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Spokane, WA | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Spokane, WA

Spokane - Top Retail Market to WatchThe economy of Spokane is attempting to recreate itself from a natural products producer to a more high tech and business-focused cluster but, so far, the results remain mixed. Unemployment has grown recently to 7.7% in January ‘16 but new job creation is occurring at a 1.7% annualized rate, according to the Bureau of Labor Statistics. Top sectors adding jobs include Information, Professional and Business Services, and Educational and Health Services, which are growing at annualized rates of 13.8%, 6.3%, and 3.6%, respectively. Population grew 4.2% from 2010 to 2015, according the Census Bureau, which means that overall demand for retail could grow. Still, sustained reductions in unemployment will need to be seen for significant growth to occur. As the tech industry grows, this is possible.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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San Francisco, CA | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: San Francisco, CA

San Francisco - Top Retail Market to WatchSan Francisco has been the iconic American boomtown for centuries and this trend continues today as technology firms have helped lead record job growth that has brought the unemployment rate down to 3.9% in January ‘16 as employment continues to grow at a 3.6% annualized rate, according to the Bureau of Labor Statistics. San Francisco is also a major port and tourist destination, thus the demand for retail real estate should grow strongly in 2016 and beyond. According to the Census Bureau, population has grown by 5.9% from 2010 to 2014, which is quite impressive given the limited land mass of the city and topography of the Bay Area. As rents and home prices rise, expect San Francisco retail real estate to continue gentrifying as well, causing rent spikes in many sub markets.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Portland, OR | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Portland, OR

Portland - top retail market to watchPortland has experienced surging new employment in 2015 that has brought the unemployment rate down to 4.7% as of January ‘16, while new jobs are being continually added at an annualized rate of 3.1%, according to the Bureau of Labor Statistics. This is due to a well-diversified economy and quality of life that will also fuel growth in Portland’s retail real estate market. Top sectors for growth include Information, Leisure and Hospitality, Education and Health Services, and Construction, all growing at annualized rates of 9.4%, 4.6%, 4.5%, and 3.9%, respectively. As the population continues to grow as it has done by 6.1% from 2010 to 2014, according the Census Bureau, there will be greater needs for all real estate including retail establishments in 2016 and beyond.

Advisor Insights: SVN | Bluestone & Hockley in Portland, OR

SVN’s Portland-based Advisors at SVN | Bluestone & Hockley have some retail market highlights to share. Here’s what to look out for in Portland’s retail market in 2016:

  • Increase in on-market for sale properties
  • Decline in available SF for lease
  • Gradual increase of retail lease rate

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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San Diego, CA | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: San Diego, CA

San Diego - top retail market to watchSan Diego has steadily grown since the recession with now record levels of employment that have brought the unemployment rate down to 4.7% in January ‘16, while new jobs continue to be added at an annualized rate of 2.8%, according to the Bureau of Labor Statistics. Population has also grown 6.1% from 2010 to 2014 according to the Census Bureau, as people choose San Diego for its high quality of life and climate. Its diverse economy from military and shipping to research and finance has allowed demand and fundamentals for retail real estate to grow with a trend that should persist through 2016 and beyond. The top sectors for job gains are Construction, Education and Health Services, Professional and Business Services, and Manufacturing, with annualized growth rates of 7.4%, 3.9%, 3.6%, and 3.4%, respectively.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Orlando, FL | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Orlando, FL

Orlando - top retail market to watchOrlando continues to be one of the fastest growing markets in the nation, fueled by record tourism and new business openings and relocations. Unemployment remains stable at 4.7% as new jobs are being created at a 4.9% annualized rate, according to the Bureau of Labor Statistics. Population has also boomed by 9.9% from 2010 to 2014, according to the Census Bureau, creating the demand for more retail real estate. Top employment sectors include Construction, Professional and Business Services, Manufacturing, Educational and Health Services, and Leisure and Hospitality, with annualized growth rates of 14.5%, 8.6%, 7.3%, 4.6%, and 4.4%, respectively. This broad-based growth will enhance the health of the retail real estate sector in 2016 and beyond for both tourist-focused and resident-focused establishments.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Nashville, TN | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Nashville, TN

