Proponents of a major mixed-use, transit-oriented development immediately west of SkyTrains Braid Station in New Westminster have returned to the municipal government with a significantly larger proposal that includes a significant additional infusion of rental housing.

Last week, New Westminster city council advanced the public consultation process for the revised master plan in support of the rezoning application for Sapperton Green at 97 Braid Street on a 38-acre industrial site currently occupied by a 650,000-sq-ft Amazon fulfillment centre,and former warehouse buildings that now contain Extreme Air Park and Futbol 5 Indoor Soccer.

The southernmost parcel of the property is a satellite parking lot for Royal Columbian Hospital staff, and to the north the site is framed by the Central Valley Greenway and the Brunette River. There is also direct access to the Trans Canada Highway via the Brunette Avenue interchange.

Site of Sapperton Green at 97 Braid Street, New Westminster. The property is largely occupied by an Amazon fulfillment centre. (Musson Cattell Mackey Partnership / QuadReal Properties)

Planning for the redevelopment began in 2011, when it was managed by commercial developer Bentall Kennedy on behalf of the propertys owner, the British Columbia Investment Management Corporation (BCIMC).

But QuadReal Properties took over management of the project in 2017, when it took over Bentall Kennedys BCIMC portfolio and submitted the first iteration of the application. The architectural firm for the project isMusson Cattell Mackey Partnership.

The new revision increases the projects market residential floor area from 3.4 million sq. ft. to 4.2 million sq. ft. an increase of 800,000 sq. ft. About 1.2 million sq. ft. of this market residential floor area will be set aside by secured market rental housing.

This increased density will be accommodated by additional heights for the residential towers and an additional 26-storey residential building.

February 2020 proposed phasing plan of Sapperton Green at 97 Braid Street, New Westminster. (Musson Cattell Mackey Partnership / QuadReal Properties)

There will also be 255,000 sq. ft. of affordable rental housing, between 750,000 sq. ft. and 1.5 million sq. ft. of office space, and between 100,000 and 150,000 sq. ft. of retail space.

Changes to the proposal are consistent with the citys new Inclusionary Housing Policy, which focuses on catalyzing non-market rental homes.

The office component of the project is significant for New Westminster, given that its scale would increase the citys office supply by between 37.5% and 75%, depending on the option chosen.

The projects residential uses are largely located on the northwest half of the site, while retail and office space are oriented on the southeast half, closest to the SkyTrain station and bus exchange. The tallest buildings are generally located on the northern half and core of the property, as well as next to the transit hub.

Retail and restaurant uses will line the street along the northern foot of Rosseau Street on the property, and the Transit Way leading to the bus exchange.

A 35,000-sq-ft community centre with a childcare facility is located next to a 2.4-acre central public park.

February 2020 proposed site plan of Sapperton Green at 97 Braid Street, New Westminster. (Musson Cattell Mackey Partnership / QuadReal Properties)

A pair of plazas are planned, and the Central Greenway will be rerouted through a new greenway and open space going through the core of the site.

The entire project calls for eight acres of green and open spaces, parks, and plazas, including dedicating 3.5 acres for riparian area improvements, particularly along the propertys northern edge with the river.

With city councils latest decision, public consultation will be held from Spring to Fall 2020, with an aim to finalize the master plan by the end of this year.

If the master plan is approved, the entire redevelopment will be built in three phases, with each phase comprised of 85,000 sq. ft. of affordable rental housing. Construction on the affordable housing component of the first phase could begin in 2021, providing 110 units within a six-storey building.

The first phase will develop the southernmost parcel of the site. Amazons 2012-opened facility on the site will not be affected until construction of the second phase begins. Two other Amazon fulfillment centres serving Metro Vancouver are located in Delta.

QuadReal Properties is also behind the redevelopments of the old Canada Post building and Oakridge Centre in Vancouver.

February 2020 artistic rendering of Sapperton Green at 97 Braid Street, New Westminster. (Musson Cattell Mackey Partnership / QuadReal Properties)

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Massive redevelopment proposed to replace Amazon warehouse in New Westminster | Urbanized - Daily Hive

AN ART DECO-compatible, 42-story, high-rise is planned to break ground in 2021 at 5411 Wilshire Blvd. at Cochran Ave.

After years of construction, the Miracle Mile is breathing a collective sigh of relief.

But not for long. While much has been built in recent years, theres much more development coming down the pike.

This planning stuff has consumed us for five, 10 years, said Miracle Mile Residential Association (MMRA) President Jim OSullivan.

These big things seem to be sprouting up all over the place. It seems like everyday something new comes up.

The Mile is about to see its tallest development yet if all goes according to plan.

A 42-story luxury high-rise is planned at the Staples office supply store site at Wilshire Blvd. and Cochran Ave.

CIRCA 1939. The Sontag Drug Store on the northwest corner of Wilshire and Cloverdale avenues, today is the site of Wilshire Beauty Supply; it will remain as part of the new skyscraper plans.Courtesy of Miraclemilela.com

Developer Wally Marks, whose family owns the property, plans to reveal up-to-date details about the project this month.

Meetings have already been held with some members of the community, and the projects size has been reduced with good results.

I think its a better project, Marks told us.

Earlier reports detailed 371 apartments, including 56 low-income units, in project architect Richard Keatings design. It blends the new a robotic parking system and yoga studio with the old an Art Deco-compatable design to reflect the areas origins, and the single-story Wilshire Beauty Supply, built in 1930 as a Sontag Drug Store, whose faade will remain.

Marks expects to break ground at the end of 2021, with an opening in 2023, the same year as the debut of the Purple Lines Wilshire and La Brea subway station.

The Wally Marks project on Wilshire will be a class act, said OSullivan.

Marks, developer and owner of the renovated Helms Bakery District retail site in Culver City, and developer Jerry Snyder (who built the Wilshire Courtyard) are known for quality projects, OSullivan commented.

THE RESIDENCES at Wilshire Curson, 285 new apartments in a 20-story building, has topped out, half-way between Sixth St. and Wilshire Blvd.

JH Snyder Company and partner OGO Associates are constructing a 20-story apartment building boasting panoramic views and a rooftop resort pool.

The building has already topped out. To be called The Residences at Wilshire Curson, the project includes 285 apartments in the MVE+Partners design that rises next to the SAG-AFTRA Plaza and across Curson from the Los Angeles County La Brea Tar Pits. The development includes subterranean parking. Opening date is early 2021.

RENDERING shows CGI Strategies proposed mixed-use development on La Brea Ave., adjacent to the subway station.

CGI Strategies plans a hotel / apartment / commercial-use building for the site just north of Wilshire Blvd. on La Brea Ave., right next to a subway station entrance.

The eight-story complex includes 121 apartments and 125 hotel rooms and 13,037 square feet of commercial / restaurant / retail space. The Morris Adjmi Architects design includes two pools on the top floor and has two levels of subterranean parking.

The 210,123-square-foot development is still in the midst of the entitlement process. But things are moving forward nicely, project spokesperson Bruce Beck of DB&R Marketing Communications told us.

But the project has hit some roadblocks.

Its been postponed indefinitely, OSullivan told us. Theyre getting a lot of pushback from neighbors and businesses opposing the added traffic the project would bring to the congested area.

The project will be separated by an alley from the Purple Line subway station. It will back up to residential parking garages on Detroit St., which is already a problem for traffic, say neighbors.

On the plus side, We are going to need a hotel when all the museums open up, and the project will provide living-wage jobs, says OSullivan.

But as it is, it is too ambitious. Theyre going to have to go back to the drawing board.

TOM BERGINS STAYS PUT and a new eight-story, 209-unit residential development is proposed next door.

An eight-story, 209-unit development and 2,500 square feet of commercial space is proposed at 800 to 840 S. Fairfax Ave., at the corner of Eighth St. To the south of the proposed new buildings, the project includes a landscaped plaza on the site of the parking lot at Tom Bergins Bar & Restaurant.

The favorite neighborhood pub will remain. It was declared a Historic-Cultural Monument in June; its parking lot was excluded from the designation.

Applicant Christopher Clifford of Las Vegas Colliers International has filed for an entitlement application with Los Angeles City Planning.

According to city documents, the residential units would be over three levels of garage and commercial space, and there will be underground restaurant parking to replace Bergins present surface parking.

Two existing two-story buildings that contain 40 rent-stabilized units would be demolished. The new development would provide 28 units of extremely low-income housing in exchange for a density bonus, reduced parking and increased floor area, among other benefits.

