Tuesday, April 8, 2008

CBRE Jacksonville Releases Q1 Marketview Reports

(Photo above of boat clearing the bridge on St. Johns River in downtown Jacksonville)

JACKSONVILLE, FL--Although the vacancy rate has remained stable in the Office Market since last year at this time, we are seeing an increase in sublease space and this will affect the vacancy rate in the upcoming quarters." - Traci Jenks, CCIM, Senior Associate, 2008. (photo at right)

The overall vacancy rate for office space this quarter is 13.3 percent, slightly lower than the 13.8 percent reported in the first quarter of 2007.

Construction activity at the end of first quarter 2008 totals approximately 379,400 square feet.
Asking rates for direct office space decreased from $18.42 to $18.19. Rates declined in both the Downtown and Suburban submarkets.

Although lower than the three previous quarters, direct net absorption within Jacksonville's office market remained positive at approximately 26,342 square feet.

Industrial Market

Velocity of leasing activity is below previous years. The year should remainflat with a dramatic uptake in 2009." - Terry Quarterman, First Vice President, 2008. (Photo at left)

The Jacksonville Industrial Market experienced approximately 724,282 square feet of positive absorption in the first quarter of 2008. Most of this absorption occurred within the Oceanway submarket with the delivery of the build-to-suit property for Samsonite.

According to Terry Quarterman, First Vice President, "Build-to-suit business is the highest it has ever been with over 4 million square feet under construction." Another 806,000 square feet of space will be delivered and occupied in the second quarter of 2008 for Sears.

The average triple net asking rate for all available space including flex is approximately $4.71 per square foot.

Retail Market

Jacksonville's market remains stable. As we begin to see the larger developments break ground, we will also see the smaller centers struggle. 2008 will prove to be an interesting time in retail." - Ashley Way, Sales Associate, CB Richard Ellis, 2008. (Photo at right)

The Jacksonville Retail Market's overall vacancy rate increased to 7.0 percent in first quarter 2008.

The unemployment rate in the Jacksonville MSA was 4.6% in the first quarter of 2008. This represents an increase over the unemployment rate one year ago when it was 3.8%.
The average lease rate for local retail space in the Jacksonville Retail Market increased in the first quarter of 2008 to $16.00 per square foot. Historically, the lease rates have proven to be stable regardless of the economic conditions.

Jacksonville's overall Retail Market vacancy rate is expected to remain strong during 2008 as shopping centers currently under construction are delivered. Absorption is forecasted to remain positive throughout the year. As future projects are delivered, the average lease rate will remain stable.

View the full Jacksonville Retail MarketView report

CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2007 revenue). With over 29,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate offices).

Tremont Structures $5,250,000 Financing for Illinois MHC

CHICAGO, IL--The Chicago office of Tremont Realty Capital arranged financing for the refinance of Valley View Estates, (photo at left below) a 234-site manufactured housing community located in Shiloh, Illinois.

Thomas Lorenzini, (top right photo) a Managing Director with Tremont, arranged the $5,250,000 loan, which was funded through a Fannie Mae DUS lender. The 9-year, non-recourse loan provided for roughly an 80% loan-to-value with a 5.86% interest rate. The property was 93% occupied at the time of closing.

Amenities include a playground and a basketball court. According to Lorenzini, “Given Tremont’s successful track record with manufactured housing communities, we were able to ensure a smooth and timely closing for the borrower during this turbulent market.”

Tremont Realty Capital, LLC is a national real estate investment and advisory firm, which makes direct debt and equity investments and provides institutional advisory services. Direct programs include high leverage bridge loans, short and long term mezzanine loans and equity capital. The Chicago office of Tremont Realty Capital is located at 30 N. LaSalle Street, Suite 2050, Chicago, IL 60602. The phone number is 312.236.2444 and the fax number is 312.236.1534.

You can visit Tremont on the Internet at http://www.tremoncapital.com/.

For additional information on this transaction, please contact:
Tom Lorenzini at 312.236.0960

Metro Orlando Industrial Market Flat but Tenant Prospects Increasing, Says Rebman Properties Report

ORLANDO, FL--Greg Rebman, (right top photo), vice president and corporate/industrial specialist of Winter Park, FL-based Rebman Properties Inc., reports Orlando’s bulk warehouse leasing market was quiet in the first quarter of the year for the third consecutive quarter, although there were two large subleases signed and a number of large tenants shopping the market.


There was 111,876 square feet of net absorption in the 132 surveyed buildings. In spite of the flatness of the market, the net absorption was at an average quarterly level because of the fact that the market was relatively inactive both in entrances and exits.

The good news is the increased number of prospective tenants with requirements in excess of 100,000 square feet who are currently shopping. The trick will be to convert this activity to signed leases in this “wait-and-see” market.

