 bps decline from prior year end. With most local markets seeing improved availability in Q4, it appears that modest economic growth is continuing to spur demand for industrial space.
At 13.2%, Q4 2011 retail availability - while unchanged from the previous quarter -- was 20 bps higher than the rate at the end of 2010. However, the stabilization of retail availability during the second half of 2011 marked an end to the relentless increases that characterized the retail real estate market since the recent recession.
Q4 2011 results highlight the continued strengthening of apartment fundamentals, fueled by occupancy gains as more former homeowners elect the rental option. The Q4 2011 vacancy rate of 5.3% was a 70 bps drop from Q4 2010.
Read the full article at Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report.
Summary:
- U.S. Office Vacancy Rates Drop to 16% in 4Q, 2011.
- Industrial Availability Continues to Decline; Now 13.5%.
- Retail Availability Holds Steady.
- Apartment vacancy Falls Amid Robust Demand.
The office market improved steadily throughout 2011, ending the year with a vacancy rate down 50 bps from year end 2010, at 16%.
Industrial availability ended 2011 at 13.5%, a 80 bps decline from prior year end. With most local markets seeing improved availability in Q4, it appears that modest economic growth is continuing to spur demand for industrial space.
At 13.2%, Q4 2011 retail availability - while unchanged from the previous quarter -- was 20 bps higher than the rate at the end of 2010. However, the stabilization of retail availability during the second half of 2011 marked an end to the relentless increases that characterized the retail real estate market since the recent recession.
Q4 2011 results highlight the continued strengthening of apartment fundamentals, fueled by occupancy gains as more former homeowners elect the rental option. The Q4 2011 vacancy rate of 5.3% was a 70 bps drop from Q4 2010.
Read the full article at Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report.
Monday, January 9, 2012
Roundabouts: The Solution for Savannah, Especially Mall Boulevard
Thomas and Hutton produce a regular newsletter regarding civil engineering trends. In their latest publication, they show that "transportation efficiency, our carbon footprint, and safety in the United States is a growing concern. Roundabouts are a viable solution and with the proper education can be a great benefit to our society."
I thought I would showcase their work today. Click on the first image to scroll through them in a larger format, if your computer allows.
I thought I would showcase their work today. Click on the first image to scroll through them in a larger format, if your computer allows.
Sunday, January 8, 2012
Small Businesses Face ‘Unusual Obstacles’ to Getting Credit
The original article on January 7, 2012 by "staff" is short and well written, so I'm foregoing a summary and key quote excerpts.
It is important to remember that small businesses are key to the economy. Here are stats from the Small Business Association.
Small firms:
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 44 percent of total U.S. private payroll.
• Generated 65 percent of net new jobs over the past 17 years.
• Create more than half of the nonfarm private GDP.
• Hire 43 percent of high tech workers ( scientists, engineers, computer programmers, and others).
• Are 52 percent home-based and 2 percent franchises.
• Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008.
• Produce 13 times more patents per employee than large patenting firms.
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 44 percent of total U.S. private payroll.
• Generated 65 percent of net new jobs over the past 17 years.
• Create more than half of the nonfarm private GDP.
• Hire 43 percent of high tech workers ( scientists, engineers, computer programmers, and others).
• Are 52 percent home-based and 2 percent franchises.
• Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008.
• Produce 13 times more patents per employee than large patenting firms.
That noted, here is the article.
In typical times of economic recovery, lower interest rates would be fueling the expansion of credit to small businesses, but this is not happening in these times of the Great Recession.
Small business owners still “appear to be facing unusual obstacles in obtaining credit,” Federal Reserve Governor Sarah Bloom Raskin said in a prepared speech Friday before the Maryland Bankers Association.
The most recent Fed survey of senior loan officers on bank lending practices fund that a “low fraction” of domestic banks were easing standards for smaller firms, those with annual sales of less than $50 million.
Moreover, surveys by the National Federation of Independent Business continue to indicate that a large proportion of small businesses find credit more difficult to obtain.
