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.
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