Thursday, August 4, 2011

Colliers Finds U.S. Office Market Recovery Modest and Fairly Volatile

SEATTLE,  WA, Aug. 4, 2011 /PRNewswire-USNewswire/ -- The U.S. office market boasted modest improvements in total net absorption and vacancy rates during the second quarter, according to a new research report on quarterly activity in the U.S. office market from Colliers International.

 The core, gateway cities outperformed the national market as a whole, continuing the overall positive momentum that has been building since last summer.

However, slower-than-anticipated recovery in the national economy, concerns about the debt ceiling prior to reaching the recent agreement, and a sudden halt in job creation have restrained demand for office space.

According to Colliers International's Second Quarter 2011 North America Office Highlights report, the U.S. office market recovery will likely continue to be uneven in nature and fairly volatile.

New York, Washington, D.C., San Francisco and Seattle are the clear leaders in terms of demand, buoyed by educated workforces and further reductions in new construction starts, limiting supply. Yet Boston, Dallas, Denver, Houston, Philadelphia, Raleigh, San Diego, San Jose and West Los Angeles are all seeing modest gains in occupancy.

Office vacancy rates were essentially flat overall, dropping just slightly quarter over quarter to 15.28 percent. National Central Business District (CBD) vacancy was healthier at 13.84 percent compared with the suburban markets at 16.00 percent.

Meanwhile, the U.S. registered 9.9 million square feet of positive net absorption, the fifth consecutive quarter of rising occupancy, with a flight to quality particularly evident in many markets.
The nearly 10 million square feet was a significant improvement from the first quarter, when occupied space increased by only 4.2 million square feet, and slightly more than twice the absorption recorded a year ago when occupied space expanded by 4.9 million square feet.

After a small increase in the first quarter, both CBD and suburban rents drifted lower in the most recent three-month period. Second-quarter data shows Class A CBD rents decreased by 1.5 percent to average $38.98 per square foot, with Class A suburban rents dropping 0.7 percent to average $26.06 per square foot.

 Somewhat positive is the seventeen-month-long gain in private-sector employment, although recent data shows a slowdown in that part of the labor market as well.

 One bright spot remains: office-using employment was reasonably strong during the April-June period, highlighted by professional and business employment in particular, up 2.9 percent year-over-year (June).

Taking the various economic factors and real estate fundamentals in total, widespread rent increases are unlikely to occur this year and may not materialize until well into 2012.

"The national office market has been improving overall, and though the recovery has slowed of late, the long-term indicators are strong," said Dylan Taylor (top right photo), chief executive officer for Colliers International in the U.S.

"Gateway cities like New York, Washington, D.C. and San Francisco continue to drive the national real estate sector, with absorption gains strongest in those markets and a feverish appetite among investors from around the globe looking to acquire assets in these urban markets."

"The national real estate market was in the midst of a modest recovery, but recently hit an unexpected soft patch," said Ross Moore (top left photo), chief economist for Colliers International.

"The most pressing question we face is how long the slowdown will last. There are many economic variables at work, both nationally and overseas, impacting the U.S. market."

Additional highlights from the full research report, which analyzed the sixty-two largest office markets in the nation, are listed below:

  • The largest year-over-year percentage increases in average asking rents
  • were reported by Charleston (19.8%), San Francisco (10.8%), Manhattan's
  • Midtown South (9.3%), Washington, D.C. (7.7%) and Seattle/Puget Sound
  • (7.4%).
  • San Jose, Dallas, Atlanta, San Diego, San Francisco Peninsula, Denver,
  • Houston and Raleigh/Durham were the Q2 leaders in suburban market
  • absorption.
  • Continuing a trend seen over the past few quarters, Class A buildings
  • continued to attract "move-up" tenants: Class A absorption totaled 8.5
  • MSF, or nearly 86 percent of overall absorption.

  • After a modest increase in Q1, second-quarter office completions totaled
  • just 3.9 MSF--returning to levels recorded during Q4 2010. Construction
  • underway increased by almost 4.7 MSF relative to Q1, with 30.4 MSF in
  • various stages of development at the end of Q2, although construction
  • activity remains exceptionally low by historic standards.

Additional data and research are available in the full report.

