Investment Sales: It’s a strong seller’s market

Michael RandmanBy 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?

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REITs: A Better Investment Than Stocks

REITsDuring the first half of 2014, the National Association of Real Estate Investment Trusts reported the stock exchange-listed U.S. equity REITs were up 16.25%, with a dividend yield of 3.52%. Yet the S&P 500 Index reports a total return of 7.14% with a dividend yield of 2%, according to a recent article on CNBC.com.

Why are investors looking into REITs? Because of higher yields, bigger returns, and the currently low interest rates.

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How Construction Activity Betters Our Economy

constructionBy Charles Ferlisi, Director of Development & Construction Consulting at Southpace Properties, Inc.

I recently came across an article in the Birmingham Business Journal by Jay Reed, President of the Associated Builders and Contractors of Alabama. His piece was titled “Why Construction Matters in Alabama.” As Director of Development and Construction Consulting at Southpace, I was curious to read his points of why he felt construction mattered so much in our state. Turns out, I couldn’t agree more with what he had Continue reading “How Construction Activity Betters Our Economy”

Avondale: Birmingham’s Next Great Neighborhood

Architect's rendering for a possible building design on the Stevens Garage site in Avondale.

By Christen Lewis, Southpace Director of Marketing and Research

If you attended the Birmingham CREW Panel a couple of months ago, then you heard straight from our own horse’s mouth (aka, Southpace principal John Lauriello) that the Avondale area is one that is growing and will soon be unrecognizable compared to its former self. Continue reading “Avondale: Birmingham’s Next Great Neighborhood”