Raskin said the issue of regulatory oversight possibly stifling the access of credit to these businesses is something “that we at the Federal Reserve focus on continually.”
“Just as community banks have a deep understanding of their local communities, it is important that examiners also understand local market conditions to be able to put the bank’s management and credit decisions in the proper context,” Raskin said.
Raskin assured community bankers that the Dodd-Frank financial reform legislation, passed 2010, will result in more regulatory challenges for the largest financial institutions in the coming months. Although, larger community banks – with more than $10 billion in assets – will have to conduct their own “stress tests.”
“While the ability of businesses to access credit is a function of many factors, it is my view that the examination and supervision of the lender should not hinder the ability of creditworthy businesses to access credit,” Raskin said. “To be clear, I do not think this is occurring in any significant way…”
On the more positive said, Raskin said she is encouraged that community banks overall are improving their balance sheets, despite considerable uncertainty in many residential and commercial real estate markets across the country.
While these banks remain “weighed down with nonperforming real estate loans,” there is increasing consolidation in the community banking industry.
“Despite the tough road that many community banks still must navigate, there are promising signs that conditions seem to be stabilizing,” Raskin said. “While profitability remains below long-run historical norms, returns on equity and assets have reached their highest post-crisis levels.”
This article was found here: Small Businesses Face ‘Unusual Obstacles’ to Getting Credit
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Small business owners still “appear to be facing unusual obstacles in obtaining credit,” Federal Reserve Governor Sarah Bloom Raskin said in a prepared speech Friday before the Maryland Bankers Association.
The most recent Fed survey of senior loan officers on bank lending practices fund that a “low fraction” of domestic banks were easing standards for smaller firms, those with annual sales of less than $50 million.
Moreover, surveys by the National Federation of Independent Business continue to indicate that a large proportion of small businesses find credit more difficult to obtain.
Raskin said the issue of regulatory oversight possibly stifling the access of credit to these businesses is something “that we at the Federal Reserve focus on continually.”
“Just as community banks have a deep understanding of their local communities, it is important that examiners also understand local market conditions to be able to put the bank’s management and credit decisions in the proper context,” Raskin said.
Raskin assured community bankers that the Dodd-Frank financial reform legislation, passed 2010, will result in more regulatory challenges for the largest financial institutions in the coming months. Although, larger community banks – with more than $10 billion in assets – will have to conduct their own “stress tests.”
“While the ability of businesses to access credit is a function of many factors, it is my view that the examination and supervision of the lender should not hinder the ability of creditworthy businesses to access credit,” Raskin said. “To be clear, I do not think this is occurring in any significant way…”
On the more positive said, Raskin said she is encouraged that community banks overall are improving their balance sheets, despite considerable uncertainty in many residential and commercial real estate markets across the country.
While these banks remain “weighed down with nonperforming real estate loans,” there is increasing consolidation in the community banking industry.
“Despite the tough road that many community banks still must navigate, there are promising signs that conditions seem to be stabilizing,” Raskin said. “While profitability remains below long-run historical norms, returns on equity and assets have reached their highest post-crisis levels.”
This article was found here: Small Businesses Face ‘Unusual Obstacles’ to Getting Credit
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Thursday, January 5, 2012
U.S. Apartment Vacancies Decline to a Decade Low, Rents Climb
BloombergJanuary 05, 2012, 4:52 PM EST
By Hui-yong Yu
Summary: U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, allowing for rent increases that are likely to continue this year, Reis Inc. said.
Key Quotes:
The vacancy rate fell to 5.2 percent, the lowest since the end of 2001.
Rising foreclosures and stricter mortgage-lending standards have helped make rental housing the best-performing segment of commercial real estate for the past two years.
“The implicit demand for rental units will remain high as long as the for-sale housing market remains on the ropes,” Victor Calanog, head of research and economics for Reis, said in the report.
Rent growth may stall starting next year as a wave of new apartment development brings new projects to the market, Calanog said.