The MMRA has come out against the project, and the association is in contact with the tenant union that has recently formed, OSullivan told us.

The project design by Reed Architectural Group is among those seeking to benefit from the citys Transit Oriented Communities incentives designed to create more affordable housing. The project is one block from the purple Line Fairfax subway station.

These new developments, if approved, will join recently opened apartment buildings, including The Mansfield, The Avalon, Wilshire La Brea and 5600 Wilshire.

Tags: Miracle Mile Residential Association, MMRA, Sontag, Tallest skyscraper, Wally Marks, Walter N. Marks

Category: Real Estate

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Development in the Mile continues with mostly luxury high rises - Larchmont Chronicle

The global daylight market is expected to grow at a CAGR of over 6% during the period 20192025

New York, March 04, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Daylight Market - Global Outlook and Forecast 2020-2025" - https://www.reportlinker.com/p05868636/?utm_source=GNW Moreover, inspired by installation in new buildings as well as renovation and replacement of existing structures. Daylight systems are used in both residential and commercial facilities, including retail, hospitality, hospitals, educational institutes, government institutes, warehouses, and other industrial facilities.

The increase in green buildings is one of the major drivers for the growth of the daylighting market. Green buildings are known as sustainable and high-performance buildings. These buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by efficiently reducing the use of energy, water, and other resources, protecting the health of the residents, and improving the productivity of employees. Daylight systems are considered an effective way in which a building can meet its sustainable standards, as they can provide an abundance of natural light, which reduces or eliminates the need for electric lighting during the daytime. Further, the rising demand for renewable energy is driving the use of photovoltaic systems. Building-integrated photovoltaic technology (BIPV) can provide aesthetical, economical, and technological solutions for electric self-sufficiency in buildings. It is the most promising technology for harvesting solar energy in urban areas. It offers multiple benefits for buildings, including power generation from renewable energy resources, daylighting solutions, heating and cooling load reduction, and others.

The following factors are likely to contribute to the growth of the daylighting market during the forecast period: Growth of Green Building Activities Sustainability Reshaping Global Construction Market Regulation on Energy Efficiency Driving Skylight Demand Growing Demand for Tubular Skylights

The study considers the present scenario of the daylighting market and its market dynamics for the period 2019?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent companies operating in the market.

Daylight Market: Segmentation

This research report includes a detailed segmentation by products, end-user, installation, and geography. The increase in spending on new office and commercial buildings in China and the growth of residential construction in the US are key contributors to the window segment. The US and China are expected to drive the global demand for windows during the forecast period. The new residential construction will account for the majority of the demand in the coming years.

The rapidly developing infrastructure and construction output in emerging markets are driving the global skylight market. Infrastructural development, renovations, and remodeling of existing commercial and residential buildings would support the growth of the segment. In mature regions such as North America and Europe, growth is mainly driven by product innovations. However, the high installation cost of skylights is a primary challenge for growth during the forecast period.

Curtain or window walls are a popular choice among architects as they allow maximum lights in the building. The primary benefit of curtain walls is they allow natural light into the interior space, reducing the need for artificial lighting, hence reducing electric bills. Further, these curtain walls are airtight and can prevent rain or moisture intrusion. However, maintenance of curtain walls is one of the primary challenges for the growth as they generally require professional expertise.

The rise in renovation activities and growth of commercial properties in major markets, including the US, Canada, China, Brazil, Germany, the UK, Australia, Hong Kong, Japan, and Singapore, are driving the commercial daylight segment. Increasing government regulations and active policies to reduce energy consumption in commercial buildings are boosting demand. Further, active renovation policies are also contributing to growth. A similar trend has also been observed in North American countries where manufacturers are increasingly focusing on environmental sustainability and green building construction. The growing replacement demand for windows and skylights in residential buildings to improve energy efficiency is primarily responsible for the growth of residential daylights. Although construction and expansion of residential units will drive the market, a majority of the demand will be generated from house renovation projects. Modern house decors demand improved aesthetics, which would drive the demand for products such as skylights and curtain walls.

One of the major causes of replacement demand is increasing awareness of energy efficiency among buildings and residential houses. Innovations in energy efficiency are considered a critical tool to fight climate change and deliver major benefits to the people. Homeowners undertake improvement to make residential properties comfortable, upgrade air conditioning and heating systems, waterproof roofs and basements, soundproof rooms, and extend their homes and boost energy savings. Further, the growing demand for photovoltaic, smart, and electric daylight systems is driving replacement demand in both commercial and professional sectors.

The construction sector accounts for approximately 39% of the global C02 emission. Thus, the construction industry is one of the least sustainable industries in the world. As part of the worldwide effort to avert a climate crisis, the urban population requires to evolve away from their reliance on concrete. Several property firms and architects are thus committed to making their buildings zero carbon by 2030. The construction industry is increasingly shifting toward sustainable methods and green architecture, thereby giving rise to innovative designs. The growth of sustainability in construction is driving the market for daylight systems. About 51% of the global construction projects in the next three years are estimated to be sustainable ones. Thus, the rapidly growing construction market in both commercial and residential sectors is expected to increase demand for daylights during the forecast period.

Market Segmentation by Product Windows Skylights Curtain WallsMarket Segmentation by End-user Commercial ResidentialMarket Segmentation by Installation Replacement Demand New Construction

Insights by Geography

In mature regions such as North America and Europe, growth is mainly driven by product innovations. In emerging regions, the rapidly developing infrastructure and construction output are contributing to the growth of the global daylight market. Strong economic growth, coupled with rising construction activities and increasing disposable income, has primarily supported the growth in the APAC region. India, China, Australia, South Korea, and Japan have mainly driven the growth in the region.

The European market is driven by the growth in installation in new buildings as well as high demand from renovations and retrofit activities. The European construction growth is broad-based and will to take place across sectors, including residential, non-residential, and civil engineering, for both new construction and renovation activities, thereby driving the growth of the daylighting market in the region.Strong economic growth, the establishment of new businesses, company expansions, and increased construction activities are mainly driving the demand for daylight in the North America region. Despite strong economic growth, the construction output is declining in the US; however, the declining construction output is being supplemented by higher production in Canada. The residential construction experienced the sharpest decline; in contrast, commercial construction witnessed strong growth in recent years.The fast-growing construction and infrastructural development sector in MEA is driving the market for daylight. Some of the major construction projects in the region include the Strategic Plan of 2021, the Energy Strategy of 2050, Sheikh Zayed Housing Program, Dubai Tourism Strategy, and the National Strategy for Higher Education 2030. The UAE leads the construction industry output in the region and is also one of the most potential markets for daylight in the region. The residential sector accounts for the highest demand for daylights in Latin America. The rise in residential, commercial, and infrastructural construction output in Brazil and Mexico is driving the growth of the market.

Market Segmentation by Geography Europeo UKo Franceo Spaino Italyo Germany APACo Chinao Japano Indiao Australia North Americao USo Canada Latin Americao Brazilo Mexico MEAo UAEo Saudi Arabia

Insights by Vendors

The global daylight market is highly competitive, with the presence of a large number of public and private companies. These vendors typically compete on key parameters such as product design, quality, reliability, support services, and price. Rapid technological advancements are adversely impacting the vendors as consumers are expecting continuous innovations and upgrades of products. The present scenario is driving vendors to alter and refine their unique value proposition to achieve a strong market presence.

Key Vendors VKR Group Anderson JELD-WENOther Vendors Kingspan Light + Air Fakro Sun-Tek Skylights Onyx Solar Group Skyview Skylight Sunoptics Skydome Skylights Lamilux Heinrich Strunz Group Colombia Skylights CrystaLite Inc. Solatube International Daylight America Atrium Windows and Doors Weather Shield Airclos IQ Glass NorDan Arbonia Aluplast Josko Reynaers Aluminium

Key Market InsightsThe analysis of the global daylight market provides sizing and growth opportunities for the forecast period 20202025. Provides comprehensive insights on the latest industry trends, forecast, and growth drivers in the market. Includes a detailed analysis of growth drivers, challenges, and investment opportunities. Delivers a complete overview of segments and the regional outlook of the daylight market. Offers an exhaustive summary of the vendor landscape, competitive analysis, and key strategies to gain competitive advantage.Read the full report: https://www.reportlinker.com/p05868636/?utm_source=GNW

About ReportlinkerReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

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The global daylight market is expected to grow at a CAGR of over 6% during the period 2019-2025 - EnerCom Inc.

