NNN Lease Market News
Westfield Group (WDC) plans to start a 1 billion pound ($1.6 billion) redevelopment at a site it owns in London’s White City area adjacent to its shopping center, as it boosts its pipeline for projects amid a recovery in sales.
The company is now seeking public feedback on plans for the redevelopment, which will include 1,700 homes and about 48,000 square meters (516,668 square feet) of retail space, the world’s biggest shopping center operator by market value said in an e- mailed release.
Wednesday, June 29, 2011
Tuesday, June 28, 2011
The NNN Lease Lucrative Investor
NNN Lease Market
Calkain NNN Lease Expert and receive the answer to your question directly to your inbox! No need to search all over the internet for you answers, leave it to the experts.
Calkain NNN Lease Expert and receive the answer to your question directly to your inbox! No need to search all over the internet for you answers, leave it to the experts.
NNN leases are also unique in their duration. Unlike a typical residential lease that lasts only 6 to 12 months, a NNN lease lasts typically 15 to 30 years. This is a huge advantage for property owners who want consistency in the monthly payments and the security of not having to worry about the constant struggle of placing tenants. NNN leases also take into consideration inflation and typically include rent increase clauses through the life of the lease term.
Typical tenants for NNN leases are Walgreens, CVS, Social Security Administration, Arbys, Pizza Hut, 7eleven, Wells Fargo and many more. These well recognized companies are willing to participate in NNN leases, because owning all of their business locations is not advantageous to their business model or growth.Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in NNN lease, which many investors also call a corporate bond combined with real estate investments that still make sense today.
Owning a NNN lease property offers a long term lease with a corporately rated tenant, opposed to an individual tenant in residential real estate. The major benefit of a NNN lease is the consistent monthly return without the hassles of being a landlord.Thursday, June 23, 2011
Office Lease Market Trends Report
NNN Lease Office Market News
Calkain Research provides in-depth analysis of the market. Our intimate knowledge and years of experience in the market have given us the unique opportunity to provide thoughtful leadership and perspective.
San Diego Ofiice Market
Boosted by a relatively low increase in vacancies, San Diego County’s office market improved from 17th to 11th place. “San Diego leads the group of markets ranked just outside of the top 10 with above-average marks for several indicators, including its change in vacancy, concessions and new supply.
Orlando Office Market.
The submarket, which had a 20.1 percent vacancy rate in fourth-quarter 2009, improved to 17.4 percent in 2010’s fourth quarter, said a new report from Morrison Commercial Real Estate.
That compared with a fourth-quarter 2010 vacancy rate of 19.2 percent in the Orlando market as a whole, which was worse than fourth-quarter 2009’s 18.7 percent.
Chicago Office Market
Total vacancy in the Chicago area improved slightly in the first quarter of 2011, with the downtown office market recording 575,085 square feet of positive absorption and the suburban market 417,590 square feet of positive absorption, for vacancy rates of 16.14 percent and 22.63 percent respectively.
Four leases in the downtown market eclipsed 100,000 square feet, with KPMG LLP recording the largest new lease for 260,000 square feet at the AON Center. The largest new lease in the suburban market was CVS Caremark’s 119,245-square-foot lease at 2100 E. Lake Cook Road in Buffalo Grove.
Despite the increased leasing activity, overall asking rental rates continued to tick down. Class A space in the downtown market was $31.90, down slightly from the previous quarter, while Class B rates held steady at $26.44 and Class C was down to $21.79.
NJ Office Market
Office markets have been mixed but generally steady across the District in the first quarter of 2011. The office vacancy rate rose moderately in Manhattan and Long Island (where it reached a multi-year high), but was little changed in Northern NJ. However, asking rents in all these areas moved up, and landlords reportedly scaled back on concessions. In Westchester and Fairfield counties however, office markets showed further signs of softening, as vacancy rates rose and asking rents continued to decline modestly.
NYC Office Market
The Manhattan office market is flexinits muscles and is beginning to show signs of strength and improvement. SL Green Realty Corp., the City’s largest office landlord, just reported its fourth quarter earnings. A Crain’s New York Business article reported the company’s funds from operations increased to $74.7 million or 93 cents a share, up from $69.1 million or 87 cents a share from the year prior.
