Las Vegas battered commercial real estate market is showing signs of life but remains a long way from full recovery.

Last year, investors snapped up properties, landlords signed new tenants, industrial buildings sprouted and developers pushed ahead with big retail projects.

Much of the same is expected this year, although the valley still faces big obstacles. Lease rates are low, vacancy rates are far above the national average, and despite some notable projects, development is relatively limited. New businesses are moving to Las Vegas and taking over empty real estate, but most local companies arent expanding and dont need additional space.

And the valleys unemployment rate remains high. In November, it was 8.6 percent, well above the 6.6 percent national average.

What more is in store for 2014? Here is a look at how the office, retail, apartment and industrial sectors might fare:

Despite meager improvements last year, Las Vegas still has one of the worst office markets in the country.

The city had a 21 percent vacancy rate during the fourth quarter of 2013, down slightly from 22 percent a year earlier, according to brokerage firm Colliers International. Research firm Reis Inc. put the valleys fourth-quarter vacancy rate at 26 percent, the second-highest in the country.

In 2005, during the boom, the rate was 8 percent.

The average asking rent was $1.87 per square foot last quarter, unchanged from a year earlier, Colliers said.

The market is far from dead, though.

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2014 real estate predictions: What’s on tap for housing, retail, office and industrial space this year

Veggie Wagon owners April Sussman, left, and Max Sussman unload produce for their new walk-in cooler at the store in Carolina Beach, North Carolina Thursday, January 9, 2014.

Loyal customers of The Veggie Wagon likely won't notice anything different at the Carolina Beach store, but many changes have been made behind the walls of the store's retail space.

In December, owners Max and April Sussman started work to replace their shingles.

Three weeks and thousands of dollars later, the business's roof has been replaced and its kitchen space has doubled.

"This was not planned," said Max Sussman.

The business which sells fresh produce, bread, milk and wine among other things had seemingly outgrown its space when the owners decided to commit to expanding their operations space in the back. The South Lake Park Boulevard store's renovations included converting the existing freezer to more processing space and building a new walk-in freezer.

While the three weeks of construction were chaotic, according to Max and April, the end product is worth it for them and employees.

"This gives us a dedicated gluten-free space," said Max, adding that space also will be used for wrapping and packaging the foods they make in-house.

For Axton Sparks, who leads production for the business, it means he'll have a dedicated space for lots of cooking, including pulling fresh mozzarella cheese like he was doing Thursday.

"This is going to be great," Sparks said as he dumped hot water over crushed mozzarella curds. "We're going to be able to move."

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Carolina Beach's Veggie Wagon expands to meet demand

After a tough few years, business space has become a prized commodity in and around Bakersfield, with demand for some property exceeding pre-recession levels.

Led by warehouse work and other industrial activity, the area's commercial real estate market is posting across-the-board improvement in vacancy rates. Some developers have responded by building, or proposing to build, new industrial space, offices and retail space.

The local market is almost superlative by one measure: Bakersfield's 4.1 percent warehouse vacancy rate at the end of September was the nation's third-lowest, behind only Honolulu and Los Angeles, according to Colliers International.

"Bakersfield is proving to be the gem of the Central Valley," Bakersfield industrial real estate broker Wayne Kress noted in an email highlighting local strength in energy, logistics and agriculture.

The tightening market speaks well of Bakersfield's economic prospects. While not all the property uses are part of high-paying industries, they nevertheless contribute jobs that support local services and bolster the housing market, which, in turn, generates additional employment.

"In the short term, very low (industrial) vacancy rates like we are now experiencing are a harbinger of large-scale construction projects that will bring jobs, wages and (economic spillover) effects," Cal State Bakersfield economics professor Mark Evans noted.

"In the long run, these new properties provide the infrastructure that is essential to attracting new companies that further build our economic base in areas such as logistics and energy-related support services."

Even retail, the weakest category of Bakersfield's commercial real estate market, is posting substantial gains from the depths of 2010 and 2011. Properties left vacant by the recession are beginning to fill up, and chains such as Walmart are poised to expand locally.

This sort of staggered progress is to be expected, said Bakersfield commercial broker Anthony Olivieri. Jobs generated by industrial and office activity tend to feed the home market, which he said is what outside retailers study when making decisions about where to grow.

"The big picture is that retail does trail, generally, the job creation out of the industrial sector and the office sector," Olivieri said.

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Businesses snap up commercial space

Work continues on the Texas Roadhouse restaurant on Friday, December 6, 2013, at Tikahtnu Commons. The restaurant is slated to open in February of 2014.

ERIK HILL Anchorage Daily News Buy Photo

Anchorage logged $631 mil- lion in new building permits in 2013, a 40 percent increase over 2012 construction, according to data presented by architect Brian Meissner at the Building Owners and Managers Association's annual commercial real estate forecast luncheon Friday.

"2013 was as big as the years before the bust," Meissner said.

Major construction projects under way around the city include hotels, office buildings and retail space.