ROUND ROCK Sometime in the next 18 months, Leander is going to have a downtown square to host concerts, festivals, movies in the park, farmers markets and other events, said a developer.

It will be part of a 115-acre, mixed-use project called Northline that will begin construction next week, said Alex Tynberg, the projects developer.

Northline, which will be between Austin Community Colleges San Gabriel campus and St. Davids Hospital, will include shopping, dining, entertainment, apartments, a hotel, offices and townhomes. The project is about of a mile from the Capital Metro rail line stop.

"This could provide a new downtown for Leander," said Mayor Troy Hill.

Leander also may consider building a new City Hall at Northline, Hill said, but that decision would have to be approved by voters.

The city of more than 60,000 residents has very little restaurant or retail development, and most people go to Cedar Park to shop, officials have said.

"Every town is wanting to do their own version of the Domain," Hill said. "What makes ours (Northline) different is that we have the transportation hub right here.

People from Austin can ride the MetroRail to get to entertainment at Northline, he said.

Tynberg said it will be "a super friendly family destination."

"It will be akin to a downtown where you have all the offerings of a downtown district."

Tynberg said the first phase of construction, estimated to last 18 months and scheduled to begin March 4, will include infrastructure such as roads and utilities, as well as a town square, 350 apartments, a few office buildings and some kind of entertainment, including an opportunity for movie theaters. It is estimated to be completed in September 2021.

The town square will include a stage, a green space, a pavilion, a childrens play area with a water feature and plenty of benches, he said. The goal is to "really make it a heartbeat hub for the entire community," Tynberg said.

When the project is built out over the next 10 years, it is planned to have 300,000 square feet of retail space, more than 700,000 square feet of office space, 150,000 square feet of hotel space, 2,000 apartments and 300 townhomes.

The city is providing $9.54 million to pay for infrastructure, including streets, utilities and parks for the first phase of the project, said spokesman Mike Neu. Northline Leander Development Company is paying $3.87 million for phase one infrastructure, he said.

The city also has a development agreement that Leander will be reimbursed for the infrastructure costs up to $15 million through a tax increment reinvestment zone, he said. Northline Leander Development Company also will be reimbursed through the zone for infrastructure costs up to $12.5 million.

Tynberg declined to say how much the entire project would cost. The city said in a news release last year that it could be worth an estimated $800 million.

The annual property tax revenue could equal about $4.3 million based on the citys current tax rate of 54.1 cents per $100 valuation when the project is finished, the release said.

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Construction to start on town square project in Leander - Austin American-Statesman

Audrey Cooney acooney@wickedlocal.com

MondayFeb24,2020at3:36PMFeb24,2020at3:36PM

HANOVER The Patriot Cinemas behind the Hanover Mall will remain open during demolition and construction at the mall site, according to a representative from the movie theater company.

Ultimately, the movie theater will be demolished to make way for 297 apartments and townhouses planned as part of Hanover Crossing, a development project slated for the current site of the mall and theater. The property on Washington Street currently occupied by the empty mall will be the site of the open-air retail and entertainment space. Market Basket, a movie theater and two restaurants have already signed on to be part of the new development.

The mall is now closed, and demolition there is set to begin soon. In the meantime, the empty building served as a training ground for local firefighters.

Lloyd Sova, vice president of development for project developer PREP Property Group Inc., said last fall that development at the current mall site will likely be completed in February 2021 and that businesses will open the following month. Demolition for the residential units, which cannot begin until the commercial space is finished because of the areas waste water system, is set to begin in April 2021, he said. Construction of the residential development is planned to finish in November of 2022.

Several other businesses on the outskirts of the mall property will stay open during construction, and continue to operate once Hanover Crossing is complete.

Follow Audrey Cooney on Twitter at @Audrey__Cooney.

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Patriot Cinemas will stay open during Hanover Mall construction - Wicked Local Hanover

By TED CARTER

Tenants of metro Jacksons suburban office market are expected to begin filling up space at a pace that exceeds new vacancies, an outcome the market failed to achieve two of the past three years.

Credit a 10-year slowdown in new office construction for increased prospects that net absorption will move into a positive range and stay there for at least a few years, Integra Realty Resources Inc. said in its 2020 Viewpoint report on the metro and Central Business District office markets. The two markets began the previous decade with an inventory of 26.1 million square feet and ended it at 26.9 million square feet. A recent slide into negative net absorption began in 2017 with 185,243 square feet left vacant and another 96,678 square feet remaining empty in 2018, Integra Realty Resources market survey found.

Absorption is the difference between vacantspacein a previous tracking period and the current available space.

A rebound to 145,506 square feet into positive absorption occurred last year but Integra sees negative absorption of 17,707 square feet for 2020. That should be the last venture into the negative range for at least the next four years, though none of the annual positive absorptions totals is expected to rise above 50,000 square feet, Integra said.

Ahead for the suburban market are decreasing vacancy and stabilized leasing rates, the report says. By contrast, the stagnation that has marked downtown Jacksons occupancies and lease rates for the last decade is expected to remain, Integra Realty Resources said.

The recovery of the suburban office market has been spurred along by a significant reduction in the number of new office buildings constructed since 2009, reported Integra, a national commercial real estate valuation and consulting firm with an office in Ridgeland.

On the negative side, metro Jacksons Central Business District remains in the third phase of a recession, said Integra, citing a failure of downtown Jackson to edge up either occupancies or lease rates.

Addressing the flexible warehouse and industrial market, Integras 2020 Viewpoint predicts the new distribution and supplier facilities built in support of Hinds Countys $1.5 billion-plus Continental Tire plant will make up most of the new supply of industrial space over the next 12 to 24 months.

Integra noted it has seen enough revived growth in the industrial sector to say the first phase of an expansion is under way.

Positive absorption is continuing, and lease rates have remained stable, Integra said in its annual market survey report.

Fewer Vacancies, More Options

Just how positive is absorption for Class A office space?

The last decade closed with The District at Eastovers newly constructed five-floor, 120,000 square-foot multi-tenant office property with adjoining garage building 100 percent leased, Integras report noted.

A proposed 95,000 square-foot building just east of the Highland Colony Parkway is 90 percent pre-leased.

In the meantime, strong market prospects have led developers to propose a 40,000 square-foot multi-tenant building with a parking garage in Ridgeland along Highland Colony.

In addition, Highland Colony is set to gain several new office buildings at its intersection with Mississippi Highway 463.

New supply will keep lease rates stable as occupancy rates are controlled by new supply, the Integra report said.

As strong as absorption rates are expected to become, Integras 2020 forecast is for an 8.1 percent vacancy rate for metro office space. But after 2020s negative net absorption, the metro market wont see negative territory for at least the next three years, according to Integra.

Net absorption is forecast to grow positive by 9,159 square feet by the final quarter of 2021, Integra says.

The positive absorption is projected to continue through 2024, with tenants leasing 20,615 square feet above new vacancies in the fourth quarter of 2022; 24, 260 in 2023; and 32,732 in the final year of the forecast.

Those projections show strong improvement for the metro market from the start of the previous decade and the accompanying pain of the Great Recession. The fourth quarter of 2010 ended with 262,613 square feet of product above net absorption, a circumstance that led to a drop of 5.47 percent in asking rents and 10 percent vacancy rate.

Rebounds for absorption began the following year and continued through 2016. Whopping net absorption of 527,197 square feet occurred in 2014. The next years net absorption totaled 308,053 square feet, according to Integra.

Absorption went negative in 2017 and 2018, with 185,247 square feet left vacant in 17 and 96,678 square feet in 18. The market returned to positive absorption in 2019, with 145,506 square feet absorbed above new vacancy inventory.

Today, the suburban market for Class A office closely parallels the rest of the South and nation, with landlords getting an average of $27 a square foot, compared to $26 for the region and $28 for the nation. Metro Jacksons suburban Class B office space rents of an average $19 a square foot fall slightly behind the region, $20; and nation, $21.70.

Metro suburban capitalization rates a measurement of risks in a deal derived as a ratio between net operating income and the value of the retail property average 7.5 percent for Class A and 9 percent for Class B, surpassing both the region and nation in both categories.

Meanwhile, the 8.3 percent cap rates for Central Business District Class A space significantly surpass a cap rate of 6.7 percent for the South and nation.

However, Class A and B asking rents for the CBD are well below the region and nation at $20 and $15, respectively.

So are the CBDs vacancy rates of 26.8 percent for Class A and B. CBDs in the region show vacancy rates of 15.2 percent and 15.8 percent for the nation.

