Heather Densmore Shover Joins Grubb & Ellis's Dallas Office as Vice President, Agency Leasing

DALLAS (Feb. 2, 2009) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Heather Densmore Shover (top right photo) has joined its Dallas office as vice president, Agency Leasing where she will primarily focus on agency leasing in the far north Dallas submarket.

“Grubb & Ellis is dedicated to building the most talented and hard working team of professionals in order to provide our clients with the finest service and highest value in the commercial real estate arena,” said Moody Younger, executive managing director of Grubb & Ellis’ Texas operations. “Heather exemplifies these qualities and is a tremendous addition to our team in Dallas.”

Since assuming his role with Grubb & Ellis in April 2008, Younger has recruited 10 experienced transaction professionals to the company’s Dallas office.

Prior to joining Grubb & Ellis, Shover spent nearly three years as a senior associate at Stream Realty Partners L.P., a local full-service real estate investment, development and services company . Prior to entering the commercial real estate field, she was a senior consultant at Deloitte Consulting LLP.

Shover received an MBA from the University of Texas, Austin.

Contacts: Julia McCartney, Damon Elder Phone: 714.975.2230; 714.975.2659. Email: julia.mccartney@grubb-ellis.com; damon.elder@grubb-ellis.com

Tilt-Con Completes Osceola, FL Emergency Communications Center

KISSIMMEE, FL – Altamonte Springs-based Tilt-Con Corporation completed the new 53,893-square-foot Osceola County Joint Communication Emergency Operations Center at 2588 Partin Settlement Road in Kissimmee, FL.

The project consisted of a 2-story building, chiller yard and command vehicle shelter.

Ranked as the nation’s largest tilt-up concrete constructor by Engineering News-Record magazine, Tilt-Con utilized its economical system for tilt-up concrete walls. Designed by Architects Design Group, Inc., Winter Park, FL, Tilt-Con’s scope of work included foundations, slab-on-grade and tilt-up concrete wall panels.


Contact: Kenneth H. Cristol 407-774-2515

Entrust's Mather Says Private Retirement Accounts Could Play Leading Role in U.S. Economic Recovery

LAKE MARY, FL --- Private retirement accounts such as IRAs, Roth accounts and 401K plans---the patient savings of a generation of workers---could pave the way to a quicker national economic recovery, says one of the nation’s leading fund administrators.

Glen Mather, (top right photo) president of Entrust Administrative Services, which provides IRA administrative services to over 2,000 account holders self-directed IRA funds in Florida valued at hundreds of millions of dollars, said private equity investments could fill the lending void left as the nation’s banking system recovers.

Most tax-deferred retirement accounts---Traditional IRAs, Roth IRAs, Seff IRAs and Simple IRAs, the preferred choice of small businesses---can be reformatted as self-directed IRA accounts that open the door to a wide range of investment opportunities, from stock markets to private lending for commercial or resort properties.

That, says Mather, represents enormous opportunities for investors---and a big boost for the national economy.

“In the U.S., IRAs is where the money is,” Mather said.

Bank startups, new companies seeking startup capital---they’re all looking at self-directed IRAs as potential funding sources,” he said.

Most IRA accounts are relatively small, Mather said. Entrust Administrative Services clients average about $100,000 per account, but many accounts total well into the millions of dollars.

“Cumulatively, IRAs represent enormous equity that has been traditionally undervalued by the financial markets,” Mather said. Younger account owners---Mather’s clients typically range from age 40 to age 65---are more astute about finance and the economy and tend to explore their options.

Retirement funds typically earn low but safe returns in the three-to-five-percent range, Mather said. But well-managed self-directed IRAs can earn tax-deferred returns in the 15-20 percent range when invested in real estate or similar vehicles.

“Real estate can be especially productive in this market,” Mather said.

“Smart investors who recognize that the real estate market is readjusting are lending about 50 percent of the new value in order to be on the safe side.