Nashville - top retail market to watchNashville’s economy continues to boom, as employment sets new record highs with continued 4.0% annualized growth that has brought the unemployment rate to a low of 3.7% as of January ‘16, according to the Bureau of Labor Statistics. This corresponds with a 6.7% increase in population from 2010 to 2014, according to the Census Bureau. This growth is putting pressure on retail real estate as fundamentals improve in face of steady growth; a trend expected to persist in 2016 and beyond. The fastest growing employment sector is Mining, Logging, and Construction followed by Professional and Business Services, then Financial Activities and Information, with annualized growth rates of 9.4%, 8.7%, 4.5%, and 4.4%, respectively. This type of broad-based job growth is sure to boost all real estate sectors including retail.

Advisor Insights: SVN | The Genesis Group in Nashville, TN

SVN’s Nashville-based Advisors at SVN | The Genesis Group have some retail market highlights to share. Here’s what to look out for in Nashville’s retail market in 2016:

  • Strong demand for retail space
  • Declining vacancy
  • High rents
  • Competition for space
  • Very little inventory

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Miami, FL | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Miami, FL

Miami - top retail market to watchAfter facing a deep real estate and economic recession, Miami has fully recovered, has more employment than ever, and continues to grow at a 2.9% annualized pace, while unemployment remains stable at 5.2% as of January ‘16, according to the Bureau of Labor Statistics. This growth has been led by a new construction boom fed by foreign investment that has construction jobs growing at a 10.5% annualized rate, making it the far and away fastest growing sector. Population has also grown by 7.8% from 2010 to 2015, according to the Census Bureau, and is expected to continue growing, fueling the need for more retail development. Miami’s joint tourism, retirement, and business growth should force rental rates up and vacancies down in the retail real estate sector for 2016 and beyond.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Las Vegas, NV | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Las Vegas, NV

Las Vegas - top retail market to watchAs tourism growth has once again led Las Vegas to new heights in overall employment, the unemployment rate is still falling as it sits at 6.5% as of January ‘16 while jobs are being added at a 2.5% annualized rate, according to the Bureau of Labor Statistics. Construction is the fastest growing employment sector at an 11.0% annualized rate followed by Education and Health Services at 8.1%. Las Vegas took a pause in population growth due to the recession but the pace is likely to grow in 2016 and beyond; still, the city grew by 5.0% from 2010 to 2014, according to the Census Bureau. Growth in tourism will spur the need for tourist-focused retail in popular locations like The Strip; however, overall growth will also increase demand for retail to service the local population. Over time, Las Vegas is likely to diversify from tourism and become a more balanced economy.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Charlotte, NC | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Charlotte, NC

Charlotte - top retail market to watchCharlotte has expanded its employment base steadily since the recession bottomed in 2010 and currently has a relatively low 5.3% unemployment rate, as of January ‘16, and 2.8% annualized growth of new jobs, according to the Bureau of Labor Statistics. The region has also grown population by 10.1% from 2010 to 2014 according to the Census Bureau, making it prime for expansion and development of retail real estate. Major growing employment segments include Mining, Logging, and Construction, Financial Activities, and Leisure and Hospitality with 6.4%, 4.8%, and 4.6% annualized growth, respectively. As Charlotte continues to be a popular place to work and live, more firms are likely to enter the market, including those seeking to establish corporate headquarters. Despite these positive forces, North Carolina’s recently enacted “bathroom law” threatens to reverse economic growth as businesses and consumers look elsewhere to avoid the perceived discriminatory law; this could cause pain to the retail sector for the rest of 2016 and beyond if not fixed.

Advisor Insights: SVN | Percival Partners in Charlotte, NC

SVN’s Charlotte-based Advisors at SVN | Percival Partners have some retail market highlights to share. Here’s what to look out for in Charlotte’s retail market in 2016:

  • Increasing property values
  • Ongoing new development of grocery anchored centers
  • New grocery stores entering the market
  • Target will start expanding again
  • Continue to see high demand for investment properties

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Austin, TX | 2016 Top #CRE Markets to Watch: Retail

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Austin, TX

Austin - top retail market to watchRetail real estate should perform well in Austin in 2016 and beyond, as this dynamic economy continues to grow and diversify. According to the Census Bureau, the population of Austin has grown 12.5% from 2010 to 2014. Not surprisingly, the economy looks stellar with a 3.2% unemployment rate as of January ‘16 and jobs are growing at 4.7% annually, according to the Bureau of Labor Statistics. The best sectors for job growth are Mining, Logging, and Construction and Leisure and Hospitality, growing at 11.0% and 9.2% annualized rates, respectively. These forces will keep new residents locating in the metro region and businesses expanding. Retail demand will follow the population and should continue expanding in 2016 with ever-increasing fundamentals.