Commercial vacancy rates throughout the city generally went down in 2013, said Brandon Walker, an associate at Pacific Tower Properties in Anchorage. Retail vacancy rates are just more than 4 percent, lower than the national average of 7.7 percent, he said.

National retailers that set up outlets in Anchorage in 2013 included cosmetics giant Sephora and designer Michael Kors. Walker said a number of other national brands have plans to open in here in 2014: Cabela's, Bass Pro Shops, Hard Rock Cafe, Texas Roadhouse and Tilted Kilt Pub and Eatery.

Industrial vacancy rates fell below 2 percent in 2013, Walker said.

Speaking of the city's available commercial properties, Walker said, "Much of the inventory right now is plagued by obsolescence. This is limiting the already limited supply of properties."

Fortunately for the city's commercial tenants, Walker said, they haven't seen an upswing in rents as a result of the decrease in vacancies.

Original post:
Commercial property prices hold up despite new construction

A sprawling parking lot across the street from Staples Center in downtown Los Angeles has been sold to local investors who plan to build a large-scale residential and retail complex perhaps including a hotel.

It was the second sale of a parking lot in the area around Staples and the L.A. Live entertainment complex in recent weeks as real estate development in the neighborhood south of downtown's financial district picks up speed.

The latest sale was a 2.7-acre parcel at 12th and Figueroa streets that has city approval for construction of apartment or condominium towers above stores and restaurants, real estate broker Adam Tischer of Colliers International said.

Tischer is an advisor to the seller, L&R Group, which is the parent company of Joe's Auto Park. The broker declined to name the three buyers, but other downtown property experts not authorized to talk about the deal identified one of the new owners as David Y. Lee.

Lee's Los Angeles company, Jamison Services Inc., is one of the largest office landlords in Southern California.

L&R paid $31 million for the property in 2010 and hadn't planned to sell it, but a trio of local buyers offered to pay substantially more than twice that amount, Tischer said. He declined to reveal the exact price.

The parcel, which was once owned by condominium developer South Group, has preliminary approvals for two high-rise towers of about 35 and 27 stories housing 648 residential units. About 40,000 square feet of space for stores and restaurants would be available for rent at street level.

The new owners may seek a variance from the city that would allow them to use some of the approved 863,000 square feet of development space as a hotel and perhaps accommodate more retail space, Tischer said.

"They are eager to get started and hope to be under construction this year," he said.

The other Staples area parking lot to be sold recently was a 4.6-acre site just to the north at 11th and Figueroa streets. Chinese property developer Oceanwide Real Estate Group acquired the land now used as a parking lot from New York landlord Moinian Group.

Originally posted here:
Investors buy parking lot across from Staples Center

RANDOLPH TWP. Local officials are expecting a scurry of activity on some new and some long-pending development projects that they say will increase tax ratables thereby spreading the property tax burden over a larger base.

Following her election as deputy mayor at the annual reorganization meeting of the Township Council, held on Wednesday, Jan. 1, Joanne Veech outlined the progress of those projects and offered a recap of more than 3,500 acres that has been preserved as open space to date.

Theres an amazing balance between the two that we in Randolph enjoy - smart development and open space, said Veech.

Veech said several new or expanded commercially developed properties are expected to advance during the coming year.

The Grecco property, also referred to as the Shoppes at Randolph, on Route 10 with 80,000 square feet of retail space is still searching for the right anchor store tenant and will begin construction once a lease is signed, said Veech.

An application for a new Walgreens store adjacent to the Randolph Diner on Route 10 has begun the Planning Board review process.

At the same time, existing businesses along the Route 10 corridor are planning to expand their operations, such as the Performance Ford dealership.

The new commercial center, Randolph Commons, behind the Randolph Diner, was the first phase of redevelopment for this highly visible Route 10 corner, said Veech.

Phase 2, the reconstruction and expansion of the diner building, is scheduled to undergo construction in 2014.

The developers of Brightview, a125 independent and assisted living unit development planned on Quaker Church Road just behind Route 10, expect to break ground this winter with an estimated 15-month completion date.

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Open space, development on tap in Randolph

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Ive always been resistant to making New Year'sresolutions. Im not really sure why. Maybe it seems clich; maybe Im annoyed that my yoga classes are now swamped withpeople who have made resolutions to be more healthy, balanced and zen in the new year. But this year, I am making a new years resolution of a professional nature. Arecent studyfoundthat you are 42 percent more likely to achieve your goals by writing them down, so here...

USGBC has started exploring how to clearly link the market transformation that the green building movement has inspired to its opportunity to create an equallytransformationalimpact on human health. InHealth is a Human Right. Green Building Can Help, a report from USGBCs Green Building & Human Health Summit in early 2013, we examine ways to promote and protect human health in relation to the built environment. Additionally, we have put forth a set of...

In case you missed the Greenbuild excitement, AZURE magazine has you covered. Here were their biggest takeaways from the show: The Speakers Alongside the two big political stars who delivered keynote addresses former Secretary of StateHillary Clintonand statisticianNate Silver Greenbuilds Master Series of lectures featured architect Edward Mazria, who announced the official launch of2030palette.org. The new website provides a wealth of...