" If the worst happens and they foreclose, they own an asset at approximately half its current value that will produce substantial returns,” Mather said.

Mather said some self-directed IRAs are lending operating capital to businesses backed by accounts receivables.

“That has been a market traditionally dominated by banks and private equity lenders,” Mather said. “But more owners of self-directed IRAs are stepping in to fill the gap the banks have left,” he said.

For more information about this news release, contact:

Glen Mather, President, Entrust Administrative Services, Inc., 407-367-3472. gmather@entrustfl.com;

Larry Vershel, Larry Vershel Communications, 407-644-4142, Lvershelco@aol.com

Hawaii hotels slash rates

HONOLULU /PRNewswire/ -- According to online retailer Travel Hawaii LLC, Hawaii's hotels are slashing rates in a variety of ways in order to stimulate demand.

Combined with record low airfares to Hawaii, the overall cost of a Hawaii vacation has tumbled dramatically.

"3rd Night Free is the new norm," said John Lindelow, owner of Travel Hawaii.

"We track all the offers from Hawaii's hotels, and we now have 33 hotels offering 3rd Night Free.

"Combined with already discounted rates, this can make the cost of a hotel stay half of what it was a couple years ago at this time."

The Outrigger Hotel chain, (above centered photo) for example, is offering 3rd Night Free at 19 of its 23 Hawaii hotels and condo properties. All of the 3rd Night Free specials can be found on Travel Hawaii's special page at http://Travel-Hawaii.com/specials.html.

Some hotels have simply slashed their basic rates. The Sheraton Waikiki, (top right photo) for example, is selling Ocean Front rooms through Travel Hawaii for $206/night through mid-May. And the Outrigger Waikiki on the Beach has City View rooms for $161/night for all of 2009.

Record low airfares round out the equation, with fares from the East Coast well under $500 to Honolulu round trip, and those from Los Angeles under $350.

"So two people traveling from the East Coast and staying a week in an Ocean Front room on Waikiki would pay around $2400 for airfare and hotel," said Lindelow, "which is pretty astounding since this is normally the busiest, and most expensive, time of the year for the Hawaii tourism industry."

Founded in 1997 by computer scientist John Lindelow and travel agency owner Roz Rapozo, (bottom left photo)Travel Hawaii has become a leading Internet booking service for consumers wishing to vacation in Hawaii. Travel Hawaii maintains sophisticated online booking systems and databases focused on Hawaii travel.

For more information on 3rd Night Free rates at Hawaii hotels, visit http://www.Travel-Hawaii.com/specials.html.

HFF arranges $47.5M loan for SunTrust International Center in downtown Miami

MIAMI, FL – The Los Angeles and Miami offices of HFF (Holliday Fenoglio Fowler, L.P.) announced today that they have arranged a $47.5 million loan for SunTrust International Center, (top right photo) a 420,080-square-foot office tower in downtown Miami, Florida.

Managing director Todd Sugimoto (middle left photo) of HFF Los Angeles and managing director Fred Welker (bottom right photo) of HFF Miami worked exclusively on behalf of Guggenheim Real Estate LLC and its partner, Stiles Corporation, to secure the five-year, fixed-rate loan through a life insurance company.

Loan proceeds are replacing an existing loan that matured in January 2009.

SunTrust International Center is a 31-story marble and glass office tower located at the corner of Flagler Street and Southeast Third Avenue in downtown Miami, convenient to Metromover and Metrorail, Miami Dade County and Federal Courthouses, as well as Bayside Marketplace and American Airlines Arena.

Renovated in 2002, the property is 88% leased to tenants including Akerman, Senterfitt & Eidson; Bank of America; Rachlin, Cohen & Holtz; SunTrust Bank; and Walgreen’s Pharmacy.

On-site amenities include a deli; full-service dry cleaning; security card reader system for controlled access; duplicating, imaging and print shop; and UPS, Airborne Express, DHL and FedEx drop boxes.

