Tag Archives: retail

Demographic Shift, Investor Demand Reshaping Broward’s Apartment Market which shows similarities to Pinellas & Sarasota counties.


Pic credit – Jason Ludwig

PUBLISHED: JUL 17, 2017

Broward County multifamily housing and retail is undergoing a remarkable transformation as millennials and empty nesters are embracing urban living and young professionals seek similar experiences in suburban settings.

Having been built out for some time, much of the development in Broward has shifted from gated communities in western suburbs to multifamily housing in the urban core. About 4,000 condominium and apartment units in 20 blocks of Fort Lauderdale are set to come online in the next few years. 

Most of the new properties will resemble The Manor at Flagler Village, a mixed-use complex with residential units between 700 and 1,350 square feet. Rents range from $1,826 to$2,921 per month, about 30 percent higher than other nearby Class A buildings. The retail component, which is managed by Franklin Street, occupies the first floor and includes popular restaurants such as The Brass Tap, a craft brewery and Mellow Mushroom. Other service-based retailers range from a dentist office and fitness center to nail and hair salons. Nearby is a Fresh Market grocery store, a museum and parks. These amenities appeal to millennials. 

Young adults are looking for the best apartment spaces available regardless of unit size. Millennials care more about the fact that there’s a restaurant that they like in the lobby and Wi-Fi access throughout the entire building.

Their interests are altering the retail environment. Traditional retail is being replaced with service-oriented businesses where people can eat, have a drink, get their nails done or meet with a financial advisor.

Baby boomers want similar amenities. Many retirees are selling their four-bedroom houses in the suburbs and moving into an apartment where they don’t have to worry about things like lawn care. They can travel for pleasure or to visit grandchildren and want the freedom that comes from not owning a home. 

Thanks 

As part of the population move to the downtown core, more people are doing something unusual in South Florida: they are giving up their cars. With easy access to ride-sharing programs, consumers are taking the money budgeted for a vehicle and putting it toward rent instead. 

Broward municipalities such as Coral Springs and Plantation are following suit. An urban core is emerging in Coral Springs centered around a new downtown city hall that is under construction and over 300 apartments have been built. One is Bainbridge at Coral Springs, a five-story development with top-of-the-line amenities and rents $300-$700 a month less than in downtown Fort Lauderdale.

Properties like that attract young professionals. Millennials that have small children prefer neighborhoods with A-rated schools. While some couples have started families, they are still active and want to go out and socialize with their friends in places like those in downtown Fort Lauderdale.

They’re attracted to places such as Plantation Walk, which will go up on the site of the former Plantation Fashion Mall. Plans call for 700 rental apartments, 200,000 square feet of retail and a Class-A office tower. It appeals to young people who don’t want to travel 25-plus minutes to downtown Fort Lauderdale for work or fun. They would prefer a short walk or ride to their office and to have restaurants, bars and shopping close to home.

Multifamily investors have noticed the trend and started to grow their portfolios. Demand has so outstripped supply that an investor that would normally purchase a Class A or Class B property in an established area is going out of their comfort zone and buying a Class C property in an emerging neighborhood.

In Broward County, much of the buyer interest is coming from out-of-area investors working with local conduits. When Franklin Street recently marketed 167 units in downtown Plantation, we garnered about 17 written offers in two weeks, half of them from investors in New York, Philadelphia, New Jersey and Canada.

Outsiders are active in Florida for two reasons: The first is cap rate compression. Investors are seeing deals at 1 to 2 percent, and at zero percent in some cases in New York. Florida cap rates are also being squeezed, but they are still at 5-6 percent.
Second, Florida offers significant tax benefits. Out-of-state investors can re-capitalize their portfolios, sell their properties at a premium, come down here, and trump everybody at the local market level.

Today’s investors are not looking for immediate cash. Many are buying properties in neighborhoods that they think are up and coming. These buyers expect that their apartments or mixed-use buildings will be smack in the middle of a redevelopment play five to 10 years down the line. Given current trends, they are likely to be right.