Read the full article at U.S. Apartment Vacancies Decline to a Decade Low, Rents Climb.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
By Hui-yong Yu
Summary: U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, allowing for rent increases that are likely to continue this year, Reis Inc. said.
Key Quotes:
The vacancy rate fell to 5.2 percent, the lowest since the end of 2001.
Rising foreclosures and stricter mortgage-lending standards have helped make rental housing the best-performing segment of commercial real estate for the past two years.
“The implicit demand for rental units will remain high as long as the for-sale housing market remains on the ropes,” Victor Calanog, head of research and economics for Reis, said in the report.
Rent growth may stall starting next year as a wave of new apartment development brings new projects to the market, Calanog said.
Read the full article at U.S. Apartment Vacancies Decline to a Decade Low, Rents Climb.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
2012: Better? More of the Same? or Total Economic Chaos?
CoStar News Readers Give Us Their Best Bets for What's Coming in the New Year By Mark Heschmeyer
January 4, 2012
Summary: The industry leaders predict growth, stagnation and collapse of the commercial real estate market place in the United States in 2012. The leaders with positive outlooks focus on particular cities. The leaders with moderate outlooks focus on sector performance. For example, Grubb and Ellis project a 25% increase in CRE sales, assuming that the GDP grows by 2.5% and 125,000 new jobs are added each month. Dismal outlooks are based on the broad U.S. economy.
Each person backs their position with strong arugments, leaving CoStar to split the difference and posit that 2012 will be just like 2011- modest, timid growth. Because Savannah relies on its port, and because the logistics CRE market is projected to see growth, I think Savannah will be fine. I personally think the most dismal outlooks will come to fruition not all once in 2012, but most likely further down the road. It seems that all of us "Debbie Downers" recently read "When Giants Fall" and expecting the worst.
Key Quotes:
Among the top expectations: Banks and servicers will continue to jettison the worst performing assets and seek to workout recapitalization opportunities on the better-quality assets. Similarly, institutional property investors will also continue to reposition their portfolios away from secondary markets in favor of core stable assets in primary metropolitan markets.
Multifamily properties will continue their hot streak as pent up and new demand will keep vacancies low and spur continued new construction and property retrofitting of older other property type buildings.
And, both U.S. political inaction/posturing in an election year and world economic uncertainty will continue to weigh down true recovery.
Read the full article at 2012: Better? More of the Same? or Total Economic Chaos?
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
January 4, 2012
Summary: The industry leaders predict growth, stagnation and collapse of the commercial real estate market place in the United States in 2012. The leaders with positive outlooks focus on particular cities. The leaders with moderate outlooks focus on sector performance. For example, Grubb and Ellis project a 25% increase in CRE sales, assuming that the GDP grows by 2.5% and 125,000 new jobs are added each month. Dismal outlooks are based on the broad U.S. economy.
Each person backs their position with strong arugments, leaving CoStar to split the difference and posit that 2012 will be just like 2011- modest, timid growth. Because Savannah relies on its port, and because the logistics CRE market is projected to see growth, I think Savannah will be fine. I personally think the most dismal outlooks will come to fruition not all once in 2012, but most likely further down the road. It seems that all of us "Debbie Downers" recently read "When Giants Fall" and expecting the worst.
Key Quotes:
Among the top expectations: Banks and servicers will continue to jettison the worst performing assets and seek to workout recapitalization opportunities on the better-quality assets. Similarly, institutional property investors will also continue to reposition their portfolios away from secondary markets in favor of core stable assets in primary metropolitan markets.
Multifamily properties will continue their hot streak as pent up and new demand will keep vacancies low and spur continued new construction and property retrofitting of older other property type buildings.
And, both U.S. political inaction/posturing in an election year and world economic uncertainty will continue to weigh down true recovery.
Read the full article at 2012: Better? More of the Same? or Total Economic Chaos?
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Tuesday, January 3, 2012
U.S. Scores High on Property Investment in 2012
By SiliconIndia, Tuesday, 03 January 2012, 03:59 Hrs
Summary: The U.S. is the top choice for commercial real estate investors because of stable supply and demand, improved property fundamentals, increased foreign investment and the repeal of FIRPTA.