The largest leases for the first quarter were as follows:

U.S. Postal Service subleased 188,468 s.f. at 2000 Landstreet Road;
ROL Manufacturing subleased 88,000 s.f. at Sunbelt Distribution Center;
Prologix leased 75,900 s.f. at OCC #600;
Dal-Tile leased 62,377 s.f. at Cypress Park East III; and
Dayton Superior leased 44,600 s.f. at Liberty Park @ AIPO, Building B.


The vacancy rate rose from 11.71% at the end of 2007 to 12.75% at end of the first quarter. Two new buildings were added to the survey: Northwest Distribution Center, Building A, a 117,048 square foot, rear-load facility; and Northwest Distribution Center, Building B, a 200,232 square foot, cross-dock. Vacancy rates have risen steadily since the second quarter of 2004, when they were at a low of 5.37%.

Rental Rate

The average quoted rental rate for the 132 buildings surveyed is $4.66 psf triple net, virtually unchanged from the average of $4.65 psf triple net at year end, and $4.63 psf triple net at the end of the third quarter of 2007.


Beachline Corporate Center, Building 100 is under construction at 15000 Aerospace Drive in International Corporate Park. The 360,000 square foot, cross-dock facility is slated for completion in June.

Beltway Distribution has just broken ground on three buildings slated for completion in November. Building #100 is a 141,810 square foot, rear-load facility; Building #200 is a 145,540 square foot, rear-load; and Building #400 is a 378,600 square foot, cross-dock facility.


Industrial brokers responding to the survey generally expressed that the market is flat, but were hopeful for the coming quarters because of the increase in large tenant prospects circulating the market. Brokers have varied explanations for the increase, from “a market anomaly” to the fact that in a contracting market many large tenants consider centralizing their supply chain, thereby consolidating their warehouse facilities.

Tenant prospects are continuing in their “wait-and-see” mode and many existing tenants are asking for short renewal terms, e.g. 12-month renewals.

Overall, it is expected that leasing in Orlando will remain flat through the end of the year before resuming the strong absorption seen in 2006 and the first half of 2007.

Lynn G. Bailey
Rebman Properties, Inc.
A CORFAC International Member
1014 W. Fairbanks Avenue
Winter Park, FL 32789 USA
Tel: 407.875.8001
Fax: 407.875.8004

Marcus & Millichap Names David K. Rogers as Top Manufactured Home Specialist Nationwide

For the third time, Rogers is recognized as the firm’s leading agent.

ENCINO, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named David K. Rogers (top right photo) as its top manufactured home communities investment specialist in 2007.

Rogers, a vice president of investments based in Ontario, facilitated transactions valued at more than $61.58 million last year. Rogers earned the distinction as the top manufactured home communities agent in 2004, 2006 and 2007.

“We are proud to recognize David as the firm’s top-ranking manufactured home communities investment specialist,” says Jeffrey Mishkin, (photo at left) national director of Marcus & Millichap’s National Manufactured Home Communities Group. “David has consistently ranked as the firm’s top manufactured home communities agent, thus demonstrating his tremendous knowledge of this market on a national basis, superior transaction expertise and dedication to providing the best client service.”

Rogers joined Marcus & Millichap in November 2001 and was promoted to vice president of investments in early 2008. His transactions last year included a $12.8 million manufactured home community in Bay Point, Calif.; a $9.3 million manufactured home community in Bakersfield, Calif.; and a $14.5 million manufactured home community portfolio in Las Vegas.

Press Contact:
Stacey Corso
Communications Department
(925) 953-1716

Marcus & Millichap Lists 132,950-SF Mixed-Use Property in Conroe, TX

  • CONROE, TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for River Bend Station, (photo above) a 132,950-square foot mixed-use office and retail property in Conroe.

  • Paul Gardner, (photo at left) a senior associate in the Houston office of Marcus & Millichap, is representing the seller. (Photo of Bush Intercontinental Airport control tower, near River Bend Station, is at right)

  • “River Bend Station is an excellent opportunity for an investor to acquire a 100-percent occupied well-maintained property with excellent highway frontage and visibility in a high-growth area,” said Gardner.

  • Located at 11133 Interstate 45 South, the mixed-use property is situated on a 31.93-acre lot, which includes 15 acres of undeveloped freeway frontage, at the corner of Creighton Road and Interstate 45, just north of The Woodlands Regional Mall, (The Woodlands central business district photo at left) and minutes from Bush Intercontinental Airport. (Airport's control tower photo top right)

  • Built in 2004, the property consists of 101,124 square feet of office/warehouse space and 31,826 square feet of retail space.

    Stacey Corso
    Public Relations Manager
    Marcus & Millichap
    2999 Oak Road
    Suite 210
    Walnut Creek, CA 94597
    Office: 925.953.1716
    Mobile: 415.672.6460
    Fax: 925.953.1710