Tenant Shuffles

Meanwhile, net office space absorption may increase, but commercial real estate broker Micah McCollough attributes that mostly to tenants shuffling around the metros 26.9 million square feet of office space, a recent example being Horne CPAs exchanging of 80,000 square feet at the Butler Snow building in Ridgeland for 60,000 square feet of a 90,000 square-foot building it built nearby.

And, he said, its not like office jobs are growing on trees to create demand for more space. Nor is it a plus for landlords that the average space devoted to each office worker has dropped from 300 square feet to 200 square feet, noted McCollough, vice president and associate broker at NAI UCR Properties in Jackson.

Its a tenants market and probably will always be until we can find a way to produce new office-producing jobs, he said.

As well as the Class A market is doing, said McCollough, it is hard to make money in a locality with low-to-no rental rate growth and rising construction costs.

With leverage belonging to tenants, the term as is is seldom heard in lease negotiations, the broker added, and lamented that landlords continue to have to invest $30 to $40 a square-foot in tenant space every five years. Its really hard to make money, at the end of the day, he said, and added:

If there was never another office building built in Jackson, it would probably be fine.

Like McCollough, Jackson commercial real estate broker Scott Overby sees a suburban and CBD office market dominated by a lot of moving around, not new product. Were just moving pieces of the pie around instead of growing it, said Overby, principal of The Overby Company.

Overby said the musical chairs in which tenants are engaged makes sense for them. Long-term tenants dont like the disruptions of renovating while still in the space. They also follow a natural tendency to want new quarters after 10 to 15 years. You ask, Where is the next location we can go?

They typically find new landlords willing to do the work to make things ready for a move-in, Overby said.

Some Activity for Industrial

Flex warehouse has been a slumbering workhorse but is showing signs of responding to a wake-up call, Integra Realty Resources said in the 2020 Viewpoint. Steady new construction of flex buildings and the attractiveness of their office and warehouse options led to the Viewpoints faith in a recovery, Integra said.

James Jim O. Turner II, a managing director at Integra, put the growth in flex space south of Pearl and north of Ridgeland. But the industrial-dominated southern end of U.S. 49 from Jackson to Florence will need relief from prolonged highway work before it can expand, he said.

The upside is that the multi new highway lanes near Florence should give better access to the flex properties and could help spur tenant growth and new construction. Florence and Richland should see a revival in their flex markets, Turner said.

Add retail and commercial to the growth mix, he advised, and cited strong school districts and easier access between interstate highways and U.S. 49 as reasons why. Once it is easier to access employment centers, growth in all sectors will follow, Turner said, reflecting on the impact of new large employers such as Continental Tire, which recently began operations on a mega-site off Interstate 20 east of Clinton with a workforce of about 3,000.

Continentals impact on industrial real estate will be significant, said MCollough, the associate broker at NAI UCR Properties. But he said he has received reports that Continental wont have the kind of economic ripple effects in east and south Hinds County that Nissan brought northern Madison County. Making tires for commercial trucks doesnt require the lengthy list of suppliers and contractors that automobile manufacturing does, McCollough noted.

A similar expectation comes from Overby, the Overby Company principal. I personally havent seen a huge spurt in growth, he said.

But Continentals presence will have a positive impact by showing other industrial-space users we have an employment base for manufacturers and are a good bet for investors, Overby said.

The broker said hes getting strong leasing from flex warehouses around Brandon and Gluckstadt and some sections of Jackson. Building owners like the ease of modifying the properties for different uses, Overby said.

No owner is shackled to one kind of use when a tenant leaves, he said, and noted he recently worked with an owner who easily converted space into a martial arts studio after an HVAC company moved out.

While Overby said he thinks the industrial market can accommodate new buildings of 25,000 to 35,000 square feet, McCollough said returns on rents must improve first.

There is still probably a $2 a square-foot-to-$3 a square-foot difference in what new construction would cost versus if you can find existing product that would work for a user, McCollough said.

That trend could change over the next three years or so, he said, as e-commerce fulfillment continues to become more prevalent in Jackson and supply continues to become more and more restrained.

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Suburban office space absorption headed for positive range; industrial in expansion mode | - Mississippi Business Journal

The mixed-use development on the Wilmington riverfront has been more than four years in the making

WILMINGTON Nearly two years after construction began, the finish line is finally coming into view for River Place on the downtown riverfront.

East West Partners, the developer of the $83 million mixed-use project, will begin to roll out the first of the 92 condominiums to residents starting in March, with more than 90 percent of the units already pre-leased.

Leasing has also begun on The Overlook at River Place, the northern tower of the project, which will include 79 apartments available in studio and one or two-bedroom layouts. Depending on the floorplan, the apartments will range in size from 553 square feet to 1,284 square feet.

The Overlook will begin welcoming tenants in May.

The developer has also unveiled its Overlook residents-only amenities deck, which includes a rooftop pool, fitness center and bar.

Beyond the residential units, River Place will also offer publicly accessible retail spaces including street-level tenants like Mellow Mushroom and Axis Fitness, both of which have entrances at the corner of Water and Chestnut streets.

On the third floor, Circa Restaurant owner Ash Aziz will open his latest eatery with a menu featuring seafood and steak.

The commercial tenants have already been handed the keys to begin outfitting their spaces, which should open starting in May.

Last week, crews completed laying a multi-level staircase that will connect Front Streets soon-to-be-renovated Bijou Park with Water Street, offering guests a new entry point down to the riverfront through River Places property.

In conjunction with the opening of the first wave of condos, the parking deck built on the interior of the property will also open to vehicles. The six-floor deck will include both public and private spaces.

Project manager McKay Siegel with East West Partners said the current timeline has the project being completed by the summer.

Reporter Hunter Ingram can be reached at 910-343-2327 or Hunter.Ingraqm@StarNewsOnline.com.

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River Place to welcome first residents in March - StarNewsOnline.com

This 2019 rendering of Bear Development's Frame Park Commons apartments details what one of the two buildings, along White Rock Avenue and Moreland Boulevard, will look like once it's done. Construction has begun on the two-piece site, which straddles White Rock and includes the former site of Fracaro's bowling lanes.(Photo: JLA Architects/Bear Development)

WAUKESHA - If you're looking for a new apartment, you may not have to look much further than Waukesha in the next few years.

According to the city, people are indeed looking.

In successive fashion in January and early February alone, the city set the stage for the development of two high-density-oriented plans on its south side, pending more-detailed plans that are expected to follow soon.

A third proposal, downtown near Waukesha State Bank, has already advanced through a key financing stage, though construction has not yet begun.

And a fourth development proposal, involving another group of apartments near Frame Park at the what has been called the "gateway"of the city, has reached the construction stage.

Together, they represent a total of 500new apartments in the city, on top of the older rental housing stock that already exists.

Though that seems like a lot of apartments, city officials suggest the opposite is true, saying that the plans and proposals largely fill a need that was identified in a 2018 housing survey.

"When evaluating new housing projects we look carefully at the citys recently completed housing study to make sure they are filling gaps in our housing supply," said Jennifer Andrews, Waukesha's community development director. "The housing study showed a significant existing shortage of housing.The study identified a need for several different types of housing at varying price points. All of the residential projects fill a need identified in the study."

Here's a summary of what's in the works for the not-so-distant future.

On Feb. 4, the Waukesha Common Council approved a term sheet for a prospective tax increment financing district that would incentivize a mixed-use development called River Valley, primarily focused on upscale apartments on the southeast corner of Saylesville Road and Les Paul Parkway.

Parkway LLC wants to build a complex of 170 apartments with rents ranging fromabout $800 to $1,650 per month and in size from 550-square-foot efficiencies to 1,500-square-foot, three-bedroom apartments beginning as soon as this fall.

The preliminary site plan for Parkway LLC's River Valley Apartments shows L-shaped apartment buildings, plus a pair of outlots that could be used for commercial development. The 30-acre parcel is located on the southside of the junction of Saylesville Road and Les Paul Parkway.(Photo: Legistar)

In a memo to the city's elected leaders, Andrews noted the appealing elements the developer wants to build into the plan.

"Similar to other residential communities by this developer, their goal is to create a destination community in which people may live and recreate," Andrews wrote. "To that end, the community will have a strong amenity package including a clubhouse, pool, fitness center, hiking trails, playground, and other amenities designed to enhance resident experience."