CONTACT: Richard Mulieri, The Marino Organization, +1-212-889-0808,; Russ Colchamiro, The Marino Organization, +1-212-889-0808,

NAI Realvest Brokers Sale of Ormond Beach, FL Development Site for a New Tire Kingdom

 ORLANDO, FL – NAI Realvest recently negotiated the purchase of a 1.25-acre retail development site for a new Tire Kingdom store on Williamson Boulevard north of San Marco Drive in Ormond Beach. 

NAI Realvest principals Kevin O'Connor  (top right photo) and Matt Cichocki (lower left photo)  brokered the transaction on behalf of the Charlotte, N.C.-based buyer, Pavilion TK-Ormond LLC, who paid $525,000 for the retail parcel.   Williamson Blvd. Investments, LLC of Ormond Beach is the seller.

 The buyer will be developing a 7,000 square foot Tire Kingdom store on the property.
This is the tenth Central Florida Tire Kingdom location secured by the NAI Realvest team of Cichocki and O’Connor.

For more information, contact: 
Kevin O’Connor or Matt Cichocki, Principals NAI Realvest, 407-875-9989  or;   
Patrick Mahoney, President, NAI Realvest 407-875-9989;  
Beth Payan or Larry Vershel, Larry Vershel Communications, Inc.  407-644-4142  

When Asking for Money, Senior Housing and Healthcare Borrowers Must be Prepared to Provide Needed Information, Expert Suggests

CHICAGO, IL--In a tight credit market, it’s inevitable that lenders will sometimes be forced to give borrowers news they’d rather not hear.

For example, no one wants to hear that capital sources they have been able to rely on in the past are no longer an option. Or that lenders have tightened underwriting standards and are now offering less on the appraised value of the property.

Another type of bad news borrowers may receive is that their lender will need even more descriptive information and data than already has been provided.

Cambridge Realty Capital Companies Senior Vice President Sampada D’silva (top right photo) says borrowers seeking capital in today’s marketplace must be prepared to thoroughly explain their business plans and motives. The need lenders have for information may seem insatiable at times.

Cambridge is one of the nation’s leading senior housing/healthcare lenders, with more than $3 billion in closed transactions over the past 15 years. The company has consistently ranked among the nation’s leading FHA-approved HUD lenders.

In the current cycle, popular HUD 232 financing has emerged as the lending product of choice for senior housing/healthcare borrowers. With these loans there is effectively a two-tiered underwriting process -- by the FHA-approved HUD lender initially, and later by HUD during the application approval process.

With HUD struggling to keep pace with a tsunami of loan applications, the timetable for processing loans has slipped, which exacerbates the underwriter’s need to move forward with current information, D’silva said.

For the lender, the primary underwriting concerns are the historical cash flow of a facility and occupancy. Typically, 12 months of trailing financials are needed, and occupancy must be at acceptable standards defined by HUD.

Up until the time the application is submitted, financial and occupancy data must be monitored and updated with the most recent trailing 12 months numbers to support the loan request.

D’silva says a debt service coverage ratio for the property should be met. And there should be an upward trend for these numbers as well as for occupancy.
If a state survey result shows any deficiencies, a plan of correction must be submitted. Proof of insurance that meets HUD standards must also be presented.

To guide borrowers, some lenders post a checklist of documents needed by underwriters. It is important to submit the requested information in the most timely way possible, she said.

Evan Washington
Phone: (312) 521-7604
Fax: (312) 357-1611

Cousins Reports Results for Second Quarter of 2011

ATLANTA, GA --  Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended June 30, 2011.

“This was another solid quarter with continued leasing momentum,” said Larry Gellerstedt (top right photo), CEO of Cousins. “We’re seeing an overall increase in investment opportunities and are particularly excited about our Emory Point mixed-use development.”

  • Funds From Operations (FFO) of $0.11 per share.
  • Commenced Emory Point mixed-use project.
  • Leased 424,000 square feet of office and retail space.

For a complete copy of the company’s news release and financials, please contact:

Gregg D. Adzema, Executive Vice President and Chief Financial Officer
Cameron Golden, Director of Investor Relations and Corporate Communications

New Condo Sales Near $4 Billion In Sunny Isles From Boom Years

MIAMI, FL--The South Florida condo boom has generated nearly $4 billion in developer sales of newly created units in the barrier island city of Sunny Isles Beach as of June 30, 2011, according to a new report from

Between 2003 and the second quarter of 2011, developers have sold more than 5,500 condos in the Northeast Miami-Dade County city of Sunny Isles Beach for a total of $3.96 billion, according to an analysis based on the Condo Vultures® Official Condo Buyers Guide To Sunny Isles Beach™.