“The capital markets are extremely difficult; however, this transaction proves that HFF is successfully completing larger debt transactions with the right combination of sponsorship, asset and capitalization,” said Sugimoto.

Guggenheim Real Estate manages an open-end diversified real estate portfolio.

Guggenheim Real Estate LLC is a dedicated real estate investment manager with offices in New York, Boston, Chapel Hill, Charlotte and San Francisco that provides investors with a diversified core-plus real estate portfolio across a wide spectrum of the real estate market, including REITs, direct properties, mezzanine debt and private funds.

Stiles Corporation is one of Florida’s largest full service real estate development companies and has developed more than 27 million square feet of office, retail and industrial facilities.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, loan sales and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

TODD SUGIMOTO, HFF Managing Director, (310) 407-2100, tsugimoto@hfflp.com

FRED E. WELKER III, HFF Managing Director, (305) 448-1333, fwelker@hfflp.com

KRISTEN M. MURPHY, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Realty Capital Markets Remain Disruptive, Says RECI

CHICAGO, IL, Feb. 2, 2009 - The realty capital markets remain disruptive, raising stress levels for borrowers with pending maturities.

Meanwhile, sellers are unable to generate liquidity as pricing volatility prevails.

Smaller transactions are more fluid with recourse requirements much more common as borrowers weigh their options using shorter-term debt.

Industry leaders expect minimal positive changes in short-term market dynamics as the financial sector digests unsettling news.

Starting this year, evolving trends are as follows:

* Minimum yield requirements - not spreads over benchmark indices --dictate loan pricing. Mortgage rates are somewhat stable, as lenders set floors on long-term fixed rate debt in the 6.25-to-7.5%+ range for most conventional properties.

* While rates are within historically favorable limits, continued tightening of other key underwriting parameters restricts meaningful funding volume. More constraints that are conservative include lower valuations, limited leverage, shorter amortization payment schedules, higher debt coverage and substantial escrow/reserve requirements.

* On the public market debt front, CMBS is unlikely to return in the foreseeable future - at least not in the current format. Balance-sheetlenders also struggle with the "denominator" effect, limiting over all funds available for real estate investment, as portfolios are devalued. Furthermore, real estate investments must compete with attractively priced stocks and bonds as astute fund managers hunt among abundant bargains.

* Mezzanine and opportunity funds offer capital, but underwriting is cautious and existing note sales compete for these funds. Pricing on mezz debt starts in the lower-teens.

* Transaction volume flirts with the lowest levels in decades as capital sources wait on the sidelines in hopes of finding the bottom. Substantial pricing discounts are expected throughout 2009, in any case.

* Equity returns are under upward pressure. Overall equity yields for Class A "Core" institutional properties trade from the low to middle teens; "Core Plus" assets trade within the upper-teen range and opportunistic ventures offer returns in excess of 20%.

* Given illiquidity within the equity markets with few comparable trades, numerous lenders are setting valuation parameters for debt fundings.

In general, the 8%-to-9%-capitalization-rate range is a popular appraisal benchmark for higher-quality commercial properties in most markets throughout the country.

Multifamily properties start at 7% cap rates, although limited trading volume prevents identifying clear and reliable pricing trends.

Jim Postweiler, (top right photo) advisory board member of the Real Estate Capital Institute, suggests, "Buyers and sellers are still reluctant to transact, mostly due to stingy debt markets. However signs of improvement are emerging as buyers realize few opportunities for core properties are available."

ABOUT US: The Real Estate Capital Institute(r) is a volunteer-based researchorganization that tracks realty rates data for debt and equity yields. TheInstitute posts daily and historical benchmark rates including treasuries,bank prime and LIBOR.

Furthermore, call the Real Estate Capital RateLine at7RE-CAPITAL (773-227-4825) for hourly rate updates. ###

The Real Estate Capital Institute(r), 3517 West Arthington Street, Chicago, Illinois USA 60624.

