Wednesday, November 30, 2011

NAI Global Selects Hallmark Partners, Inc. to Expand Services in Jacksonville, FL

NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announced today it is expanding its coverage into Jacksonville, FL with the addition of Hallmark Partners, Inc. Hallmark Partners will continue to provide its clients with best-in-class services through a newly formed subsidiary, NAI Hallmark Partners, LLC, and will operate as NAI Hallmark Partners.
Since its inception in 1993, NAI Hallmark Partners has consistently been recognized as one of the leading full service commercial real estate development, leasing and management firms in Northeast Florida. The company’s services offerings include land brokerage, tenant representation, landlord advisory and build-to-suit services. NAI Hallmark Partners has received multiple industry awards and honors.
“We are pleased to announce this aggressive expansion of our commercial real estate services operations through our affiliation with NAI Global,” said NAI Hallmark Partners President Alex Coley. “We are excited to add a national and global platform for the comprehensive compliment of commercial real estate services. With this announcement, we are furthering our commitment to the Jacksonville community and the growing list of clients that make our firm the premier provider of real estate services in the Jacksonville area.”
“Hallmark Partners is one of Northwest Florida’s strongest real estate services firms and I am delighted that they are joining NAI as our Jacksonville area representative,” said NAI Global Executive Vice President David Blanchard. “We look forward to working together with Alex and the talented professionals of NAI Hallmark Partners in creating new opportunities for NAI clients around the world.”
NAI Hallmark Partners is located at 6675 Corporate Center Parkway, Suite 100, Jacksonville, FL 32216. Headquartered in Princeton, NJ, NAI Global manages a network of 350 offices and 5,000 professionals in 55 countries across the globe.

Monday, November 28, 2011

Despite Economic Uncertainty in U.S., NAR Predicts Commercial Real Estate Growth in 2012


According to the National Association of Realtors (NAR), commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012.

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.

Looking at commercial vacancy rates from the fourth quarter of this year to the fourth quarter of 2012, NAR forecasts vacancies to decline 0.6 percentage point in the office sector, 0.4 point in industrial real estate, 0.8 point in the retail sector and 0.7 percentage point in the multifamily rental market.

The Society of Industrial and Office Realtors, in its SIOR Commercial Real Estate Index, an attitudinal survey of 231 local market experts, shows the broad industrial and office markets were relatively flat in the third quarter, in step with macroeconomic trends.  The national economy continues to affect the sectors, with 92 percent of respondents reporting the economy is having a negative impact on their local market.

Even so, ...

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Earnings growth rate for the Consumer Discretionary sector boosted by retailers | FactSet Research Systems

Earnings growth rate for the Consumer Discretionary sector boosted by retailers | FactSet Research Systems

Monday, November 21, 2011

Triple-Net Triple Threat

Investors vie for the safety, convenience, and ROI of top net-leased deals.
by Sara Drummond
Looking for a rock-solid investment in a shifting economy?
Look no further than single-tenant net-leased properties. In markets where shopping centers sit empty and office buildings are dark, the lights are on (usually 24 hours) at the corner drugstore — provided it’s a Walgreens or a CVS. With their investment-grade credit ratings and penchant for long-term leases, these drugstore triple net-leased deals attract top dollar in almost every market.
But drugstores are only one of a stable of creditworthy tenants for net-leased deals, according to a recent anecdotal survey of CCIMs. Other tenants are also attracting buyers. CCIMs report that everyone from all-cash individual buyers in small towns to big-city real estate investment trusts are looking to add one, two, or 20 of these stable investments to their portfolios.


From every U.S. region, CCIMs report that the NNN supply is tight and the demand is high. “The entire state of California has more money than product,” says George L. Renz, CCIM, of Renz & Renz in Gilroy, Calif. He has the investors: His biggest challenge is finding deals with good intrinsic value that “truly reflect safety and truly reflect investor’s goals — most of which involve risk avoidance.”
In Atlanta, “I am seeing more out-of-town buyers from everywhere in the country and even international,” says Virginia I. Wright, CCIM, vice president of net-leased investments for Bull Realty. “With a strong lease, tenant, and location, they are satisfied without having to visit the property and just enjoy the rent checks. Many buyers would love portfolios of properties; however, these are more difficult to come by.”
Many of those portfolios are going to institutional investors that have turned their attention to net-leased product in the past few years. REITs, insurance companies, and pension funds have contacted CCIM brokers in smaller markets this year, looking for portfolio deals.

Money Is Available

One reason for the interest in net-leased deals is that financing is available at all levels. With most net-leased properties priced under $5 million, many single-asset purchasers buy with cash, according to the CCIM market round-up. “We have been doing transactions almost always with knowledgeable all-cash buyers who want to close swiftly,” says Rob Murdocca, CCIM, of Prescient Property Group in Wayne, Pa.
Len S. Jarrott, CCIM, of Jarrott & Co. in Santa Barbara, Calif., has completed ...
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Tuesday, November 15, 2011

NAI Rio Grande Valley Market Report 2011

By: Rey Anzaldua

As global companies look to expand or relocate within the United States many of their operations require a young labor force, easy access to international sea, air and cargo ports of entry, low cost of living, and access to development opportunities.  Hundreds of companies have taken a hard look at the Rio Grande Valley in south Texas.  Two nations, one region, many choices is the marketing slogan for Rio South Texas, which promotes all of the communities on both sides of the Rio Grande Valley Border with the principal cities of Brownsville, Harlingen and McAllen, Texas and Matamoros, Rio Bravo, and Reynosa, Mexico.