Despite the sales velocity, more than 850 condos still remain unsold in Sunny Isles Beach as of the end of the second quarter of 2011, according to an analysis of Miami-Dade County records.

"The South Florida condo boom changed the landscape of Sunny Isles Beach forever," said Peter Zalewski (middle right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

 "Sometime in the third quarter of 2011, developer sales should surpass $4 billion in transactions to move the Sunny Isles Beach market that much closer to selling out the massive amount of inventory created during the most recent go-go period of condo construction in South Florida.

”Once the developer inventory overhang is finally absorbed, the Sunny Isles Beach market will enter a new phase in its maturation process." is scheduled to profile the latest condo trends in the second quarter of 2011 in the seven largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.
Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at

Second-Quarter 2011 Operating Results Announced by National Retail Properties Inc.

ORLANDO, FL,  Aug. 4, 2011 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and six months ended June 30, 2011.

National Retail Properties also announced increased 2011 FFO guidance of $1.50 to $1.53 per share before any impairment expense and estimated AFFO to be $1.64 to $1.67 per share.

The change in guidance is primarily related to projected volume and timing of property acquisitions. This guidance equates to net earnings before any gains or losses from the sale of real estate of $0.91 to $0.94 per share plus $0.59 per share of expected real estate depreciation and amortization.

The guidance is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the company’s reports filed with the Securities and Exchange Commission.

Craig Macnab (top right photo), Chief Executive Officer, commented: “Operating results and acquisition activity have been encouraging in
the first half of 2011 and visibility for the second half looks solid.

 “We were pleased to complete capital markets transactions during the second quarter that will provide additional capacity to fund acquisitions and reduce our debt costs.

“ More recently, we were very glad to announce an increase in our third quarter dividend which will pave the way for 2011 to be the 22nd consecutive year in which the annual dividend per share has increased.”

For a complete copy of the company’s news release and financials, please contact  Kevin B. Habicht, Chief Financial Officer, (407) 265 7348

NAI Realvest Negotiates New 5.5-Year Lease of 5,473 SF of Class A Office space in Maitland, FL

MAITLAND, FL --- NAI Realvest recently negotiated a 5.5-year lease agreement for 5,473 square feet of Class A office space at 2200 Lucien Way in Maitland.

 Mary Frances West (top right photo), CCIM NAI Realvest Senior Broker Associate and Tom. R. Kelley (lower right photo), CCIM, a principal in the firm, negotiated the transaction representing the landlord Alliance Lucien Way, Inc. based in Warrington, Pa

 The new tenant, Workstream USA, Inc. is a local management consulting firm that helps companies cost-effectively maximize workforce productivity.

For more information, contact
Mary Frances West CCIM, NAI Realvest, 407-875-9989;  or
Tom R. Kelley II CCIM, Principal, NAI Realvest, 407-875-9989,;
Patrick Mahoney, President, NAI Realvest 407-875-9989
Beth Payan, Larry Vershel Communications 407-644-4142

NAI Realvest Negotiates Four Leases totaling 20,834 SF at Goldenrod CommerCenter in Orlando

 MAITLAND, FL – NAI Realvest recently negotiated four lease agreements for a total of 20,834 square feet of industrial space at the Goldenrod CommerCenter (top left photo).

 Michael Heidrich, a principal in the firm, brokered all four transactions on behalf of the landlord, COP-Goldenrod, LLC of Maitland.

Central Florida Indoor Sports Center leased 12,216 square feet for three years and two months; Green Planet Landscaping & Irrigation, Inc. leased 4,412 square feet for two years; Calderon Automotive Repair Services, Inc. leased 2,206 square feet for three years, one month and Carl’s Tropical Tint renewed its lease of 2,000 square feet for two years.

Goldenrod CommerCenter located at 1460-1476 N. Goldenrod Rd. in Orlando is currently 90 percent leased. 