Contact: Nat Zvislo, Research Director. Toll Free 800-994-RECI (7324). director@reci.com / http://www.reci.com/

GVA Advantis Presents 4th Quarter Orlando Office Market Review

ORLANDO, FL--GVA Advantis presents its fourth quarter overview on the Orlando office market:

Clearly in the grasp of a long-lasting recession, Orlando’s office market is holding its own in this economy. Here is a look at how The City Beautiful fared at the close of the year compared with two prior years.

Interestingly, at least two fundamental measures saw slight progress or remained stable in 2008: asking lease rates and sublet vacancy rates. Investment sales are off around the country by approximately 75%, according to informed sources.

While enjoying a healthy increase from 2006 to 2007, Orlando suffered a 60% dip in sales for 2008 in transactions of properties over 10,000 SF.

The metro area’s office sector vacancy rate improved by 0.2% over the third quarter to a still-too-high 15.1% to end the year.

Individually, most submarkets remained fairly flat in terms of availability with the only significant activity happening in two regions: direct vacancy in the Airport submarket rose from a third quarter showing of 4.7% to 7.1%, with Class A available space more than doubling.

Disproportionate swings continue in Lake Mary/Heathrow/Sanford, which dropped five percentage points from 13.5% to 8.5% for the third quarter, but is now back up to 10.2%, with increases in availability among all classes, especially C space.

Net absorption suffered, adding another (121,316) for a YTD figure of (437,712). Five of 12 submarkets – Kissimmee/Celebration; Lake Mary/Heathrow/ Sanford; Northwest Orlando; University/Research; and Winter Springs/Oviedo – showed modest positive absorption for the year. However, it was not significant enough to override the other seven submarkets’ annual activity.

Overall sublet vacancy rates dropped significantly by almost 148,000 SF for the quarter, from 3.1% to a year-end total of 2.7%.

For a complete copy of the report, please contact:

Shelli H. Browning, Director of Marketing, Advantis Real Estate Services Company, 255 South Orange Avenue, Suite 750,Orlando, FL 32801. Office 407.849.6600. Direct 407.999.4775. Fax 407.849-6010.

E-mail sbrowning@gvaadvantis.com
http://www.gvaadvantis.com/

Premier Capital Arranges $7.1M Development Financing for Holiday Inn Express

BELLEVUE, WA., Feb. 2, 2009 – Premier Capital Associates, LLC, a national, full-service real estate investment company specializing in debt and advisory services for hospitality real estate, announced today that it had arranged and closed a $7.1 million financing transaction for development of a 77-unit Holiday Inn Express, located in Sequim, Washington.

The project is under construction and is expected to open later this year. “We are working in a very challenging financing market,” said Jeff McKee,(top right photo) managing director of Premier Capital Associates, LLC.

“The developer asked us to act as financial advisor for all aspects of the financing, which included all the detail work involved in the closing. This arrangement allowed the developer to focus more on the final design, permitting and construction aspects of the hotel while we dealt with the credit market turmoil.”

“The ownership group handed over all the financing responsibilities to Premier Capital Associates because of our strong hotel lending experience and longevity in the industry,” said Greg Morris, (bottom left photo) managing director of Premier Capital Associates, LLC.

“Construction financing is certainly the most difficult to arrange in today’s economic environment, but we were able to call upon our 25-plus years of hotel lending experience and work closely with the lender and owner to find a solution that provided adequate capital at a fair rate for this project.”

“Despite extremely difficult credit markets, capital remains available for patient, credit-worthy hoteliers and viable projects,” Morris noted. “Capital for transactions under $10 million for both acquisitions and refiancings are available at historically attractive terms. Larger deals and development transactions are more difficult, but can be negotiated.”

Premier Capital Associates, LLC, located in Bellevue, Washington, is a national, full-service real estate investment company specializing in debt and advisory services for hospitality and other income-producing commercial real estate, with relationships across the United States.

The company arranges debt for construction loans, acquisition, refinancing, and reposition financing.