Washington Office Market
Unlike other parts of the country, the Washington office market is also fueled by a growing job market. The region has the lowest unemployment rate, 6.2 percent in August, among major metropolitan areas in the country.
Metropolitan Washington has added a net of 20,000 public and private sector jobs during the past year, according to the government. Growing payrolls often prompt employers to look for more space.
Still, some experts say several looming factors could put the brakes on the sector's recovery in the region.
The best office market remained Washington, D.C., and Detroit remained the worst.
Calkain Research provides in-depth analysis of the market. Our intimate knowledge and years of experience in the market have given us the unique opportunity to provide thoughtful leadership and perspective.
San Diego Ofiice Market
Boosted by a relatively low increase in vacancies, San Diego County’s office market improved from 17th to 11th place. “San Diego leads the group of markets ranked just outside of the top 10 with above-average marks for several indicators, including its change in vacancy, concessions and new supply.
Orlando Office Market.
The submarket, which had a 20.1 percent vacancy rate in fourth-quarter 2009, improved to 17.4 percent in 2010’s fourth quarter, said a new report from Morrison Commercial Real Estate.
That compared with a fourth-quarter 2010 vacancy rate of 19.2 percent in the Orlando market as a whole, which was worse than fourth-quarter 2009’s 18.7 percent.
Chicago Office Market
Total vacancy in the Chicago area improved slightly in the first quarter of 2011, with the downtown office market recording 575,085 square feet of positive absorption and the suburban market 417,590 square feet of positive absorption, for vacancy rates of 16.14 percent and 22.63 percent respectively.
Four leases in the downtown market eclipsed 100,000 square feet, with KPMG LLP recording the largest new lease for 260,000 square feet at the AON Center. The largest new lease in the suburban market was CVS Caremark’s 119,245-square-foot lease at 2100 E. Lake Cook Road in Buffalo Grove.
Despite the increased leasing activity, overall asking rental rates continued to tick down. Class A space in the downtown market was $31.90, down slightly from the previous quarter, while Class B rates held steady at $26.44 and Class C was down to $21.79.
NJ Office Market
Office markets have been mixed but generally steady across the District in the first quarter of 2011. The office vacancy rate rose moderately in Manhattan and Long Island (where it reached a multi-year high), but was little changed in Northern NJ. However, asking rents in all these areas moved up, and landlords reportedly scaled back on concessions. In Westchester and Fairfield counties however, office markets showed further signs of softening, as vacancy rates rose and asking rents continued to decline modestly.
NYC Office Market
The Manhattan office market is flexinits muscles and is beginning to show signs of strength and improvement. SL Green Realty Corp., the City’s largest office landlord, just reported its fourth quarter earnings. A Crain’s New York Business article reported the company’s funds from operations increased to $74.7 million or 93 cents a share, up from $69.1 million or 87 cents a share from the year prior.
Washington Office Market
Unlike other parts of the country, the Washington office market is also fueled by a growing job market. The region has the lowest unemployment rate, 6.2 percent in August, among major metropolitan areas in the country.
Metropolitan Washington has added a net of 20,000 public and private sector jobs during the past year, according to the government. Growing payrolls often prompt employers to look for more space.
Still, some experts say several looming factors could put the brakes on the sector's recovery in the region.
The best office market remained Washington, D.C., and Detroit remained the worst.
Wednesday, June 22, 2011
Commercial Real Estate Investors are Optimistic U.S. Recovery Will Continue
NNN Lease Market News
Commercial real estate investors are optimistic that a U.S. industry recovery will continue even as the economy shows signs of slowing.
A lack of new supply and low interest rates are helping to drive investor interest in commercial properties. Capitalization rates, which decline when real estate prices increase, fell in 27 of 31 markets surveyed.
Office properties led cap-rate declines in the second quarter, the report showed. The average cap rate for office buildings in central business districts was 6.95 percent, down 1.2 percent from a year earlier. Cap rates, a measure of yield, are net income divided by the sales price
Buyers are pursuing deals as the market improves, and concern that that the economic recovery will falter has deterred “very few” investors from acquiring assets.
There will be “very few additions” to the commercial- property supply in the near term, which will help absorb existing space and drive up rents as tenant demand increases, according to the report. Lease rates remain below peak levels for most property types and increased in 25 of 31 markets surveyed.