This fall, the Center for Green Schools received another wave of impressive applications from around the country for our Trailblazing Teacher Awards - a small grant that we give out to deserving teachers to use toward an environmental initiative in their classroom. The creativity and dedication that shows through each of the educators applications is humbling and inspiring (its no secret that our staff love to be picked as the review committee for these awards). For the second...

Heres our weekly collection of green building clips: Achieving sustainability, Grocery Headquarters. USGBC Vice President of Product Management Lisa Stanley discussed how grocery stores are finding value using LEED, but more work needs to be done. My Green Policy Wish List for 2014, Building Green. Enhanced building codes to heighten resilience in the built environment are high on Alex Wilsons list. Record-Breaking Land Deal Completed in Central L.A., Set to Become the Site of New...

January 1st quarterly addenda to the LEED rating systems and reference guides are now available. Use the credit library to access the new LEED Interpretations. Access LEED Interpretations INTERPRETATIONS There are 71 new LEED Interpretations (10292, 1029810367), including 65 for Homes and Multifamily Midrise (100310367). Here are some highlights: Demonstrating compliance for LEED O+M: Existing Buildings SSc8: Light Pollution Reduction by following values listed in LEED BD...

In regions where words like sustainable and green have difficulty gaining traction, supporters of green building look to alternative methods of getting the message out. TheUSGBC Georgia Chapters 2013High Performance Healthy Schools Summitlooked to a broad audience of parents, students, and educators to address a growing need for healthier learning spaces for the states children. The 2013 summit attracted well over 200...

I experienced my first Greenbuild this year and had no idea what to expect. As the manager of our international marketing and communication efforts, I found it to be an exhilarating experience. A whirlwind of passion, activity and commitment. At USGBC we often speak about how LEED is global language. A language that allows us to distribute intelligence throughout the world. A language that allows us to compare how a LEED-certified building in Beijing is performing with one in Dubai, or Chicago...

Greenbuild 2013 meets Greenbuild 2014 when the Philadelphia Eagles meet the New Orleans Saints in the first round of the NFL playoffs this weekend, and much of the green building community will be cheering for the team in green. Were not partial to the disruptive offense of rookie coach Chip Kelly. And we certainly have no gripes with the Saints, who had a strong presence at this years Green Sports Alliance Summit. Its that Philadelphia's Lincoln Financial Field, home of...

With only a few short weeks before the New Year, the House and Senate completed a series of important legislative milestones including the bipartisan budget deal. With this budget deal in place, the House and Senate Appropriations Committeewill begin to formally negotiate over the holiday recess by dividing up some $498.1 billion in domestic discretionary spending. They will have until January 15th to negotiate aspendingpackage to replace the expiring continuing resolution...

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Shopping center vacancies in Dallas-Fort Worth have dropped to the lowest level in almost 10 years, thanks to a combination of strong leasing and only modest retail construction last year.

Our occupancy rate is now 90 percent. This has been a goal for our marketplace, said Bob Young, managing director of Dallas retail real estate firm Weitzman Group. We are backfilling existing retail space at a good clip.

This is a good turnaround from 2010, when we faced hundreds of thousands of square feet of vacant space from defunct retail concepts, Young said Wednesday at Weitzman Groups annual retail market update. We cut our supply of vacant boxes almost in half in the last two years.

The number of large vacant retail spaces in the D-FW area went from about 140 in 2011 to fewer than 70 last year.

Every well-located space is seeing activity or offers, Young said.

Net retail leasing in the D-FW area added up to about 2.7 million square feet in 2013.

In the last four years, shopping center and retail building vacancies in North Texas have fallen by about 4 million square feet.

At the same time, a modest amount of new shopping space has been added to the market.

In 2013, developers and retailers opened less than 2 million square feet of new store space in D-FW.

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D-FW shopping center vacancy drops to near decade low as ...

GRAND RAPIDS, Mich.Plans are moving forward for a $45 million mixed-use development project to bring more office, retail and living space to Downtown Grand Rapids.

The Downtown Development Authority approved the project, headed by Orion Construction. Its grown to 11 stories and 60 thousand square feet; larger than the original $28 million, five-story project presented last August.

This is a tough enterprise to do, John Wheeler with Orion Construction said last August.

Tough to get financed. Theres not a lot of comparable. We`re filling a need, we`re not creating a want. There are people who want to live down town. They want to park in the basement, take the elevator to the top floor. They want an experience to stay in their building, get out walk around, do the local shopping downtown instead of going to the suburbs. We`re going to provide those opportunities.

Much of the expansion is due in part to a new tenant, The Miller Johnson Law Firm, who is moving from the Calder Building on Monroe.

The project will now have space for 300 office employees, more than 100 residential units and ground level retail and restaurant space. Because the DDA expanded their tax increment financing by about a half million dollars Wednesday morning, Orion Construction plans to break ground this Spring.

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Original post:
Arena Place Plans Move Forward