For additional information, please contact either Jeff McKee at 425-957-0600 or Greg Morris at 425-957-0700. Or, visit the company’s Web site: www@premiercapitalassoc.com.

CONTACTS:

Jerry Daly, Chris Daly, (703) 435-6293. jerry@dalygray.com

Wyndham Hotel Group Appoints Human Resources Executive

PARSIPPANY, N.J. (Feb. 2, 2009) – Wyndham Hotel Group, the world’s largest franchisor of hotels, today announced the appointment of Kathleen Chiechi Flores (top right photo) as executive vice president of Human Resources.

Based in the company’s Parsippany, N.J. offices, Flores will be responsible for overseeing the development and execution of Wyndham Hotel Group’s global human resources strategies, including talent selection, talent management, workforce planning and administration.

She brings to the company more than 15 years of progressive human resources experience from a variety of industries including technology, healthcare, banking and telecommunications.

Prior to joining Wyndham Hotel Group, Flores was chief administrative officer of WhiteFence, an e-commerce company based in Houston, Texas. In that role, she oversaw the company’s legal and human resources teams and was responsible for risk management, compensation and benefits, talent acquisition, training and development, and organizational effectiveness.

Flores is a certified senior professional in human resources and holds a bachelor’s degree in economics from the University of California Irvine as well as a master’s degree in education from the University of San Francisco.

CONTACT:
Rob Myers, Communications Coordinator, Wyndham Hotel Group, 1 Sylvan Way, Parsippany, NJ 07054. PH +1 (973) 753-6590
rob.myers@wyndhamworldwide.com

Sarah's Beauty Supply Takes 1,706 SF in Lauderhill, FL

LAUDERHILL, FL – Deerfield-based Konover South, LLC, one of the Southeast’s premier retail developers, announced that Sarah’s Beauty Supply & Accessories has signed a lease for 1,706 square feet at its Publix-anchored, 85,000-square-foot Inverrary Falls retail center (top right photo) at Oakland Park Boulevard and Inverrary Boulevard in Lauderhill, FL.

Company leasing specialist Vivian Ricardo represented Konover South in the transaction.

Other major tenants include Bank Atlantic, Blockbuster Video, Footmart, Golden Krust, Gourmet China, and H&R Block as well as Little Caesar’s, Metro PCS, the UPS Store, Wachovia Bank and others.

Contact: Kenneth H. Cristol 407-774-2515

InterContinental CEO Sees up to $200M in Energy Savings at 4,000 Hotels

LONDON—InterContinental Hotels Group PLC, which calls itself the world’s largest hotel company based on its 4,000 global properties, is betting it can save up to $200 million in energy costs beginning this year with a new online system called Green Engage.

The system includes various savings tools from insulating a hotel’s hot water pipes to introducing a recycling program and switching to organic cleaning materials to appointing one of the employees as a green champion.

IHG CEO Andrew Cosslett (top right photo) says early trials show potential savings of up to 25%.

Developed by IHG, the system will be rolled out across the company’s seven brands following final trials which started last week in 650 hotels. Among the brands are Holiday Inn, Crowne Plaza and InterContinental.

Cosslett expects the system will be offered as an option to all of InterContinental’s 4,000 hotels from mid 2009.

The IHG ‘Green Engage’ software works by hotels directly recording data on site. The system automatically compares hotels of a similar nature across the world and lists a series of actions that each hotel can take to reduce waste and the consumption of energy and water.

“This is an important initiative for IHG, our hotel owners and our guests,” says Cosslett.

“Green Engage is a practical tool designed to help improve environmental performance, reduce costs and respond to our guests increasing awareness of this issue.

“Across our estate, we estimate Green Engage has the potential to drive up to $200 million of savings for our hotel owners and significantly reduce energy consumption.”

(Crowne Plaza Hotel, Downtown Washington, D.C., middle right photo)

Thomas J. Corcoran Jr., (top left photo) chairman of the Owners’ Association of InterContinental Hotels Group (IAHI) and owner of a number of hotels taking part in the Green Engage pilot, says, “Green Engage is not only good for the environment, but is also good for business.