Advisor Insights: SVN | Tamarack in Austin, TX

SVN’s Austin-based Advisors at SVN | Tamarack have some retail market highlights to share:

Gateway Cities like Austin continue to benefit from diverse job creation ranging from service jobs to higher-end STEM (science, technology, engineering and math). It remains an attractive place to live for all generations. Due to the continued numbers of people moving to Austin all property types are attractive but retail properties will continue to be the most favorable investment type.

Austin has a tight market for space so we will see most new construction in sub-markets of Austin such as Lakeway, Leander and Cedar Park.

  • With average rental rates averaging $20 – $23.50 per square foot, rates are expected to increase by more than 4% by the end of 2016.
  • Values in the retail market are expected to increase by 2% – 3.9% by year end.
  • Absorption has been positive for the previous five years and is expected to increase to an estimated 350,000 square feet within 2016. With slightly more than 300,000 square feet of retail space expected to be constructed by the end of 2016 the occupancy rate will also increase above its current 94% rate. Retail properties that are under construction, planned and proposed represent a 3% growth to the current Austin market.
  • Cap rates are currently 6.8% – 7% and are expected to stay relatively flat for the next 6 months.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”Austin, TX is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

Tampa, FL | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Tampa, FL

Tampa: 2015 Top Retail MarketsLike other Florida metros hard-hit by the Great Recession, Tampa’s retail market is now recovering its momentum. Job growth and demand for space are both set to improve in 2015. Across retail subtypes, Chandan Economics reports the vacancy rate declined to 6.3% in the fourth quarter of 2014, in spite of a spike in completions. Asking rents increased by just 1.1% over the year but are projected to accelerate by late 2015.

Supermarkets are among the retailers expanding or looking to expand in the Tampa market. Trader Joe’s opened a location in Tampa in 2014 and, in early 2015, completed another in St. Petersburg that drew crowds to its grand opening. Organic and specialty grocers Whole Foods, Lucky’s Market, Sprouts Farmers Market, and Earth Fare are each rumored to be on the lookout for locations in the area. Developers have begun to answer a broader call for more development, but currently less than 2 million square feet of retail space is under construction. In the ranks of potentially catalytic projects, the owner of the Tampa Bay Lightning has proposed an ambitious redevelopment project to revitalize the waterfront district near Amalie Arena, adding close to 3 million square feet of office, restaurant, and retail space.

To read more on Tampa and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.

retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Orange County, CA | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Orange County, CA

Orange County, CA: 2015 Top Retail MarketsThe retail vacancy rate in Orange County fell below 5% in 2014, down more than 200 basis points over the last two years. Rents have moved in kind, rising 8.1% over the year, according to Chandan Economics. Supply has been restrained but will spike in 2015 as large projects come online. The market is expected to absorb the new space easily, supported by the area’s strong underlying economic and consumer spending trends. In many areas of Orange County, retail sales are back to prerecession levels, at least when measured by sales tax receipts.

Supported by a median household annual income exceeding $75,000, developers are stepping up to provide opportunities for retailers to cash in. Institutional retail property owners are pouring money into remodeling and updating Orange County malls, including South Coast Plaza, which generated $1.6 billion in sales in 2014. The Brea Mall completed its major facelift in 2014, and others, including Main Place in Santa Ana and the Laguna Hills Mall, are soon to receive major remodels as well. In the small- and mid-cap segments of the market, grocery-anchored shopping centers in Orange County have seen an impressive run of 5 straight years of positive net absorption. Developers are also turning to downtown Anaheim and downtown Santa Ana for mixed-use infill opportunities.