The Northeast is the strongest office market, with nine out of 10 regions surveyed in recovery or expansion this year.
Two-thirds of investors view current market conditions as favorable to sellers, and all 81 multifamily markets surveyed are expected to be out of recession by the end of the year.
http://www.bloomberg.com/news
Commercial real estate investors are optimistic that a U.S. industry recovery will continue even as the economy shows signs of slowing.
A lack of new supply and low interest rates are helping to drive investor interest in commercial properties. Capitalization rates, which decline when real estate prices increase, fell in 27 of 31 markets surveyed.
Office properties led cap-rate declines in the second quarter, the report showed. The average cap rate for office buildings in central business districts was 6.95 percent, down 1.2 percent from a year earlier. Cap rates, a measure of yield, are net income divided by the sales price
Buyers are pursuing deals as the market improves, and concern that that the economic recovery will falter has deterred “very few” investors from acquiring assets.
There will be “very few additions” to the commercial- property supply in the near term, which will help absorb existing space and drive up rents as tenant demand increases, according to the report. Lease rates remain below peak levels for most property types and increased in 25 of 31 markets surveyed.
The Northeast is the strongest office market, with nine out of 10 regions surveyed in recovery or expansion this year.
Two-thirds of investors view current market conditions as favorable to sellers, and all 81 multifamily markets surveyed are expected to be out of recession by the end of the year.
http://www.bloomberg.com/news
Brownstone Tampa Partners LLC Announced it has Acquired the Former Trump Tower
NNN Lease Market News
Mr. Trump wasn't the developer of the planned 52-story Tampa project, but he licensed his name to its Florida developer, Simdag/Robel LLC. Mr. Trump did numerous of these types of deals in the years leading up the economic downturn, earning large fees. Most turned out well. But a few proved to be a headache for Mr. Trump after the market soured.
Some of the Tampa lawsuits against Mr. Trump have been settled out of court, says a person familiar with the matter.
Mr. Trump, who made his name as a Manhattan developer, said in an interview on Tuesday that most of his licensing deals have been successful and the Tampa project was one of numerous projects hurt by bad timing. He also said that his company, Trump Organization, plans to continue licensing the Trump name.
But now, he said, he plans to "look in more detail into the market where we're going, whether it's Tampa or somewhere else."
For months, Dagostino has said the property where he had intended to build a 52-story, $225 million Trump Tower Tampa is on the market but that he still held out hope of building a revised project that could include both condominium and hotel components.
Robert Owens said a partnership he is leading (Brownstone Tampa Partners LLC ) paid $5 million for the former Trump site and an adjacent six-story office building. He said he plans to build a mixed-use complex with retail, offices and a hotel or condominiums there.
http://online.wsj.com/public/page/news-real-estate-commercial.html?mod=WSJ_topnav_na_realestate
Mr. Trump wasn't the developer of the planned 52-story Tampa project, but he licensed his name to its Florida developer, Simdag/Robel LLC. Mr. Trump did numerous of these types of deals in the years leading up the economic downturn, earning large fees. Most turned out well. But a few proved to be a headache for Mr. Trump after the market soured.
Some of the Tampa lawsuits against Mr. Trump have been settled out of court, says a person familiar with the matter.
Mr. Trump, who made his name as a Manhattan developer, said in an interview on Tuesday that most of his licensing deals have been successful and the Tampa project was one of numerous projects hurt by bad timing. He also said that his company, Trump Organization, plans to continue licensing the Trump name.
But now, he said, he plans to "look in more detail into the market where we're going, whether it's Tampa or somewhere else."
For months, Dagostino has said the property where he had intended to build a 52-story, $225 million Trump Tower Tampa is on the market but that he still held out hope of building a revised project that could include both condominium and hotel components.