 

Credit:

HERNANDO PEREZ AND DAN DRATCH

Source:

Southeast Real Estate Business

URL:

http://rebusinessonline.com/

Panel to Discuss Sarasota New Urbanism, Planning, Traffic Next Week

 

 

Panelists will discuss the New Urbanism planning philosophy, public approval for new developments, traffic and more during the next Sarasota Tiger Bay Club luncheon.

Panelists will discuss the new citizens’ group STOP!, the New Urbanism planning philosophy, public approval for new developments, traffic and more during the next Sarasota Tiger Bay Club luncheon. The panel will include STOP! member and Sarasota Planning Board member Eileen Normile, STOP! member Kate Lowman, architect and Planning Board member Chris Gallagher and traffic planner Damian Miller. The luncheon begins at 11:30 a.m. Thursday, July 6, with the panel beginning at noon. The event takes place at Michael’s on East, 1212 S. East Ave., Sarasota. Registration is $25 for Tiger Bay members and $30 for non-members.

Real estate finance expert joins Ian Black Real Estate team

via Tampa Bay Newswire

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George Kruse brings with him more than 20 years of real estate finance experience

SARASOTA, Fla. (Dec. 21, 2016) – Real estate finance executive George Kruse has joined the Ian Black Real Estate (IBRE) team as a Sales Associate in the firm’s Sarasota office. Kruse brings with him more than 20 years of experience on both the debt and equity sides of commercial investments. In addition to his role as a commercial broker, he will provide the IBRE team with guidance in value creation, financing opportunities and an understanding of the present debt and equity environments.

Kruse is also a Senior Managing Director at Osprey Capital, a Tampa-based commercial real estate finance company, specializing in the financing of value-add investment opportunities.

“We’re thrilled to welcome George to the team,” said Ian Black, partner at Ian Black Real Estate. “His experience on the financing side of the industry is a valuable add-on to our existing skill set and will go a long way in providing our clients with the highest level of service available.”

Leveraging Kruse’s expertise in the finance industry will allow the IBRE team to better assess opportunities for clients and maximize their investment potential.

Previously, Kruse spent more than seven years as the sole managing director of Vesta Equity, LLC, a private real estate investment fund based in Sarasota. Under his leadership, Vesta made over $200 million in small balance senior and equity investments nationwide. He also oversaw both the lending and investment divisions and structured the fund’s capital deployment strategies.

Prior to that, he served as an Investment Officer at CapitalSource Finance in both the New York and Orlando offices. At CapitalSource, Kruse was directly involved in over $600 million in commercial loan and hypothecation line transactions.

Kruse earned his bachelor’s degree in finance and management from the University of Florida and his Master of Business Administration from Columbia Business School. He recently obtained his Florida Real Estate license.

“It’s an honor to join the Ian Black team and put my experience in real estate finance to use in this side of the industry,” said Kruse. “I’m looking forward to starting my career as a commercial sales associate and working alongside such a strong team of brokers in the Sarasota market.”

Kruse is currently on the Advisory Board for the University of Florida’s Masters of Science in Real Estate (MSRE) program, as well as the Board of the Columbia University Club of Sarasota. He is a member of the International Council of Shopping Centers (ICSC) and the Sarasota Commercial Investment Division (CID), and is regularly asked to moderate and sit on panels about private commercial financing.

About Ian Black Real Estate
Ian Black Real Estate (IBRE) is a boutique commercial real estate brokerage firm located in Sarasota, Fla. The firm is one of the largest commercial brokerage firms in Southwest Florida and boasts a deep knowledge of the commercial real estate market in Sarasota and Manatee counties and the surrounding area. For more information, visit ian-black.com.

Click here for original press release

Is a correction in commercial retail coming?  If so, when?