To read more on Orange County and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

San Antonio, TX | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: San Antonio, TX

San Antonio: 2015 Top Retail MarketsContrasting national trends, San Antonio’s retail inventory grew in leaps and bounds in 2014. Developers added roughly 2 million square feet of new retail space during the year, nearly doubling the tally of deliveries from the market low point in 2012. Despite the new supply, occupancy has edged higher. CoStar reported a 5.5% vacancy rate for the fourth quarter of 2014, below San Antonio’s long-term average. Asking rents were relatively flat over the year but are expected to ramp up. Investors in the market may find that cap rates still reflect the slower rate of income gains, affording an opportunity for investment at a discount to fundamentals.

The balance of San Antonio’s retail development in 2014 came from large chain stores like Walmart and Sam’s Club. Walmart made big moves with the opening of a new Supercenter, as well as four smaller locations. Texas-based supermarket chain H-E-B also experimented with new concepts in 2014, renovating its oldest operating location on Nogalitos Street into its first two-story market in Texas. H-E-B plans to expand its corporate headquarters in downtown San Antonio, and build an adjoining 12,000-square-foot market, the only grocery store in the urban core. Once-troubled retail corridors, like Austin Highway, are seeing new life thanks to complementary multifamily development in the area.

To read more on San Antonio and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.

retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Orlando, FL | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Orlando, FL

Orlando, FL: 2015 Top Retail MarketsInvestors frustrated by rock-bottom yields in gateway markets may find the right balance of lower asset prices and improving market performance in Orlando. Investment activity has picked up, but the recovery in prices has lagged, reflecting a slow rebound in occupancy and rent growth. While retail rents were flat in 2014, CoStar projects that rent growth will accelerate past an annual rate of 5% by 2016.

Downtown Orlando is sometimes criticized for a lack of weekend activity, but plans are in the works to enliven the city center and introduce new live–work–play opportunities to this Central Florida market. Investors are adding more entertainment draws to the tenant mix. Orlando Fashion Square, sold in 2013 for $35 million, added a bowling alley last August and will become the home of Orlando’s first Element by Westin hotel. The Artegon Marketplace is adding a mix of specialty draws like International Hot Glass, a DIY glass-blowing studio and art gallery, and Gods & Monsters, a 19,000-square-foot comic book concept. A new mall is in the works, as DDR broke ground on the new Lee Vista Promenade in December, despite Target pulling out as one of its proposed anchor tenants.

To read more on Orlando and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Northern Virginia | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Northern Virginia

Northern Virginia: 2015 Top Retail Markets to WatchThe Northern Virginia retail market has long been dominated by traditional shopping malls, but today’s retail developers are working to recast the area in a more urban mold. Among the most notable projects, the Springfield Town Center, a wholesale redevelopment of the Springfield Mall, opened in late 2014 with more outdoor and community spaces, a movie theater, and play options for children. Development activity has not crimped fundamentals. Northern Virginia ended 2014 with a retail vacancy rate of 6% according to Chandan Economics, down 30 basis points from a year earlier.

Supporting the long-term outlook for the local retail scene, Tysons Corner is due to receive a boost with the long-awaited extension of the DC Metro’s Silver Line. Office leasing in the area is picking up, which will increase the number of riders through the Tysons Corner station. Several new mixed-use retail and apartment developments have broken ground since the Silver Line opened in July. By 2018, the Silver Line will be extended further to serve the Reston Town Center and link up with Dulles International Airport.

The possibility of federal belt-tightening has local economists in the Northern Virginia market warning of a possible medium-term contraction, but there is little evidence of a drop-off in activity thus far. Supermarkets and their developers seem to shrug off these worries as New York–based Wegmans and North Carolina–based Harris Teeter, now a subsidiary of Kroger, are among the retailers expanding into the area.

To read more on Northern Virginia and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


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It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Nashville, TN | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Nashville, TN

Nashville: 2015 Top Retail Markets to WatchNashville’s road to recovery has been longer than for most other markets. In the immediate aftermath of the recession, vacancy rates trended above 10%, according to Chandan Economics, and have only recently narrowed the gap. Heading into 2015, the vacancy rate across all retail property subtypes was 6.6%, according to CoStar, approaching the long-term market average of 6.4%.