Commercial real estate has stabilized in the Rio Grande Valley after a series of down years.  This makes the market one of the best in the nation and according to Forbes Magazine, the McAllen MSA ranked 4th for best Mid Sized MSA for jobs while Bloomberg/Businessweek ranked the MSA 4th in cost of living nationally.  The Metropolitan Policy Program (MPP) at the Brookings Institution regularly lists the 20 strongest major metro areas in the U.S.  It looks at fundamental economic issues: economic activity, housing, and employment.  The McAllen MSA was ranked in the top 20 of the Strongest Metro Areas by the MPP.

The local colleges and universities (University of Texas Brownsville and Pan American, South Texas College, Texas Southmost and Texas State Technical College), continue their growth not only in students but in construction of new buildings and acquisitions of land to accommodate the enrollment growth and movement into research and development.

Dallas Federal Reserve recent data shows a slight increase in retail sales of 6%.  With several big box retail stores set to open late 2011 and early 2012 the stage is set for a continued increase in retail sales.  Bass Pro Shops will complete construction before the end of 2011 in Harlingen while in the McAllen MSA a Costco in Pharr will be completed in the spring of 2012.  

Healthcare and government agencies continue to dominate the office market.  Retail sales in 2010 in Hidalgo and Cameron counties reached $14.5 Billion dollars confirming that the Rio Grande Valley remains a very healthy retail market.

NAI Rio Grande Valley is a focused commercial real estate brokerage, consulting, development and syndication firm serving the Rio Grande Valley and based in McAllen, Texas. Our mission is to transform real estate opportunities into profits for owners, users and investors.

NAI Rio Grande Valley advises it's customers and clients on how to maximize the value of their assets and utilize real estate to their long term advantage through comprehensive and strategic planning, execution and management.

Monday, November 14, 2011

Texas is only exception to gloomy retail picture

New Mexico Business Weekly
Date: Friday, November 11, 2011, 8:41am MST - Last Modified: Friday, November 11, 2011, 12:13pm MST
Retail activity is fairly brisk in Houston and Austin -- and sluggish virtually everywhere else.
The two Texas markets are the only U.S. metropolitan areas that have added more than 1,000 jobs to their retail sectors since the beginning of the recession in 2007.
Two other Texas metros have managed to hold their own during that span. McAllen-Edinburg has picked up 300 retail jobs in four years, and El Paso has stayed flat.
The other 96 markets in the national top 100 have suffered declines in retail-trade employment during the past four years...
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Friday, November 11, 2011




The world’s biggest retailer seems to be putting out all the stops lately to adapt to a new retail environment. Earlier this year, Wal-Mart launched its small-format Express stores, meant to allow the chain to enter urban markets with high barriers to entry and compete with supermarkets and drug stores on their own turf. Now, Retail & Consumer reports the retailer has opened two pop-up stores, measuring 1,000 sq. ft. and 3,000 sq. ft. at the Topanga Mall in West Los Angeles and at Horton Plaza in San Diego.
Wal-Mart has been quietly working on this initiative for some time, according to The New York Post. In part, this is an attempt to compete with Toys ‘R’ Us’ pop-up Express stores during the holiday shopping season since Wal-Mart’s pop-up units will concentrate on toys and electronics and will operate through December 31.
At the same time, ...
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Thursday, November 10, 2011

Retail Demand Continues Steady Recovery, Some Pockets of Pain Persist - CoStar Group

Restaurant Growth Reported To Be Especially Strong, Power Centers Attracting Interest from Retailers, but Some in Market Question How Much Activity is Driven by Discounting
November 9, 2011
CoStar Group
With the holiday shopping season getting under way in earnest this month, recession-weary American consumers are setting aside their worries about stagnant U.S. employment, a soft housing picture and the debt crisis in Europe to go shopping. That's providing fuel for the slow-but-steady improvement in retail property fundamentals that has emerged in recent quarters.

Consumers rode out a slow-but-not-stalled economic expansion during the spring, and annualized GDP growth edged up in the third quarter, with lower interest rates beginning to have their intended effect -- encouraging purchases of durable goods like autos and stronger spending by consumers on home improvements, food and beverage and electronics, furniture and appliances, according to data presented at CoStar Group’s Third-Quarter 2011 Retail Review and Outlook.

"Retail spending started out with ‘needs’-based items like health care and general merchandise at Target and Wal-Mart, and it's now widened to include more of the ‘wants’ by consumers," said Senior Real Estate Strategist Suzanne Mulvee, who co-presented the quarterly review with Real Estate Economist Ryan McCullough.

Even as shopping centers and malls logged their ...

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Wednesday, November 2, 2011

FASB Lease Accounting Update: Will Lessors/Landlords be excluded?

Posted on Tue, Nov 01, 2011

Much has been written about the significant joint undertaking by FASB and IFRS to update lease accounting rules in the name of improved transparency. With real estate leases comprising a high percentage of all operating leases, the potential impact for the commercial real estate industry looms large, for landlords, tenants, brokers and property managers alike.
Tucson lease accountingAfter taking significant public comment on its exposure draft published in August 2010, FASB agreed to reconsider its proposed guidance. The primary aspect of the draft changes redefined all operating leases as right-of-use assets (capital leases), thereby moving accounting from the operating statement to the balance sheet. The volume and nature of comments has pushed final guidance back to 2012.
However, in a recent Project Update published on FASB's website, FASB indicated that the two bodies have "tentatively decided that a lessor’s lease of investment property would not be within the scope of the receivable and residual approach. Instead, for such leases the lessor should continue to recognize the underlying asset and recognize lease income over the lease term."
The International Council of Shopping Centers (ICSC) is one of several industry organizations advocating for the commercial real estate industry's interests with regard to proposed lease accounting changes. ICSC summarized the decision made at FASB/IFRS' last meeting in thisOctober 27, 2011 news report:

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Tuesday, November 1, 2011

Commercial Real Estate News - October 2011

Click here to view the October Commercial Real Estate News from NAI Rio Grande Valley.