While aldermen supported the proposed financial terms, on an 11-3 vote, the deal isn't done yet. Because the development would use new tax dollars generated by the improvements, the other taxing jurisdictions must approve the arrangement first.

At issue is whether the majority of the tax jurisdictions the city, Waukesha County, the school district and Waukesha County Technical College plus one at-large member agrees that the project is absolutely dependenton the use of $6.8 million in diverted tax dollars to pay for certain development costs.

On Jan. 22, the city's plan commissionbacked a proposal for a tax incremental financing district that's key to the redevelopment of the original portion of theFox Run Shopping Center along St. Paul Avenue and Sunset Drive.

The plan envisions dozens of 72 new upscale apartments, with rents ranging from roughly $1,000 to $1,500 monthly, where the 67,000-square-foot vacant strip mall now sits. It also features a two-floor, 30,000-square-foot medical or office building, near the separate existing Sentry store.

The vacant corner store of strip mall portion of the Fox Run shopping center faces Sentry Foods, one of only two remaining tenants on the property. A redevelopment proposal, which still needs city approval and is contingent on the creation of a special tax district, would convert the property into mostly into residential and office spaces.(Photo: Jim Riccioli/Now News Group)

Two outlots are also identified on the development documents. Either, or both, could involve some commercial uses, or additional residential space. The existing Chase Bank site would be the only building in the original 13-acre Fox Run center toremain.

The Sentry store within the redevelopment area recently closed as a result of the anticipated redevelopment, proposed in October 2019 byVJS Development Group LLC of Pewaukee, Bedford Development of Waukesha and Somerstone LLC of Brookfield.

The potential TIF district, which has already received the backing of the city's plan commission, still needs the support of the tax jurisdictions, meeting as the Joint Review Board. A formal project proposal would follow if the board approvesthe financing deal.

Further along in the pipeline are two plans unveiled in 2019.

The Reserve, anupscale apartment plan alsobuoyed by tax incentive funding, will feature186 living units plus more than2,000 square feet commercial space in a four-phase redevelopment along St. Paul Avenue and Barstow Street near Waukesha State Bank and the Fox River.

In separate decisions, the Waukesha Common Council on Sept. 3 advanced a proposed tax incremental financing district and approved a final site plan for a project that was initially proposed in May by Campbell Capital Group LLC.

This preliminary rendering of a five-story luxury apartment complex called The Reserve of Waukesha shows what a developer has in mind for a now-vacant commercial area near the Fox River and Waukesha State Bank downtown. As envisioned, the complex would include 186 units plus 2,100 square feet of commercial space.(Photo: Poole & Poole Architecture LLC)

Andrewssaid the TIF district is already in place, and city officials are currently working to finalize a development agreement with Mike Campbell, who heads the development partnership.

In documents prepared as part of early plans in the process, Campbell expressed confidence in his investment based on Waukesha's needs.

"The luxury apartment market today consists of an affluent individual who chooses to rent versusown, and is looking for an upscale community in close proximity to work, retail and entertainment," Campbell said in the letter. "The Fox River walking path also encourages a healthy lifestyle that is important to our target audience. This site has all of those qualities."

The construction area is fenced off and excavation work has begun on the 2.5-acre construction site for the 72-unit Frame Park Commons apartments along White Rock Avenue and Moreland Boulevard. Bear Development LLC is building affordable apartments on the site, which includes land that was once home to Fracaro's bowling lanes.(Photo: Jim Riccioli/Now News Group)

Meanwhile, construction has begun on a 72-apartment affordable housingcomplex, Frame Park Commons, at the intersection of White Rock Avenue and Moreland Boulevard. Spurred in part by the fire that destroyed Fracaro's bowling lanes in January 2018, the development is one of the newer projects that doesn't rely on an upscale market.

In her presentation prior to the January 2019 public hearing, Andrewsnoted that when the city created a new tax increment financing district in 2018 to support the redevelopment of the White Rock neighborhood, officials considered what developers would likely favor and what the city's housing survey indicated as a local need.

Bear Development LLC envisioned apartments with affordable rents in two buildings, one on each side of White Rock Avenue along Moreland. The developer began excavating the site in January.

Waukesha also has a mix of apartments renovated from older buildings, intended for other adults or smaller in scale in recent years.

New Perspective of Waukesha, under construction on 5.7 acres at the southeastcorner of EastBroadway and Les Paul Parkway, will consist of 128 living units, including some for assisted care, for seniors. The complex includes related amenities for older adults.

The conversion of part of the original Waukesha County Courthouse and jail on Main and Martin streets into 30 living units, plus a banquet center, opened in 2019. The apartments are intended for upscale tenants.

Downtown Waukesha has also seen apartments Waukesha Lofts on the west end and Clearwater Apartments several blocks to the east fitted into Main Street locations east of Barstow Street in the past decade.

Contact Jim Riccioli at (262) 446-6635 or james.riccioli@jrn.com. Follow him on Twitter at @jariccioli.

Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.

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Waukesha may soon have 500 more apartments. They are sorely needed, city says. - Milwaukee Journal Sentinel

Khalid David, CEO and cofounder of TracFlo TracFlo

For Khalid David, construction is a family business. His grandfather immigrated to the US from St. Kitts in the late 1960s and became a carpenter. His dad and uncle followed in their father's footsteps.

David's said he was 12 years old when he first stepped onto a job site, sweeping up while his dad worked side jobs.

"One hundred bucks in a weekend at twelve, that was crazy," David said.

David knew he wanted to work in construction, but he graduated during the recession when construction companies weren't hiring. He ended up working with his father and uncle's subcontracting business, and remembers "hacking together" Google Sheets to keep track of expenses.

He got the initial spark for TracFlo during his time working for Turner Construction. The company was rennovating Madison Square Garden during the summer offseason, and because of the tight timeline, they had to work three shifts a day, working around the clock.

"In a week, you did three weeks of normal paperwork," David said. "It was such a huge problem that the paper process didn't work."

David worked on a digital tool to track and approve change expenses, or the additional costs that come up during a project. Eventually, Turner shut the program down, but after David went to MiT for an MBA, he realized that the idea would have legs as its own company.

David's previous experience was invaluable to him, as he realized that he had spent most of his own life doing market research for TracFlo. His contacts in the industry have been another important advantage. He said that construction is often a business where "you have to know a guy who knows a guy" to get someone's attention and that attempting to use other kinds of marketing is "naive."

"You might need to go to a bar or need to have a cigar with a VP before you get an introduction," David said.

While his history in construction has been largely helpful, his lack of experience in the VC world has sometimes held him back.

"Certain things about startup and venture capital that are industry standards, haven't cracked the construction market yet," David said.

He gave the example of a referral program that someone on his team suggested, where customers who referred another customer could win tickets to a hockey match or a similar event. David instantly thought of kickback laws in construction, which have made people in construction "touchy" about any program that gives something back to them.

Knowing these norms have been helpful for David, but he thinks that they also may have hindered him from trying new ways to market the product.

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The diverse industry backgrounds of five construction tech founders - Business Insider

NOVEL Stonewall Station by Crescent Communities was recently sold to Lennar Multifamily Communities, a subsidiary of homebuilder Lennar Corp. with its eastern headquarters in Charlotte. The mixed-use community features high-rise and mid-rise residential units, light-rail access, and retail space, including a Whole Foods Market. The community has one of the largest displays of public art in North Carolina. (Crescent Communities)

To gauge the economic vitality of Americas Southeast region, consider one example: the Raleigh-Durham area in North Carolina.

After a lull late in 2018, the area has been adding jobs in dramatic fashion. Payroll employment grew over 4 percent annually in the first and second quartersover twice the state, region, and U.S. rates, says Dante DeAntonio, senior economist at economic forecaster Moodys Analytics in West Chester, Pennsylvania. Job growth has not been this strong in consecutive quarters since 2006. Health care, professional/business services, and leisure/hospitality account for two-thirds of net new 18,000 jobs in 2019.

The strengthening of the Raleigh-Durham labor market is carrying over into the areas single-family housing market. Prices are 25 percent above their peak in 2007, and new construction is at its high for the expansion, with housing starts back up to early-2000s levels and increasing at a well-above-average double-digit rate year over year, adds DeAntonio.

Raleigh-Durham is not an anomaly. Strong economies, healthy job creation, and significant population increases are also being reported across the Southeast, including major cities Charlotte, Atlanta, Miami, Tampa, and Orlando. These metropolitan areas continue to experience dynamic real estate sectors thanks to strong technology, tourism, finance, and other sectors.

