Movie Studio to Proposes to Build in Effingham County

Wow, the first update since January: I have been busy! To summarize this news...

Who: "The Effingham County Industrial Development Authority unanimously approved an agreement Tuesday with Medient Studios Inc. for a $90 million movie studio and entertainment facility..." writes G.G. Rigsby in the Savannah Morning News.

What: The Effingham County IDA approved a Memorandum of Understanding with Medient. The memorandum is a legal document, but not as fully binding as a contract. As I understand it, this deal is creeping toward the finish line, but not yet "a done deal." I don't think any of us has forgotten the Daimler-Chrysler Sprinter van plant drama back in 2002-2003 which was presumed to be a sure thing.


When: WTOC reports that "Medient Studios has plans to open as early as next year."

Where:

Picture courtesy of Effingham County IDA. Click to Enlarge

How much: "The $90 million figure includes $10 million for land, $40 million for equipment and $40 million for buildings. An investment of $90 million and 1,000 jobs are the performance goals called for in the memorandum of understanding. Kumaran said he expects more than 1,200 jobs to be created eventually" writes G.G. Rigsby in the Savannah Morning News.

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

Commercial Real Estate: A slow grinding path

Atlanta Business Chronicle by Michael Bull, Bull Realty

Date: Friday, February 10, 2012, 2:08pm

Summary: Each major commercial U.S. real estate sector is expected to improve given that: job growth continues, the European debt crises are resolved and the presidential election doesn't scare investors.

Key Quotes:
Apartments should be the strongest asset class this year.

The national industrial market has experienced seven consecutive quarters of positive net absorption, and the sector will again experience improved fundamentals in 2012, as some corporations bring manufacturing back to the U.S. and the Panama Canal is widened. Note that Savannah will not immediately benefit from a wider Panama Canal.

Unlike past downturns, the CBD markets are rebounding better than their suburban counterparts. In particular, medical office properties will continue to be a favored asset class. See also A prescription for Atlanta commercial real estate investment (and Savannah).

The retail market was hit hard by the recession, but is getting back on its feet.

Read the full article at: Commercial Real Estate: A slow grinding path

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

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:

• 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.

Key Quotes:
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.

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

Mitsubishi Heavy plans Savannah, Ga., rotor plant

Dec. 14, 2011, 4:54 a.m. EST

By Mari Iwata

TOKYO (MarketWatch) -- Mitsubishi Heavy Industries Ltd. said Wednesday it will build a plant to produce rotors, a core component of gas turbines, at its facility near Savannah, Georgia, to take advantage of rising demand for gas-fired power plants in the U.S. and to dodge the impact of the strong yen. The company will begin construction of the new facility in the second quarter of 2012.

With the completion of the rotor production facility, slated for the third quarter of 2013, Mitsubishi Heavy will able to produce 12 units a year of gas turbine combined-cycle power generation systems at the Savannah plant without importing any major parts from Japan, a company spokesman said.

Mitsubishi Heavy expects rising demand for gas turbine combined-cycle power generation systems in the U.S. as a large number of coal-fired power plants are reaching the end of their operational lives, while advancements in extraction technology have lowered prices of natural gas to levels that can compete with coal.

Read the original article at Mitsubishi Heavy plans Savannah, Ga., rotor plant

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