As property income trends have improved, new development is getting underway. Current projects include mixed-use development with street-level retail, such as developments by local grocer-cum-real estate developer H.G. Hill in Hillsboro Village and Sylvan Heights. Additionally, the opening of First Tennessee Park, the new 10,000-seat ballpark for the Triple-A affiliate Nashville Sounds, is expected to spur new retail investment into the Sulphur Dell neighborhood, just north of the Capitol. As competition for space in established retail hot spots like the Gulch, Green Hills, and Belle Meade intensifies, local retail investors are turning to the Main Street and Gallatin Avenue corridor of East Nashville for lower prices and a burgeoning local retailer scene that could support upside appreciation. Florida-based supermarket chain Publix has reportedly shown interest in a smaller urban concept near Music Row, satisfying growing demand for grocery store options from residents of newly built downtown submarket apartments and condos.

To read more on Nashville and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Miami, FL | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Miami, FL

Miami: 2015 Top Retail Markets to WatchMiami’s retail sector has never been healthier. Across all subtypes, CoStar reports the market vacancy was just 3.6% in the fourth quarter of 2014. Malls and power centers circled out the year with sub-2% vacancy rates; neighborhood and community shopping centers, at a still-enviable 5.1%. Spurred by limited availability, rent growth in Miami has hit double digits, rising by 11.2% in 2014 according to Chandan Economics’ tracking of mortgage-financed properties.

Luxury brands from across the globe are clamoring for footholds in the rejuvenated Design District and some of Miami’s large-scale retail construction sites. The westerly suburb of Doral is also heating up, as IKEA opened its only Miami–Dade County location there in August 2014, and giant mixed-use projects Downtown Doral and Doral CityPlace are expected to deliver hundreds of thousands of square feet of retail in 2015. As Doral retail opportunities come online and centrally located mega-projects like Brickell CityCentre add plenty of supply, it remains to be seen how rapidly the pent-up demand for retail will absorb these new additions.

While the relative strength of the dollar compared to most foreign currencies could mean that international travel to Southern Florida will recede slightly, domestic tourism may well increase with cheap gas prices driving Americans to hit the road. For long-term investors, both are issues for the short-term and should not alter the long-term outlook for Miami’s retail sector.

To read more on Miami and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Manhattan, NY | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Manhattan, NY

Manhattan: 2015 Top Retail Markets to WatchRetail is booming, as it always seems to be, in the major shopping districts of Manhattan. The Fifth Avenue corridor below Central Park has stolen Hong Kong’s Causeway Bay crown as the most expensive retail market, with rents for the top deals exceeding $3,000 per square foot. Even when incumbents leave the luxury corridor, their spaces are not vacant for long. Microsoft announced it would take over the space vacated by Fendi, which moved to a no-less-swanky Madison Avenue location in 2014. Microsoft’s new location will be its first flagship to compete with the ubiquitous Apple retail stores.

New York City neighborhoods are seeing an increase in demand for space driven by a strong local economy and large-scale infrastructure and development projects that will transform entire submarkets. In Lower Manhattan, several national tenants are actively in search of spaces near the World Trade Center as the full vision for the neighborhood reaches fruition. Saks Fifth Avenue announced that it would take 90,000 square feet in the adjacent Brookfield Place center as well as open a Saks Off 5th store in 1 Liberty Plaza, the first of its kind in Manhattan. Additionally, Neiman Marcus announced plans to open its first Manhattan location in 2018 at the Shops at Hudson Yards, currently under construction. Not every part of the borough can boast runaway success in retail leasing. While residential investors are betting on the opening of the Second Avenue Subway in East Harlem and the Upper East Side, retail leasing activity has not picked up significantly in anticipation of the new line.

To read more on Manhattan and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Las Vegas, NV | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Las Vegas, NV

Las Vegas, NV: 2015 Top Retail Markets to WatchBrick-and-mortar retailers across the country are struggling against competition from online commerce. In downtown Las Vegas, however, e-retailer Zappos, along with other tech firms, is creating jobs and helping to diversify the market away from its traditional gaming base. In 2013, the online shoe seller acquired the former City Hall building, transforming it into its corporate headquarters. The company’s chairman additionally purchased about 100 surrounding parcels and has invested nearly $350 million in The Downtown Project, backing everything from the development of an elementary school and a healthcare clinic to establishing a tech start-up incubator. While these are not retail investments, per se, they are essential elements of the complementary live–work–play environment that is proving ever more important for the success of retail spaces.

