Real Estate Forum - October 2014

recently got underway. State Farm is leasing 585,000 square feet in the transit-oriented development’s first office building.

“I see a real resurgence in true urban
density, a focus on transportation and
stores that are being built to ‘human
scale’ versus mass merchandisers,” says
Mike Cohn, regional president and co-
founder of Lennar Commercial. “I see a
focus on amenities to serve that growing
urban density, all of which makes for
more walkable and livable communities.”
Alex Carrick, chief economist at
Construction Market Data, says new com-
mercial construction projects in the
Southeast are largely stuck in neutral—
with one exception. He points to a clear
move toward mixed-use projects that com-
bine offices, retail space, condo residences
and even manufacturing facilities.

“Out of the 40 largest upcoming commercial construction projects in the Southeast, nearly half will be mixed-use facilities,” Carrick says. “Mixed-use projects provide a developer with a more stable source of revenue. A risk in one area, such hotel accommodation, can be offset by activity levels in another, such as retail.

Mixed-use projects can also widen the financing base. Lenders are reassured when borrowers have several different sources of earnings. All their eggs aren’t being placed in one basket.”

Dealing in Distressed Assets Distressed assets may be dwindling in the Southeast, but there are still deals to be done and there may be another wave just ahead. Indeed, much of the commercial real estate industry is bracing for the CBMS maturities coming due in 2015 through 2017. Nelwyn Inman, a shareholder at Baker Donaldson in Chattanooga, isn’t reassured by the decline in delinquencies in 2014 because she’s also witnessing many challenged borrowers.

We are
seeing
more
people
moving
away from
the Rust Belt and toward
areas like the Sunshine
State and Carolinas.”

CHARLES WILLIAMS KeyBank Real Estate Capital

The vast
majority
of new
apartment
construction
is urban
and high-end. There is
virtually no new apartment
supply being built for the
workforce.”

KEVIN FINKEL Resource Real Estate

Over $1.4 Trillion in Commercial Property & Loan Transactions

The Foundation of Online Commercial Real Estate Buying & Selling

Location: Morrow, GA Type: Warehouse Occupancy: Vacant Size: 60,000 sq. ft.

Location: Chattanooga, TN Type: Office Occupancy: Vacant Size: 3,127 sq. ft.

Location: Gardena, CA Type: Office Occupancy: 65.8% Size: 62,891 sq. ft.

Featured Recent Auction Closings

Accelerate your disposition strategy RCM Accelerated combines speed & certainty of close with the marketing automation, buyer exposure, document management, and real-time reporting of the industry leading RCM platform.