That could change in response to unforeseen circumstances, of course. And, like many other areas of the country, the Southeast is also facing numerous challenges ranging from affordability issues to keeping up with new infrastructure that can handle rapid increases in population.But for now, the Southeast is on a roll.

Charlotte is in a lucky geographic place, being an urban center in the Southeast region of the United States, says Jon L. Morris, senior partner at Charlottes Beacon Partners, a full-service commercial real estate firm. The area will certainly have peaks and valleys, but on the aggregate in the next months, years, and decades, the Charlotte MSA [metropolitan statistical area] will experience continued product growth across all asset classes as the U.S. population urbanizes.

Dimensional Place in Charlotte, North Carolinas Wilmore neighborhood was completed in 2019. Duda|Paine Architects designed the 285,000-square-foot (27,000 sq m) building on a 2.3-acre (0.9 ha) site. Dimensional Fund Advisors signed a 15-year lease, taking all the projects office and meeting space. (Robert Benson Photography)

Atlanta continues its stellar economic run, too. Thanks to Georgia Tech (formally the Georgia Institute of Technology) and the areas many other universities, Atlanta is one of the largest technology hubs in the United States.

And few people know that Atlanta is one of the three or four most visited metropolitan areas in the U.S., with 51 million visitors last yearmore than Orlando, Las Vegas, or Los Angeles, adds George Banks, founder of Atlanta-based Revel, an experiential retail development and consulting company.We are adding new public and private attractions every day that will bring even more guests. It is great for retail and entertainment but hard on hotels: were either fully booked or half empty.

With low employment plus job growth, a robust residential pipeline, and major infrastructure improvements, the Miami area, too, has the ingredients for continued economic expansion.

The region has a 3.4 percent unemployment rate, and the Miami MSAMiami, West Palm, and Fort Lauderdalehas added 100,000 jobs over the past year and is projected to add 48,000 jobs each year for the next five years, says Robert Given, vice chairman at Cushman & Wakefield in Miami. In October, Spirit Airlines announced it will invest $250 million in a new Dania Beach corporate headquarters, moving 750 employees from Miramar [California] and adding another 250. Were benefiting from companies who want to get out of states like New York and California. Miamis population growth fuels everything. A lot of people now work from home yet do business all over the globe, Given says. The area is expected to add over 500,000 residents over the next nine years. Thats the equivalent of all the residents in Atlanta picking up and moving to Miami!

The economy in communities around Tampa Bay also is robust, with the region reaping the rewards of development seeds planted years ago.We are buzzing and growing by 300 persons per day. We are one of the top 10 markets, says Lucia E. Garsys, deputy county administrator in Hillsborough County. Residential is full throttle; eds and meds are hot and a key source of job growth; medical centers have major expansions in the works. Were also seeing an increase in what I call the James Bond economynew companies doing innovative technology that existed before only in the movies. For instance, entities such as Softwerx are working closely with the Department of Defense to help solve challenging warfighter problems.

And Orlando, where tourism has long been the primary driver of the economy, is reporting new industries springing up. We are continuing to see an increase in diversification of employment growth across all sectors, says Lisa Dilts, principal at Compspring, an independent real estate advisory company in nearby Winter Park. Some of the recent employment sectors that have seen growing activity in the area include high tech, financial service, and logistics. Companies are choosing our market for the location and relative value compared with other top-tier metros across the nation.

The 26-story, 742,000-square-foot (69,000 sq m) Ally Charlotte Center in downtown Charlotte is expected to be completed in 2021, with Ally Financial taking more than 400,000 square feet (37,000 sq m) of space. Developer Crescent Communities is seeking certifications including LEED, WELL Building Standard (a leading global rating system), Fitwel (a building rating system for commercial interiors), and WiredScore (which evaluates internet connectivity in commercial properties). (Crescent Communities)

Charlotte

The economy in Charlotte, North Carolina, is advancing at an impressive pace compared with the citys peers. Job growth easily outpaces that in North Carolina and the United States, and 4.5 percent annualized growth in the first half of 2019 was the strongest since 2016, according to Moodys DeAntonio.

Private service providers are shouldering the burden as goods producers and the public sector have shed jobs over the past year, he explains. The unemployment rate has edged higher this year, but a surge in labor force growth is responsible for the jump rather than weakness in the labor market. Average hourly earnings growth of 4 percent year over year is outpacing the U.S. average thanks to a groundswell of new high-wage jobs. The strength of the labor market has pushed the multifamily housing market to its limits as development booms and rents soar.

The area is expected to outpace the state and the country over the next year even as job growth moderates, DeAntonio says. Finance, logistics, and health care will propel gains, he adds. Expansion of the financial technology landscape will lend support, and the prospect for a big tech win still stands. Longer term, stellar demographics and a business-friendly climate will attract investment and keep Charlotte a top performer.

Beacon Partners Metrolina Park is a class A distribution park on a 135-acre (55 ha) site that formerly housed the Metrolina Tradeshow Expo in north Charlotte. The park contains over 1.8 million square feet (167,000) of space and was completed in 2018. (Beacon Partners)

As new jobs continue to be created through headquarters relocations and a new focus by major companies in the Charlotte market, mixed-use, office, and residential real estate will expand in the area, predicts Jason Munday, managing principal of the Charlotte office of SeamonWhiteside, an engineering and site design firm.

We definitely see continued growth in the greater Charlotte area, Munday says. Job creation is strong. Truist Financial [the result of the BB&T and SunTrust merger] will be headquartered here. Additional major operations include Honeywell, Allstate, LendingTree, and WeWork. Lowes invested recently in a global tech hub. The industrial sector is also seeing an uptick in activity, and the city is rezoning over 1,500 parcels along the Blue Line light-rail corridor for transit-oriented development.

Charlotte Douglas International Airport is one of the primary economic drivers behind the general economic success of the region, adds Morris, and the embrace of mass transit also positively differentiates the area, leading to additional real estate development. The CBD [central business district] is a construction zone in and of itself, Morris says. Given the aging demographic all across America, hospitals and medical office presents huge growth potential as well. Building on that medical base, Novant and Atrium both seem to be in growth mode. That has huge potential for us.

Crescent Communities 20-acre (8 ha) Escent Research Park, under construction in Charlottes University submarket, will have 158,000 square feet (15,000 sq m) of creative office space, with an expansive lobby and a two-story atrium. Escent is expected to be completed in 2021. (Crescent Communities)

Economic diversification bodes well for Charlottes future, says Elizabeth McMillan, senior director of development at Charlotte-based Crescent Communities, an investor, developer, and operator of mixed-use communities. Finance is a current bright spot, with expansions of current banks like Ally Financial and Bank of America, and the announcement that Charlotte will be the new headquarters of Truist. Health care is also a leading industry in Charlotte, as noted with the recent news of expansion by Atrium Health, she continues.

Ally Charlotte Centera 26-story, 742,000- square-foot (69,000 sq m) office tower in downtown Charlotte with Ally Financial taking more than 400,000 square feet (37,000 sq m)is expected to be completed in 2021.

Charlottes Stonewall corridor has seen tremendous growth over the past five years, she continues. In addition to Ally Charlotte Center, a 400-room JW Marriott will also open in 2021. Projects along the Stonewall corridor include Legacy Union [where Bank of America took space and Honeywell is locating its headquarters], Crescent Communities NOVEL Stonewall Station with 459 luxury multifamily units and a ground-floor Whole Foods, plus other mixed-use residential like Uptown 550 by Northwood Ravin and Savoy by Proffitt Dixon.

Even so, the area must deal with challenges such as affordable housing. All residents must be able to afford to live in our city, Morris says. The Charlotte community is learning that lesson and how to get out of our political and sociology-economic boxes to innovate ways that offer every citizen the opportunity to enjoy a safe and vibrant community.

Bond Brothers Beer Company in Cary, North Carolina, opened in 2016, replacing a carpet warehouse. The facility has a 10-barrel system with a 2,500-square-foot (230 sq m) tap room, a 3,500-square-foot (325 sq m) beer garden, and a 3,500-square-foot (325 sq m) brewery. It was designed by New City Design Group and developed by Northwoods Associates. (Duffy Healy Photography 2019)

Raleigh-Durham

North Carolinas Research Triangle area, around the cities of Raleigh, Durham, and Chapel Hill, is enjoying significant positive momentum across all real estate market sectors, notes Marcus Jackson, principal and a member of Avison Youngs capital markets group in Raleigh.