For more information, contact
Michael Heidrich, Principal, NAI Realvest 407-875-9989 or
Patrick Mahoney, President, NAI Realvest 407-875-9989
Beth Payan, Larry Vershel Communications 407-644-4142

NAI Realvest Principal Michael Heidrich Optimistic About Real Estate Market, Sees Jump in Leasing Over Past Six Months

MAITLAND, FL. – Michael Heidrich (top right photo), principal and vice president at NAI Realvest in Maitland, is optimistic about the future of commercial real estate in the Central Florida region.

 Heidrich, who joined NAI Realvest 21 years ago and focuses on land sales and industrial properties, has a broad view of the Central Florida market: all told, he has brokered more than 2,500 property sales and leases valued at more than $750 million.

 Since Jan. 1 of this year, Heidrich has brokered 47 property sales and lease agreements that total some $8,205,000 including industrial building sales that total almost $5 million.   

But it’s leasing activity that has Heidrich’s attention now.

 “I think we’re seeing an increase in property leasing right now, Heidrich said. “We’ve been waiting for it because the economic cycle has created significant pent-up demand in the industrial sector and to some extent in office and retail as well,” he said.

 Over the past 60 days, Heidrich said leasing activity has picked up.

For more information, contact
Michael Heidrich, Principal, NAI Realvest 407-875-9989 or
Patrick Mahoney, President, NAI Realvest 407-875-9989
Beth Payan, Larry Vershel Communications 407-644-4142

Hines Completes Two Major Transactions at Atlanta Financial Center in Buckhead, GA

ATLANTA, GA - The Atlanta office of Hines, the international real estate firm, announced today it has executed two major tenant lease expansions and extensions in Atlanta Financial Center.

 The transactions, one with a premier Atlanta law firm and the other with a well-respected financial advisory firm, bring the occupancy of Atlanta Financial Center (top left photo) to nearly 85%.

 Located in the heart of Buckhead, the 904,499 RSF, 3-building complex is one of the most recognizable in all of Atlanta. Location in Atlanta's financial district, superior amenity offerings, and improvements to the project's common areas, coupled with the strength of sponsorship, have enabled the Atlanta Financial Center to capture more than its market share of absorption during the severe economic downturn.  

Morris Manning & Martin, LLP, the international law firm, has signed a fifteen (15) year lease extension which includes an expansion of Morris Manning & Martin's occupancy in the complex to a total of 118,281 square feet.

  SunTrust Robinson Humphrey, Inc., the national, full-service corporate and investment banking firm, has signed a lease amendment to expand into an additional 137,596 square feet of space, increasing their total occupancy in the complex to 229,894 square feet.  SunTrust Robinson Humphrey's lease term will be re-set to nearly eleven (11) years.

Morris Manning & Martin was represented in lease negotiations by Gannon Shepherd and Duncan Gibbs of Jones Lang LaSalle. 

SunTrust Robinson Humphrey was represented in lease negotiations by Dom Wyant, Brad Armstrong and Chris Wagner of Jones Lang LaSalle.  Hines was self-represented by John Heagy, Tori Kerr, Brian Eichenseer and Scott Martin.

 "The Atlanta Financial Center has been a great location for us. We are excited this process has worked out so well," said Louise M. Wells (lower right photo), Managing Partner of Morris, Manning & Martin. 

"With key practice areas that include, among many others, commercial real estate, commercial finance, corporate technology, and energy and infrastructure finance, as well as having daily interaction with leading financial institutions, we are well-suited to be located in the 'financial center.'"

Laura Dudebout
O: 404.965.5023
C: 678.642.4301

MBA Reports Second Quarter Commercial/Multifamily Mortgage Lending Up 107 Percent from Last Year; Up 52 Percent from First Quarter 2011


 Washington, DC (Aug. 4, 2011) - Second quarter 2011 commercial and multifamily mortgage loan originations were 107 percent higher than during the same period last year and 52 percent higher than  the revised figures for the first quarter of 2011, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

 "Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010," said Jamie Woodwell (top right photo), MBA's Vice President of Commercial Real Estate Research. 

"Greater stability in property fundamentals and prices, and an improving sales market, are providing greater clarity for borrowers and lenders alike. 

“Property values and interest rates - coupled with job growth, consumer spending, household growth and other macro-economic trends that drive demand for commercial real estate - will be keys to how property owners seek and qualify for mortgage financing going forward."

 For a complete copy of the company’s news release, please contact
Matt Robinson,  (202) 557-2727