Key Quotes:
As per the 20th annual survey conducted among the members of Association of Foreign Investors in Real Estate (AFIRE) , the best property to invest in U.S are Multifamily (such as apartments and duplexes ) then comes Industrial, Office, Retail and Hotel.
U.S. remains the best option for capital investors as they get high return of investment (ROI).
“Foreign real estate investors have made clear there is considerable pent-up demand for U.S. real estate awaiting better real estate fundamentals and relief from FIRPTA regulations,” said James A. Fetgatter, chief executive officer of AFIRE. “If the investing environment improves, the U.S. is poised to return to its ‘safe haven’ status.”
Read the full article at U.S. Scores High on Property Investment in 2012.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary: The U.S. is the top choice for commercial real estate investors because of stable supply and demand, improved property fundamentals, increased foreign investment and the repeal of FIRPTA.
Key Quotes:
As per the 20th annual survey conducted among the members of Association of Foreign Investors in Real Estate (AFIRE) , the best property to invest in U.S are Multifamily (such as apartments and duplexes ) then comes Industrial, Office, Retail and Hotel.
U.S. remains the best option for capital investors as they get high return of investment (ROI).
“Foreign real estate investors have made clear there is considerable pent-up demand for U.S. real estate awaiting better real estate fundamentals and relief from FIRPTA regulations,” said James A. Fetgatter, chief executive officer of AFIRE. “If the investing environment improves, the U.S. is poised to return to its ‘safe haven’ status.”
Read the full article at U.S. Scores High on Property Investment in 2012.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
The right site, at the right price
From http://www.dcvelocity.com/
Summary: Rising fuel costs and a sputtering economy means warehouse site selection is essential for companies to save money. Important factors are location, shipping costs, right-to-work states and community and state incentives.
Key Quotes:
For many [companies] , a less-than-optimum operating cost structure for their warehouses can compromise their competitive position for years.
These costs are expected to rise throughout the coming year. Despite continued advancements in warehouse automation technologies, overall operating costs for distribution warehousing are expected to increase by 14 to 16 percent in 2012 due to a rise in diesel fuel costs, above-average utility rate increases, and recovering real estate markets in most locales.
Container shipments are projected to increase tremendously at U.S. East Coast ports, creating inland warehouse opportunities (not unlike California's Inland Empire) for communities situated within a few hours' drive by truck from deepwater ports in Miami and Jacksonville, Fla.; Savannah, Ga.; Charleston, S.C.; Norfolk, Va.; Baltimore, Md.; Wilmington, Del.; Newark/Elizabeth, N.J.; and Boston, Mass.
To read the full article see The right site, at the right price.
Strategy December 31, 2011
special report | Warehousing
Summary: Rising fuel costs and a sputtering economy means warehouse site selection is essential for companies to save money. Important factors are location, shipping costs, right-to-work states and community and state incentives.
Key Quotes:
With fuel and shipping rates projected to rise significantly in 2012 and beyond, comparative costs in areas like labor, property taxes, energy, and real estate are under the site selection microscope like never before.
For many [companies] , a less-than-optimum operating cost structure for their warehouses can compromise their competitive position for years.
These costs are expected to rise throughout the coming year. Despite continued advancements in warehouse automation technologies, overall operating costs for distribution warehousing are expected to increase by 14 to 16 percent in 2012 due to a rise in diesel fuel costs, above-average utility rate increases, and recovering real estate markets in most locales.
Container shipments are projected to increase tremendously at U.S. East Coast ports, creating inland warehouse opportunities (not unlike California's Inland Empire) for communities situated within a few hours' drive by truck from deepwater ports in Miami and Jacksonville, Fla.; Savannah, Ga.; Charleston, S.C.; Norfolk, Va.; Baltimore, Md.; Wilmington, Del.; Newark/Elizabeth, N.J.; and Boston, Mass.
To read the full article see The right site, at the right price.
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