I believe the Great Recession improved our regions competitive position against the nations larger cities, Jackson continues. Before 2008, we were considered a second-tier city in terms of size and investment climate. Now, we are an institutional investor darling and ranked by ULI as the number-two U.S. market to watch for real estate prospects.

Reflecting investor enthusiasm for the market, the area experienced record-setting quarterly commercial real estate sales volume of $2.3 billion in the third quarter of 2019, bringing volume for the preceding 12 months to an all-time high of $5.6 billion, Jackson notes.

The rapidly growing region has witnessed strong rent appreciation while remaining an outstanding class A apartment value play for tenants and investors alike, Jackson says. The Research Triangle has also undergone rapid urbanization in the last decade, with billions of dollars of public/private investment in our cities urban cores, he adds. ULI now classifies the Triangle as an 18-hour city, increasing our attractiveness to potential talent and investment dollars. There are always silver linings to our down cycles.

New City Design Group of Raleigh transformed an old postal depot in Raleighs artsy Warehouse District into restaurateur Niall Hanleys Morgan Street Food Hall, a 22,000-square-foot (2,000 sq m) hub for more than 25 businesses, including Makus Empanadas, Oak City Fish and Chips, and Cousins Maine Lobsters. The space opened in July 2019. (Duffy Healy Photography 2019)

The Raleigh-Durham region has become increasingly attractive to new residents and businesses alike, benefitting all facets of the regions commercial real estate sector.

Office development has increased notably but remains in line with robust tenant demand, fueling healthy leasing fundamentals and strong rent growth for landlords, says Jackson. Wegmans just opened its first North Carolina [grocery] store in Raleigh and has five more in the works for the local market. Early next year, Amazon is scheduled to open a 700,000-square-foot [65,000 sq m] multistory fulfillment center that uses robotsthe first of its kind in the Triangle.

The Raleigh-Durham area is experiencing a talent/education/quality snowball effect, says Ted Van Dyk, principal at New City Design Group, based in Raleigh. Our strong academic centers are producing top talent, Van Dyk notes. Our tech sector continues to hire and expand, and the excellent quality of life is attracting more companies and talent to the region. Our prospects for growth are strong.

Longer term, stellar demographics, a deep talent pool, and low business costs will spur investment in Raleigh-Durham, and the region will be a top performer among large economies in the South. The states second-largest metro area will be an above-average near-term performer, Moodys DeAntonio says. Job growth will slow but broaden with strength in consumer and knowledge-based industries thanks to in-migration and investment in high tech.

The three-story, 8,500-square-foot (800 sq m) beer and cocktail bar Raleigh Beer Garden has one of the worlds largest selections of draft beers available in one restaurant. Designed by New City Design Group, Raleigh Beer Garden has a rooftop deck and over 3,000 square feet (280 sq m) of outdoor patio seating. (Duffy Healy Photography 2019)

Like other areas in the Southeast, Raleigh-Durham faces some clouds on the horizon. Our challenge here, as in other emerging 18-hour cities, will be to manage growth and increase transit, infrastructure, open space, and the arts, says Van Dyk. Our success will be short lived without a cogent game plan for our rapidly growing region. Short term, however, our prospects are bright, and a new generation of leaders is emerging to meet our challenges.

Atlantas Cooper Carry designed the master plan for Park Center, a regional campus being developed by Dallas-based KDC Real Estate Development & Investments in Dunwoody, Georgia. The firm also designed the first phase, a 585,000-square-foot (54,000 sq m) structure completed in 2016. Construction is underway on the second building, a 22-story office tower containing 670,000 square feet (62,000 sq m) of space. The project is pursuing LEED Silver certification. (Nigel Marson Photography Inc.)

Atlanta

Technology remains one of numerous bright spots in Atlantas urban and suburban environments.

A strong, talented labor pool continues to foster jobs, says Adam Schwegman, partner and senior vice president of retail leasing in the Atlanta office of North American Properties. Creating the right environments in walkable centers of commerce for these skilled workers will be the challenge. Today, Atlanta is full of disconnected suburban office parks and strip malls. Trail connectivity is becoming a major trend, with the Beltline and Alpha Loop proving trails can become oceanfront property.Colony Square in Midtownone of the citys original mixed-use projectsis about halfway through a redevelopment that will help connect residents, he notes. North American Properties is creating Midtowns living roomwalkable to transit; full of amenities; a community destination for office workers, neighborhood residents, and tourists alike at Colony Square,

Schwegman says. Next year we will open several new restaurants, a food hall, and a theater, all surrounding an active green space. Surprisingly, despite the fundamentals, this environment does not currently exist anywhere in the Midtown core.

The convention and tourism sector also has seen significant growth, as have the major health care providers in the market, says Kevin Cantley, president and chief executive officer of Atlanta design firm Cooper Carry. The growth of the film and music industries has led to the development of significant studio, soundstage, and related facilities, he adds.

Above and below: North American Properties is renovating Colony Square in Atlantas Midtown. When completed in 2021, the reimagined Colony Square will encompass two office towers and loft office buildings totaling 940,000 square feet (87,000 sq m); 262 residential condos; a 466-room hotel; and 160,000 square feet (15,000 sq m) of entertainment, retail, and restaurant space, including food hall Main & Main.(North American Properties, Beyer Blinder Belle, Lord Aeck Sargent)

Every indication suggests that a significant volume of real estate development and construction activity will continue, says Cantley. Demand continues to outstrip supply, as is indicated by ever-increasing rents across major market sectors, with only a few exceptions, he adds. The Atlanta Regional Commission projects Metro Atlanta will grow by 2.9 million people by 2050. Accommodating such a significant growth in population will require ongoing new development.

One of the major developments underway in Atlantas north-central perimeter is Park Center. Designed by Cooper Carry, the development is anchored by 1.7 million square feet (158,000 sq m) of office space scheduled to be occupied by State Farm Insurance.

It is a transit-oriented, mixed-use development in an area transitioning from dependent commercial uses to a walkable urban place that is now both commercial and residential served by an expanded MARTA [Metropolitan Atlanta Rapid Transit Authority] heavy-rail station, says Cantley.

Design architect Duda|Paine Architects of Durham, North Carolina, architect of record HKS of Atlanta, and interior architect Gensler (Atlanta) collaborated on NCRs 762,000-square-foot (71,000 sq m) global headquarters campus in Atlanta, which opened in October 2018. (Robert Benson Photography)

Design architect Duda|Paine Architects of Durham, North Carolina, record architect HKS of Atlanta, and interior architect Gensler (Atlanta) collaborated on NCRs 762,000-square-foot (71,000 sq m) headquarters campus in Atlanta, which opened in October 2018. It is a project of developer Cousins Properties, owners representative JLL, and NCR. Located near Tech SquareAtlantas technology and higher education hubNCRs new global headquarters is expected to attract the next generation of engineers and creative employees entering todays evolving workforce.

Los Angelesbased CIM Groups $5 billion Centennial Yards, one of the largest mixed-use projects in the Southeast, is another example of still-robust building activity, says Moodys senior economist Ilir Hysa. The ongoing project will take 10 to 15 years to complete and includes new residential, hotel, retail, and office space, as well as enhancements in infrastructure and green space in the downtown area, Hysa says.

Construction activity will be supported by projects in the periphery of the metro area, too. For example, a 916-unit housing development is planned to be built in Peachtree Corners in Gwinnett County, about 15 miles [24 km] northeast of Atlanta.

Robust building as well as expansion in outsize professional services and health care pushed the jobless rate to 2.9 percent in September, the lowest for Atlanta since tracking began. In such a tight labor market, finding qualified workers will remain the main headache for builders and other employers, Hysa adds. A lack of significant wage pressures, especially in blue-collar positions, has some workers working multiple jobs to supplement their income and keep up with the higher cost of living.

Designed by Duda|Paine Architects, the 118,000-square-foot (11,000 sq m) Emory University Student Center in Atlanta opened in May 2019. The structure is cooled and heated by geothermal wells. The historic East Dobbs University Centerthe Alumni Memorial University Center and its marble facadeare preserved and integrated into the new design. (Duda | Paine Architects)

Georgias film industry also has been an economic boon for the real estate industry, notes Banks. And it will continue to be so unless the folks down at the Gold Dome screw it up for the rest of us, he says, referring to the heartbeat bill passed at the state capitol that would prohibit abortions after a heartbeat can be detected in a fetus.

