The commercial real estate industry is beginning to see some great progress, even some of the best numbers since the financial crisis began in 2007. As the economy continues to improve, investors are seeing a healthy performance across most property types.
Although some markets have become more vigorous than others, according to Southpace Broker, Rich Vanchina, the Birmingham area industrial sector is seeing its fair share of expansions and early renewals.
In a recent article published on GlobeSt.com, some very interesting numbers were revealed:
This week’s featured property is an excellent development opportunity located at 2278 Rocky Ridge Road in Vestavia Hills, Alabama.
With easy access to Interstates 65, 20, 59 and 459, it’s no wonder that Vestavia Hills is one of Alabama’s fastest growing cities. The city has been recognized for its consistent ranking as one of the top rated school systems in Alabama, and was also recently listed as the fifth safest city in the state.
We’re already off to a great start this year with our brokers completing more than $11 million in transactions during the month of January.
Take a look at our January done deals here:
Bob Moody’s watercolor depicting the Title Building and Massey Building
Over the years, thanks to Birmingham artist Bob Moody and Southpace Principal John Lauriello, many historic buildings in Birmingham have been rescued and restored. The two have been long time friends with a common interest, or should we say passion, for Birmingham.
John and Bob’s partnership can be traced back to 1983, when the YMCA made their plans public that they were going to build a downtown facility located across the street from the Title Building. That’s when John began looking for an architect to restore the historic Title Building, but he wasn’t looking for just any architect. He was searching for one that, like him, believed historic buildings should stay true to their character—even through a renovation. And that’s when John met Bob Moody. At the time, Bob had his own company, Moody and Associates, which designed commercial interiors and architectural plans.
Last week we were pretty excited to learn that two Southpace transactions landed on the Birmingham Business Journal’s top Commercial Real Estate Deals of the Year for 2014.
You’ll find both of those deals below, plus the rest of the top 10 transactions our brokers facilitated in 2014.
At Southpace, we start each new year by honoring our top five producing brokers from the previous year. As usual, our 2014 top five shouldn’t be much of a surprise to those in the Birmingham area commercial real estate industry.
Up first is Tyler Bradford, CCIM, a broker in our retail division with a focus on Tenant Representation who had an excellent year with several clients, including Gander Mountain. Tyler helped the outdoor sporting goods retailer secure new stores in Montgomery and Mobile, Alabama in 2014. He also worked with McDonald’s, Newk’s Eatery, and Which Wich Sandwich Shop in adding new restaurants last year. Additionally, Tyler brokered the sale of several investment properties around the state.
We’re proud to have helped the businesses below find their home in Alabama. Now that they are officially open, we encourage you to experience their top-notch customer service and/or their delicious dishes!
By Michael Randman
In a recent Southpace Properties sales meeting, one of our brokers presented a NNN, free standing, national credit tenant restaurant available for purchase.
The broker was asking an 8 CAP for the deal. Within a few hours, he had five real offers for this well-located property that had a long lease term remaining.
Ultimately, the price got bid up 50 basis points and went under contract for close to a 7.5 CAP rate. So what does this say about the current investment market?
By Tommy Joyce , CCIM, CPM
With property management assignments stretching from Hickory, North Carolina to Dallas, Texas, Southpace Management, Inc. strives to provide unparalleled property management and maintenance services throughout the southeast.
In 2014, we began important initiatives to ensure that the property management division is positioned for strategic growth with the right tools of the trade. A new fleet management plan was implemented and already has new maintenance vehicles on our properties.
“New Development” is a phrase we haven’t heard a lot in the last several years in the Birmingham market, however, times are changing.
In 2014, the Birmingham retail market saw new tenants and restaurants, an increase in high-end grocers and the talk of new development. This last year was certainly a good year for the Southpace Retail Division and we look forward to an even better year in 2015.
The overall vacancy rates didn’t change much in 2014, going from 9.8% in the first quarter to 9.7% in the third quarter. However, the market conditions have improved. We’re seeing increased rents and less concessions across all retail markets in Birmingham. I would expect this to continue throughout 2015 due to the lack of available space creating a serious demand among tenants looking to break into the Birmingham market.
Grocery stores in our market continue to be a hot topic, only this year it’s the high-end grocers that are making a splash.