Regional Outlook

NATIONAL

The Best City for Business
Des Moines, Iowa, outranked 100 other metros with populations above 500,000, according to MarketWatch’s 2009 year-end survey. The city outscored second-place Washington, D.C., as well as the remaining top five: Omaha, Neb., Minneapolis-St. Paul, and Boston. Des Moines’ low unemployment and strong economic fundamentals boosted its rating. For the complete list and metrics go to www.marketwatch.com.

EAST

New York Saves $11.9 Million in RE Costs
New York State is taking advantage of the soft real estate market to cut almost $12 million from its real estate budget, according to James Sproat, CCIM, director of real estate for the Office of General Services, which handles all real estate for New York State agencies. “We have about 600 leases and 12 million sf of office space that we lease from private landlords,” Sproat says. The state saved about $6.3 million renegotiating rental rates on lease renewals and extensions, $3.4 million on renegotiating rents on existing leases, and $2.2 million in unauthorized lease expenses found through lease audits.

SOUTH

Tampa, Fla.,
Office Leasing Concessions
Lease term 5 to 7 years, under 50,000 sf, 4Q09 

WEST

San Diego County’s largest real estate-owned sale last year was the 66,010-sf Hacienda Del Mar office building, bought by Davlyn Investments for $15.6 million or $236 psf. Chinatrust Bank of California had repossessed the property from Cardinal Investments, which acquired it in 2007 for $27.5 million. The property was at 53 percent occupancy at purchase.

WEST

One of only three institutional multifamily sales in Colorado last year, Jefferson at Arvada Ridge sold for more than $28.4 million, a price of $107,898 per unit. JPI Multifamily Partners sold the 264-unit property to Asher Investments, with Apartment Realty Advisors representing both parties. Built in 2005, the 90 percent occupied complex is located less than one mile from a future light rail transit station.

Markets to Watch

Minneapolis-St. Paul — As elsewhere, property values in the Twin Cities have declined 30 percent to 40 percent, according to Colliers Turley Martin Tucker’s 1Q10 investment report, and may drop even further. Net-leased properties including corporate sale-leasebacks and single-tenant retail with quality credit tenants may be the best investment bet here, providing consistent cash returns.

Mobile, Ala. — A 2,800-acre mixed-use master-planned motor park development should rev up Mobile’s tourist appeal in the next few years. Gulf Coast Entertainment signed a $500 million tax increment financing deal last summer to develop Alabama Motorsports Park, a speedway venue that also may include an RV park, and office, industrial, and residential components. Forest City Asset Services was named master development consultant to manage the project, which expects to break ground this year and open in 2012. The TIF agreement granted by Prichard, Ala., is one of largest ever approved in the U.S.

MIDWEST

Indy Forecasts early industrial recovery
Indianapolis’ industrial market should be one of Indiana’s first areas of recovery, according to Cushman & Wakefield’s 4Q09 report. Steady leasing and positive overall absorption for 2009 are key indicators of this stable market. Recent deals include Belkin International consolidating its West Coast facility into its expanded 798,096-sf Plainfield, Ind., facility and Cantrell Logistics leasing 270,000 sf in the city’s East submarket. In addition, 2009 saw only 1.2 million sf of speculative and 3.2 million sf of build-to-suit construction completed, with little new development planned for this year.

SOUTH

In Clearwater, Fla.’s largest lease of 2009, Ross Realty Group leased 13,076 sf to Ultimate Medical Academy at 1255 Cleveland St. in downtown Clearwater. The six-year lease was negotiated by Ned Roberts and James Moler, CCIM, on behalf of the building’s owner, The Jade Group.