With such economic success come challenges, of course. Restaurateurs . . . are facing significant personnel shortages, as well as increasing food costs, construction costs, and rents, says Banks. Food and beverage sales may be up 4 percent this year, but weve increased the number of available seats by probably twice that. And as much as I wish differently, the answer to every empty retail space cant be put a restaurant in it.

Attainable housing is an increasing concern because multifamily development is not meeting increasing demand and rents continue to rise. A path to more diverse and affordable housing may be through eventual overdevelopment, resulting in competition for tenants driving down rents, says Cooper Carrys Cantley. Increasing traffic congestion is in many ways driving development to walkable urban areas served by transit, which is of limited supply. Also, suburban development is taking on a more walkable urban mixed-use form that greatly reduces the need for driving trips between single-use developments.

Swire Properties Brickell City Centre, a mixed-use development in Miamis Brickell financial district, is a planned 4.9 million-square-foot (455,000 sq m) development spanning nine acres (4 ha) and including two mid-rise office buildings, Two and Three BCC; two residential towers, Reach and Rise; a luxury lifestyle hotel with residences called EAST, Miami; and 500,000 square feet (47,000 sq m) of retail, dining, and entertainment space. The first phase of Brickell City Centre was completed in November 2016 with the opening of the projects luxury and premium shopping center. The building of BCC will continue over the next decade. (Lifestyle Producton Group)

Miami

While residential rental is leveling off somewhat, office demandparticularly in the urban coreis strengthening, and industrial real estate remains a star performer in the Miami area, says Neisen Kasdin, managing partner of law firm Akermans Miami office and a former mayor of Miami Beach.

Office is strong, with submarkets developing for hedge fund and private equity players like Barry Sternlicht and Carl Icahn relocating to the Miami area, says Kasdin. Triple-A condo locations for smaller luxury buildings continue to move forward. There is a lot of condo inventory, but no evidence of distress since the projects have low leverage with strong sponsors and large cash deposits before commencement of construction.The second phase of the Miami Design District has opened, Kasdin notes. The district is dedicated to innovative fashion, design, architecture, and dining experiences and is owned by Miami Design District Associates, a partnership between Dacra, founded and owned by entrepreneur Craig Robins, and L Catterton Real Estate, a global real estate development and investment fund.

In addition, the $4 billion mixed-use development Miami Worldcentersecond only to New Yorks Hudson Yards in visionis proceeding according to plans.

Miami Worldcenter occupies 27 acres [11 ha] in the heart of downtown Miami and is one of the largest private real estate developments underway in the United States, Given adds. Some 85 percent of the projects have either gone vertical or are going to start in the next 12 months. Also, Virgin Trains USA has broken ground to expand passenger rail service from Miami to Orlando. Passenger service on Virgin Trains, formerly Brightline, from Miami to Orlando is expected to begin in 2022.

Another impressive real estate development is PortMiami cruise terminals. Carnival Corporation, MSC Cruises, Norwegian Cruise Line Holdings, and Virgin Voyages are each building enormous cruise terminals at PortMiami. Total construction costs exceed $1 billion, says Kwame Donaldson, senior economist at Moodys. In addition, Virgin Trains just reached a deal to connect the cruise terminals via high-speed rail to other cities in South Florida and Orlando, he adds.

The Miami-area economy will grow in the short run, but a global slowdown could be a challenge, Donaldson predicts, adding Miamis international character and its high-skilled, bilingual workforce will help it outperform the nation in the long run.

Though the areas jobless rate has dipped to a 12-year low of 3.2 percent, the decline over the last year has been the weakest since the start of the recovery, he says. Average hourly wages have reached an all-time high, but wage growth has retreated to less than 1 percent, much slower than the statewide and national rates, which are above 3 percent. After accelerating at the end of [2018], house price growth slowed in the first half 2019.

Long term, the need for improved transit stands out, says Kasdin of Akerman. Future development will need to be on the higherand resilientcoastal ridge and the surrounding neighborhoods, which can be redeveloped and accommodate the density necessary to support transit, he says.

The 83,000-square-foot (8,000 sq m) Center for Health & Wellbeing in Winter Park, Florida, opened in February 2019. The Winter Park Health Foundation is the developer and primary owner of the facility, designed by Duda|Paine Architects. The center brings tness, medical care, and wellness into one integrated building for holistic and preventive care.(Lifestyle Production Group)

Orlando

Moderate costs, a high quality of life, robust in-migration, and a thriving tourism industry are expected to propel long-term growth in Orlando.The economy in Orlando area is stable, says Donaldson of Moodys. The areas unemployment rate, 3 percent, has hardly changed over the last year as wage growth outperforms the statewide and national rates, he says. After falling through the first half of 2019, these higher wages have drawn workers from the sidelines and led to a recent uptick in the size of the labor force. House price appreciation has slowed to less than 5 percent, though it has outstripped the statewide and national pace each of the last 13 months.Billions of dollars in public and private investment has been committed to the region, including Interstate 4 reconstruction (known as the I-4 Ultimate Project), a $2.3 billion rehab of Orlandos principal thoroughfare, according to Donaldson. In addition, Universals Epic Universe is a planned 750-acre (304 ha) addition to Universal Orlandos collection of theme parks. The expansion is nearly equal in size to the resorts current offerings, he says.

Also, the south terminal expansion underway at Orlando International Airport is planned for completion in 2021, says Dilts. Within the terminal, an intermodal facility is being constructed that will eventually provide connections to the Virgin Trains USA line from South Florida, and a potential connection to Orlandos commuter rail, SunRail, she says.

The south terminal expansion underway at Orlando International Airport is planned for completion in 2021. An intermodal facility accessible by walkway that will eventually provide connections to the Virgin Trains USA line from South Florida, and a potential connection to Orlandos commuter rail, SunRail, was completed in 2017. (Greater Orlando Aviation Authority)

Over the next year, Dilts continues, we anticipate Orlando to remain a top market for economic growth. Having said that, we do predict a slowdown in achievable land values. We are seeing an inflection point where the prices being paid for land and escalating land values are not translating to the same achievable increases in rents and home prices that people are able to pay.

While the region retains a competitive value in comparison with other job centers across the country, Dilts notes, we are not immune from the challenges of providing attainable and affordable housing to the workforce. For the region to continue to grow and house the workforce, we will need to continue pursuing creative solutions. These will come in the form of increased permissible density, waived impact fees or fees that are tied to the unit size, and innovative construction technology.

The University of South Floridas Morsani College of Medicine is slated to open a 395,000-square-foot (37,000 sq m) facility in downtown Tampa, with classes for its doctor of medicine program expected to start in January. The Morsani College of Medicine is a key anchor in the $3 billion redevelopment of downtown Tampas Water Street district. (University of South Florida)

Tampa/St. Petersburg

Eds and meds are one of the major growth sectors in the Tampa Bay area, with a lot of medical space coming out of the ground, Garsys says, adding that the seeds were planted and nurtured years ago. The Morsani School of Medicine at the University of South Florida is slated to open a 395,000-square-foot (37,000 sq m) facility downtown, with undergraduate medical education courses expected to start in January 2020.

The H. Lee Moffitt Cancer Center & Research Institutea nonprofit cancer treatment and research centerand AdventHealth are working to open an outpatient cancer center on the campus of AdventHealth Wesley Chapel in Pasco County, she adds. The outpatient center is expected to open in the fall of 2020.

Another major real estate development that is continuing: Water Street Tampa between the Port and downtown Tampa, led by Strategic Property Partners. The projects plans call for the addition of 9 million square feet (836,000 sq m) of new space. The Water Street Tampa neighborhood will include the first new downtown office towers in nearly 25 years and the first for-sale condominiums in almost a decade.

The Tampa/St. Petersburg areas unemployment rate has edged lower over the past year, from 3.3 percent to 3.2 percent, says Donaldson. Weakness in the labor market is reflected in the housing market, which is showing price appreciation at its slowest since 2012.

The economy in TampaSt. PetersburgClearwater will slow as the next downturn takes a toll on migration into the region, he predicts. Public institutions will provide support during the slowdown, but a lack of regional cooperation is a risk to faster growth. The areas high quality of life and moderate cost of living brighten its long-term prospects.

Barring a global financial meltdown, Americas Southeast region is expected to continue its economic expansion in the years ahead. But the region must also tackle major concerns such as affordable housing, transit, and increasing building costs, too.

MIKE SHERIDAN is a freelance writer in Richmond, Virginia.

Link:
Region in Focus: Tracking the Growth across Six Regions in the US Southeast - Urban Land