Across the Las Vegas market, CoStar reports an unenviable retail vacancy rate of 9.6% as of the fourth quarter of 2014. Malls boast much lower vacancy rates but are balanced against a 14.8% vacancy rate for neighborhood centers. Vacancy rates are projected to trend lower in 2015 and 2016, owing largely to limited new supply, but rent growth will remain subdued in the near term.

In the realm of retail spaces catering to tourists, the draw of Las Vegas remains on the Strip, and, in recent years, casino operators have been investing in retail and restaurant opportunities. New York, New York added several storefronts along the Strip near the Brooklyn Bridge replica, including the 12,000-square-foot Hershey’s Chocolate World flagship store. In 2014, the LINQ Hotel & Casino opened its 300,000-square-foot open-air retail center, anchored by the High Roller, a 550-foot observation wheel. Other retail additions at Treasure Island, Bally’s, and the new Tropicana are at various levels of completion. Investor interest in Sin City had slumped in the aftermath of the housing bust; however, led by the Blackstone acquisition of The Cosmopolitan hotel complex late last year, many investors now have Las Vegas back in their sights.

To read more on Las Vegas and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Charlotte, NC | 2015 Top #CRE Markets to Watch: Retail

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Charlotte, NC

Charlotte, NC | 2015 Retail Markets to WatchCharlotte is generally well-regarded for its healthy office market and, having recovered substantially from the financial crisis, is drawing retailers with an eye for its improving employment and consumer outlook. With falling retail vacancy rates and only modest levels of construction, market fundamentals are poised to strengthen through 2015 and 2016. Across all retail subtypes, Chandan Economics reports the market vacancy rate for mortgage-financed properties fell below 7% in the fourth quarter of 2014. As compared to a year earlier, the pace of rent growth nearly doubled during 2014.

A burgeoning supermarket war is being waged in the Charlotte region, as Florida-based Publix is rapidly snapping up market share in Harris Teeter’s backyard. Walmart locations are proliferating throughout the region, and Whole Foods announced in early 2015 that it will open its second Charlotte location in the First Ward. Restaurants are also looking toward Charlotte and its hungry workers for expansion. New York–based salad purveyor Chop’t chose the Charlotte neighborhood of Myers Park for its first location outside of New York or DC. Another newcomer to the region is personal shoppers at malls, which are now available at Simon’s SouthPark Mall for a sizeable fee. Investor appetite for the region’s retail is very strong, as most institutional investors have already become comfortable with Charlotte’s fundamentals through office assets. The largest retail transactions of 2014 were closed by Connecticut-based Starwood Capital and Los Angeles–based CIM Group, both of which also own substantial office towers in the CBD.

To read more on Charlotte and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.


retail_thumbnail_WEB

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

#CRE Trends and Market Update 2015 | Retail

Retail Market Outlook

Stronger Economy and Job Trends Drive Retail Outlook

Retail property investors have waited patiently for signs of 2015 Top Retail Markets to Watchmomentum in the sector’s otherwise prodding recovery. Over the next year, many of those investors will see their patience rewarded. A stronger consumer and a healthy uptick in lease signings, a dearth of new supply, and a growing appreciation for shoppers’ changing tastes are poised to lift occupancy rates and rents for well-located, well-tenanted, and well-managed properties. Risks remain, most clearly from shoppers’ substitution into online commerce for an ever-widening range of quickly delivered products. In managing those risks, the shift to destination “shop and play” retail models — and the emergence of new models including urban outlet centers — are taking on new urgency as competition for consumer dollars intensifies.

Improving Fundamentals and Investment Opportunities

Vacancy rates at neighborhood and community shopping centers extended their slow decline, falling 20 basis points in 2014 to 10.5 % for mortgage-financed properties tracked by Chandan Economics. Data from the International Council of Shopping Centers (ICSC) and the National Council of Real Estate Investment Fiduciaries (NCREIF) show even stronger trends, with shopping center vacancy rates falling to 7.3% at the end of last year, the lowest level in more than six years, since the early days of the recession. Mall performance proved that traditional retail models are far from obsolete; vacancy rates fell to a 27-year low of 5.8%, while asking rents registered double-digit increases.