“In the current economic climate and with rising energy bills, this tool will help us to identify significant cost savings. At the same time it delivers what our guests want – a greater sense of well-being and less impact on our planet when traveling.”

Corcoran says Green Engage “responds to growing levels of interest from guests who are looking for sustainable hotels that manage their environmental impact. As well as location, price and amenities, guests are now factoring in a hotel’s environmental credentials when booking a place to stay.”

(Holiday Inn Express & Suites, Branson, MO, bottom left photo)

IHG’s Cosslett says that “by utilizing ‘Green Engage’, hotels will now have for the first time, a comprehensive on-line system which gives them the means to:

“Measure their usage of energy and water, waste produced and their carbon emissions. They can then benchmark themselves against other hotels and set demanding, but achievable reduction targets.

“Manage the elements of their hotel that most impact the environment.

“Report on progress to date both internally and to guests and corporate clients.”
In 2008, IHG launched Innovation Hotel, an online example of what a future hotel might look like if it used new green technologies.

“Guests can provide feedback on which of these they feel are important, allowing IHG to consider how they can be implemented as part of the Green Engage program,” adds Cosslett. #

For more information about corporate responsibility at IHG, visit: www.ihg.com/responsibility

Gulf Building Corp. Completes New $16M, High-Tech Public Safety Complex at Big Cypress Seminole Community

BIG CYPRESS, FL /PRNewswire/ -- Gulf Building Corp. has completed the design and construction of the new 50,000-square-foot, $16 million Public Safety Complex at the Big Cypress Seminole Community, said John Scherer, Partner and Vice President of Construction.

Located in the heart of the Big Cypress Community on Josie Billie Highway, the new complex will house more than two-dozen members of the Seminole Tribe's Public Safety Department and equipment for both police and fire/rescue operations.

"We are especially proud to be involved in this project as this is a facility that will serve to safeguard a wonderful community of people," said Scherer.

"The new complex is an accomplishment in which everyone living there can take great pride."

Scherer said the two-story structure has an Old Florida architectural design and is painted naturalistic brown and beige colors that blend in with the surrounding beauty of the Everglades and the Seminole Tribe.

The complex houses the fire/rescue personnel on the north and the police personnel on south. In between is a large bay for emergency vehicles.

There are comfortable dormitories, stainless steel-equipped kitchens, break rooms, gymnasium, and training rooms throughout. The building will also prominently feature a new U.S. Post Office serving the Big Cypress community.

CONTACT: Media: Kevin Boyd, +1-954-288-9509, for Gulf Building Corp. Web site: http://www.gulfbuildingcorp.com/

Cole Whitaker of Hendricks & Partners predicts Orlando region on front end of upcoming rental apartment rebound

ORLANDO, FL - Rental apartment owners will be granting more concessions in the foreseeable future but conditions have positioned the Orlando region for a sharp turnaround once conditions improve, says one leading multi-family broker.

Cole Whitaker, (top right photo) who heads the Florida office of Hendricks & Partners, one of the nation’s leading service providers to the multi-family housing market, said the Orlando region was one of the top markets listed to rebound at the National Multi Housing Council’s annual meeting recently in Palm Springs, Calif.

“Orlando will be on the front end of the recovering markets in the U.S. once the recovery begins. The big question for everyone is when that will be,” Whitaker said.

The lack of new construction will help existing property owners in the long run, Whitaker said, and property sale transactions will continue as investors comb the region for choice properties.

But declining rent rolls, increasing CAP rates, tough new underwriting standards by both FREDDIE MAC and FANNIE MAE and the high cost of equity will make brokers’ jobs much more difficult.

“Unfortunately we will see some sellers and buyers continue to experience a gap between sales expectations and the cost of funds for apartment transactions,” Whitaker said.