Robert Owens said a partnership he is leading (Brownstone Tampa Partners LLC ) paid $5 million for the former Trump site and an adjacent six-story office building. He said he plans to build a mixed-use complex with retail, offices and a hotel or condominiums there.
http://online.wsj.com/public/page/news-real-estate-commercial.html?mod=WSJ_topnav_na_realestate
Monday, June 20, 2011
Time to Buy (NNN) Net Leased Properties
NNN Lease Market
Now is the Time to Buy (NNN) Net Leased Properties
As our nation suffers from “deficit disorder” making financial decisions has not been this difficult since the 1980’s. With doom and gloom on the news each night and the word “crisis” in every paragraph, and the capital markets in a state of collapse most investors have frozen their decision making. The availability of high quality assets has rarely been better.Active lenders are funding selectively and mostly with long term relationships into only the best investments. They look to value of the asset, the ability to pay the loan back and the ability to weather any storm that may come up. We are gripped in a recession a recession and there is no recovery predicted in the near term. Many investors are sitting in strong cash positions and looking for the bottom. It very well be that we would not recognize the bottom even if someone pointed it out. For the long-term investor, they are in the market at all points, up and down. The market is now serving up many great opportunities to buy quality properties at attractive pricing.
Inventory is increasing and there are many products to choose from. All tenant types, credits, lease terms, and types of construction to look at. We look for this trend to continue for the balance of 2010 and most of 2011.
Despite the economic downturn and the fact that many aspects of the commercial real estate industry still need time to season before true recovery takes place, some niche segments of the market are actually performing extremely well. In fact, some are at the same level they reached at the height of the market.
Financing is the number one issue today. For the owners of smaller properties, options in these difficult times are greater especially since capital is still available for these deals. However, for the larger property owners where potential buyers likely require financing, their choices are much more limited.
NNN Investment Property in Florida No Management Responsibilities
NNN Lease Market News
Calkain Companies, a national real estate investment brokerage firm, recently procured the $900,000 sale of a Burger King NNN investment property in Fort Myers, Florida. The property at 9041 College Parkway is operated by Furman's Inc, a regional franchisee of Burger King for over 30 years. The property is situated on .9 acres of land at the hard corner of College Parkway and South Pointe Blvd.
Patrick Nutt, Senior Associate of Calkain Realty Advisors, the private market division of Calkain Companies, represented both parties in this transaction. Nutt commented, "The real estate was the driving force on this deal. It's a quality corner where the tenant has occupied the space for a very long time." Nutt continued, "Even after seeing effective rents in the market decrease over the past two years, the existing lease is well below market, offering the buyer potential upside at the end of this lease term."
This sale marks the third closing in less than a month for Nutt, possibly signaling a turn in the perception of the investment market. Nutt remarked, "If you have a high credit tenant or high quality real estate, there is considerable demand for those assets, often attracting cash buyers looking to capitalize on the higher returns offered in net lease investments compared to the historically low interest rates of a traditional certificate of deposit or money market account."
Meanwhile, Burger King franchisees are spending big to take part in Burger King's massive, chain-wide remodeling program. The plan calls for all 12,000 worldwide stores to be fitted with rotating chandeliers, electronic-screen menus, and walls of brick and corrugated steel. The cost is reportedly between $300,000 and $600,000 per store.
It's all very confusing for the fast-food consumer. Burger King, even while positioning itself as the place to procure sacks of cheap burgers to be eaten on the run, also seems intent on also competing directly with "fast casual" chains like Chipotle (CMG) and Panera (PNRA), and even with straight-up, sit-down restaurants like Applebee's.
McDonald's, meanwhile, is offering premium, high-margin products, but without shedding its fast-food identity. Everything it sells -- the premium stuff, the healthy stuff, the coffee -- is affordable and convenient. And while it, too, is upgrading its stores, it's not trying to make them look like anything other than McDonald's outlets, where you can grab what you need and be on your way.
It will be interesting to see what the new Brazilian owners will make of Burger King's grandiose vision. Chidsey will step down as CEO, but will remain as a co-chairman along with Alex Behring, 3G's managing director. Supposedly they'll work together to find a new chief.
So far, a few dozen outlets have taken part in the remodeling. While the revamped stores, according to the company, have boosted sales by 12% to 15%, 3G will be looking for ways to cut costs (as is the wont of PE shops) as well as cheaper ways to boost the top line. Of course, 3G has promised to invest big in the chain, but given that it's paying $4 billion, or $24 a share -- a 46% premium to its share price earlier this week -- the new owners will have to show much more care in deploying such investments than Burger King has during its four-year life. NNN properties for sale are typically free standing buildings that are leased to tenants for a 10 to 25 year term. They offer the benefit of little or no management responsibilities as the tenant pays for all, if not most of the expenses. The investor receives their rent with little to no other involvement.
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