  


By Natalie Dolce via Globe St

VEGAS—It is that time of year again and GlobeSt.com ramps up its retail coverage in preparation for RECon, the International Council of Shopping Centers’ sprawling annual get-together. As more than 30,000 attendees prepare to descend on the Las Vegas Convention Center for this year’s edition, GlobeSt.com sat down recently some key attendees and retail experts to discuss some expectations for the upcoming event.
Chris Wilson, EVP and southwest retail brokerage lead of JLL, tells GlobeSt.com that this year, he expects to see a high degree of speculation regarding where we are in the real estate cycle. “I expect to hear and be part of discussions that are not if a correction is coming but when,” he says. “I hope to gain some insight as to how hard the landing might be and what may cause the correction.”
Jeff Hughes, a managing director at Stan Johnson Co., is looking forward to several key meetings with longstanding clients as well as getting a sense of what the overall activity level and sentiment is amongst developers and investors. “These large gatherings are an easy way to receive quick feedback on market health while gaining new activity from new clients,” he says.
According to Hughes, although retail is seeing high transaction volume, “markets are sending mixed signals with disruptors.”
Hughes says that is “possibly because there is an increase of supply or concern about the CMBS markets, and investors are going to give pause with this year’s election.”
Ron Meyers, SVP of Leasing, Phillips Edison and Co., tells GlobeSt.com that through the firm’s 25-year history of building shopping center portfolios, it has deep seeded relationships with many of the retailers who attend the convention. Meyers and his team conduct more than 1,000 meetings each year. “It is always a good time to reconnect with them and provide an update on our growing portfolio and our tenants’ growth plans. In addition, we look forward to developing new partnerships with national tenants that have growth plans that align with Phillips Edison’s strategic business objectives.”
For complete article, click here 

Your Grocery Store May Soon Be Cut in Half

via Money

tara bay CC sunset - by Richard Bottorff

Many grocers known for the gigantic mega-supercenter shopping experience are trying out store models shrunk down to the size of the old neighborhood market.

@bradrtuttle

For decades, the average American supermarket’s size evolved similarly to the average American’s weight: It grew and grew. Lately, though, many grocers known for gigantic mega-supercenters are trying out store models shrunk down to the size of the old neighborhood market.

A few years back, the average size of a grocery store was measured at over 45,000 square feet, up from 35,000 square feet in the mid-’90s. The supersizing of supermarkets may have come to an end, however. The shrinking of grocery stores has been a noticeable trend in recent years. Chains such as Aldi and Trader Joe’s, which both operate stores typically under 20,000 square feet—and which both happen to be owned by the same German company—have been extremely successful, opening new locations left and right. Walmart, the ultimate big-box megachain, has stepped up efforts to expand its small store formats, especially in urban neighborhoods, to compete not only with local grocers but dollar stores as well.

Plenty of other big names in groceries are also now jumping on the small-store trend. The Orlando Business Journal reported that Publix, which runs supermarkets as big as 60,000 square feet, mostly in the South, is working on a store prototype in the neighborhood of 20,000 square feet.RetailWire noted that several other large—and typically large-sized—supermarket brands, including Kroger and Hy-Vee, are also launching or expanding mini-grocery stores.

Last fall, Kroger opened three 7,500-foot-square-sized stores operating under the name Turkey Hill Market in the Columbus, Ohio, area. The markets are a fraction of the size of the typical Kroger (67,000 square feet), and it’s being presented as a cross between a convenience store and a supermarket. Hy-Vee opened a 14,000-square-footer under the “Hy-Vee Mainstreet” concept in Iowa in mid-April.

For the complete article, CLICK HERE <—–

Publix may be considering smaller stores

Publix may be considering smaller stores

By John Ceballos
Halifax Media Group

LAKELANDRumors of Publix Super Markets Inc. launching a smaller-scale version of its successful grocery stores have resurfaced.

Representatives from the Lakeland-based chain met with city of Gainesville planning staff members — including the planning manager, Ralph Hilliard — about constructing a smaller-concept prototype near the University of Florida campus, according to a report in The Gainesville Sun.

Publix spokesman Brian West declined to comment specifically on the development or imminent debut of a smaller store.

“We continually evaluate our store prototypes and market area opportunities,” West said. “There are many factors considered in site selection and choosing the appropriate prototype for the site.”

The Tampa Bay Business Journal reported in October that Publix was developing a design for a 20,000-square-foot store in Charlotte, North Carolina.

West said the average Publix store is about 45,000 square feet, and the chain’s current smallest location is 27,000 square feet.

The proposed site — 201 NW 13th St., Gainesville — is presently occupied by the city’s first McDonald’s, which opened in 1968. According to The Gainesville Sun report, McDonald’s officials are in the process of relocating the restaurant.