“We foresee increased concessions to renters for the foreseeable future as competition for good tenants increases,” Whitaker said.

For more information, please contact:
Cole Whitaker, Partner, Hendricks & Partners, 407-256-9594
Larry Vershel, Larry Vershel Communications 407-644-4142

Kim Barkwell Named President of Ambling Management

Former COO Brings 25 Years Real Estate Experience

ATLANTA (Jan. 27, 2008) – Ambling Management Company, an affiliate of Ambling Companies, Inc. specializing in student, affordable and conventional housing, appointed Kimberly A. Barkwell (top right photo) president.

Barkwell is responsible for all facets of the company’soperations, including strategic planning, overall property management, new business development and company culture preservation.

“Kimberly has played an integral role in the growth and success of Ambling
Management Company for more than six years and is very deserving of her new title andresponsibilities,” said Mike Godwin, (middle left photo) president and CEO of Ambling Companies, Inc.

“Her leadership has made Ambling Management one of the most respected companies inthe industry, and we are excited to see where she will lead the organization in the future.”

Most recently, Barkwell held the position of chief operating officer of Ambling
Management Company.

With more than 25 years of experience in real estate property management, Barkwell previously served as regional vice president with Brisben Companies/National Realty Management where she directed the overall operations of the Northeast and Mid-Atlantic regions.

Prior to that, she worked with AIMCO/Insignia Management Group as both regional vice president and vice president of business development where she directed operations of large conventional and affordable residential portfolios of up to 21,000 units. Barkwell also held various roles with the Duddlesten Companies.

Contact: Bryan Harris, Jackson Spalding, (404) 874-7164; bharris@jacksonspalding.com

GVA Presents Richmond, VA Industrial Market 2008 Wrapup

RICHMOND, VA--Perry H. Moss, regional director, research, GVA Advantis, presents the 2008 review of the Richmond, VA industrial market:

MARKET SUMMARY

The market survived 2008, not the most pleasant of years. 2009 will be a continuation of last year.

The leasing market may show signs of continued sluggishness in 09 as the economic lag catches up to the industrial base.

The sales market on the other hand, which had a steep decline in 2008, will continue on the same path with the possibility of reaching a bottom by late 09.

MARKET REVIEW
2008 is over, it was challenging, and introduced market issues we haven’t seen in a long time.

The reliance of major corporate institutions upon federal funds and a virtual freezing of the credit market are two conditions that are rare, but far-reaching.

The industrial market suffered in the last 2/3’s of 2008, albeit not to the same degree as the office market.

It would be great to say that we’ve made it through 2008, and now the market can pull itself together and get back on a positive track.

2009 will be another challenging year. All market participants need to be prepared for a turbulent year.

Recurring trends for next year include: a continued shift in negotiating leverage towards tenants; willingness of landlords to make concessions to secure occupants; sale leaseback activity rising considerably; further declines in asset price points; and gradual deterioration of key fundamentals such as vacancy, absorption, and rental rates.

LEASING MARKET

Tenants are opting for renewals and shorter terms while pushing harder for concessions such as free rent and tenant improvements.

In 2009, landlords will be more willing to accept slightly lower rental income in order to provide occupancy to their assets. They will need the capital.

If owners attempt to tap into the near zero rate debt market, they will need evidence of their ability to re-pay the loan. This would be highly unlikely without a reasonable and reliable net operating income stream

SALES MARKET

2009 will be a great opportunity for well capitalized investors, those able to get financing, and bargain hunters.

Continued erosion of REIT and portfolio purchases will hold down volume for the next several quarters. Landlords will pay very close attention to the offer of sale leaseback opportunities as the infusion of capital will be of paramount importance.

Prices will fall in 2009, while cap rates rise. A mitigating factor for rising cap rates will be an erosion of operating income as reliable, long-term tenants will carry a tremendous premium due to their scarcity.

Contact: Perry H. Moss, Regional Director, Research, 804 644 4066, pmoss@gvaadvantis.com