If Publix does debut a smaller-store prototype in the near future, the company would be joining a growing trend in the supermarket industry.

CLICK HERE for complete article <——

Global Doldrums Could Reach US in 2015: NAR

Global Doldrums Could Reach US in 2015: NAR

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By Paul Bubny via GlobeSt.com

A slowdown in economic growth globally isn’t breaking the stride of the US economy or commercial real estate, the National Association of Realtors said Monday, predicting that the momentum will carry forth into the new year. However, NAR’s quarterly forecast hints at a potential drag on US growth as overseas markets weaken.

“GDP growth in the fourth quarter will be sluggish at around 2% behind stalling exports,” says Lawrence Yun, NAR’s chief economist. “Although GDP will likely climb to near 3% in 2015, the current pace of job growth could slow and ultimately impact commercial real estate activity if sluggishness in the global economy persists.”

It was increased export activity, along with government spending turning positive, that drove third-quarter GDP growth, says NAR. US exports rose 7.8% in Q3 after a double-digit annual rate of growth in Q2, while import volume dipped by 1.8%.

Government spending rose at a 4.6% annual rate during Q3, led by increased federal spending and particularly increased defense spending, which rose 15.9% during the quarter. Consumer spending also rose, albeit more modestly, as did business spending. All in all, according to the NAR report, “The economic picture was positive across most major indices” during Q3.

This goes to prove, Yun says, that “the second quarter wasn’t an anomaly, as business spending increased, commercial construction rose and the labor market continued to make positive strides. Job growth is the catalyst to improved demand for commercial real estate leasing and new construction projects.”

NAR say national office vacancy rates are forecast to decrease 0.5% over the coming year to 15.7%, thanks to job growth exceeding inventory coming onto the market. On a more localized basis, though, the numbers continue to vary quite widely.

NAR says that improved manufacturing activity should lead to a declining vacancy rate for industrial space, going from 8.8% at the end of this year to 8.4% 12 months from now.

Vacancy rates in the retail market are expected to decline from 9.7% at year’s end to 9.5% 12 months hence.

Average apartment rents are projected to rise 4.0% this year and 4.1% in 2015. Multifamily net absorption is expected to total 216,300 units in 2014 and 171,200 next year. “Low housing inventory and the sizeable demand for rentals will continue to spur multifamily construction as well as keep rents rising above inflation through next year,” says Yun. That being said, the pace of construction will mean a slight uptick in the multifamily vacancy rate to 4.3% by the end of ’15.

For complete article, CLICK HERE <——=======

Herald Tribune Business Weekly Press Release

Herald Tribune Business Weekly Press Release

NAI Manasota - Sean Dreznin

NAI Manasota, based in Lakewood Ranch, has added hired two commercial real estate specialists, Sean Dreznin and Richard Sellers….

Dreznin is a commercial property management professional who owned and operated a professional services management company for several years. He will work with NAI’s Commercial Investment Sales & Special Asset Services group.

Click here for full article <——

The Announcement of a New Career in a Familiar Industry.

The Announcement of a New Career in a Familiar Industry.

Commercial Investment Sales, Asset Services and Property Management

It is my pleasure to announce I have accepted the position of Commercial Investment Sales, Asset Services and Property Management Advisor with NAI Manasota.

Here is the link to my profile.

AIG agrees to sell 2 NYC buildings

The embattled insurer American International Group Inc. is selling its headquarters building in New York and a nearby building in a deal expected to close at the end of this summer, a person familiar with the matter said Wednesday.

But the person said that AIG is not disclosing the price or who the buyer is. The person asked for anonymity because the sale has not been made public yet.

The building sales are the latest move by AIG, which has received $182.5 billion in financial support from the government since September, to shed assets to repay the loan package.

The buildings are at 70 Pine Street and the adjacent 72 Wall Street in lower Manhattan.

Why do I have the feeling that the reason AIG is keeping this quiet and confidential is they are making a substantial profit on the sale and somehow are going to circumvent delivering those profits to the shareholders (The taxpayers!!!) and instead keep them for themselves.

You wait and see, I believe that will be the case.