As compared to apartments and central business district office buildings, where values have surpassed their pre-crisis peaks, retail cap rate spreads remain elevated across a wide spectrum of neighborhood and community shopping centers. Investors in the small- and mid-cap segments of these retail markets are not yet faced with a shortfall of secondary market properties trading at discounts to fundamental value. Even as prices rise for stabilized assets, the investment opportunity set may grow over the next two years as billions of dollars of mortgages bundled into pre-crisis commercial mortgage-backed securities (CMBS) come due. Smaller retail properties are overrepresented in those maturities and will stretch the market’s refinancing capacity, favoring cash-rich investors with the capacity to recapitalize distressed borrowers.

Grocery-anchored centers and retail net lease properties with credit tenants and long remaining lease terms are proving more challenging spaces for investors in search of discounts. The bond-like characteristics of the latter allowed them to emerge as investor favorites in the aftermath of the recession. Buyers now cite a dearth of product in the market as a source of frustration and upward pressure on prices. Even as investors have migrated to riskier products, bank branches, the stronger national pharmacy chains, and quick-service fast-food establishments have seen cap rate spreads fall substantially lower than historic norms for net lease assets. Investors should be cautious in gauging the possibility of disruptions in safe haven tenant classes. In the grocery space, online retailers that have failed thus far to penetrate the market are watching Amazon Fresh for insights into shoppers’ willingness to try new things. Needless to say, traditional grocery owners and their landlords are watching closely as well.

 

Household Debt Retail 2015 Markets to Watch

Retail Market Statistics in 2015

Back to Work and Back to the Mall

At the heart of the improving retail picture, the labor market has improved substantially over the last year. Employers added more than 3 million jobs in 2014, the strongest performance since 1999. The unemployment rate, admittedly an imperfect measure of labor market health, fell to 5.6% at the end of the year, the lowest level since mid-2008. Even though early 2015 job numbers have been softer and labor participation remains depressed, the overall trends reflect an important dynamic in the job market. The rate at which businesses are hiring is trending toward normal levels; more important, the rate at which workers are voluntarily quitting their jobs, an indicatorPersonal Consumption Retail Market Trends 2015 of their prospects in the job market, is also on the upswing.

Even as the headline job numbers improve, growth in wages remains sluggish. Among the countervailing forces putting money back in consumers’ pocketbooks, spending on debt service fell below 10% of disposable personal income during the fourth quarter of 2014. More recently, Americans have been spending less on their gas and oil heating bills, a net positive for the economy even though energy markets like Houston and Oklahoma City have suffered. In terms of headwinds, a larger share of renter households’ income is going to housing costs as apartment rent growth continues to outpace wages. Households are spending more on consumer goods in any case, driving year-over-year increases in personal consumption expenditures on the order of 4% in late 2014 and Ecommerce Retail Market Updates 2015early 2015.

Brick-and-mortar retailers will have to work harder to capture their share of new spending, whether through enhancements to the tangible in-store experience or the development of truly effective omnichannel strategies. Online retail spending growth has increasingly outpaced traditional retail channels, growing year-over-year by nearly 15% in the fourth quarter of 2014. In contrast, retail spending excluding e-commerce increased by only 1.2%.

 

Construction Remains in Check

Investment in new retail space remains subdued as compared to pre-crisis peaks. Retail property development spending increased to $18.6 billion in 2014, up to 15% from a year earlier, but barely more than half its 2007 level. Factoring also for the rising cost of construction, the tally of projects underway across neighborhood and community shipping centers, big box retailers, and shopping malls is still early in its recovery.

Construction Spending Retail Market Updates 2015Construction Spending Retail Market Update 2015

New project announcements will be increasingly frequent in 2015, with an emphasis on growing and under-amenitized residential neighborhoods and malls that can effectively meet the “shop and play” paradigm. Difficulties in obtaining financing for smaller projects will persist as constraints over this cycle, particularly as heightened regulatory capital requirements at banks come into effect.

 

Rent Growth Improves Slowly

Measured across all property subtypes, retail rents are rising slowly but consistently. Average asking rents increased by 2.8% in 2014 according to Chandan Economics’ tracking of mortgage-financed properties, improving on the prior year’s 2 % increase. The aggregate numbers mask wide differences across geography and subtype. Dominant superregional malls and urban street-front retail have seen relatively larger increases; setting the bar, Fifth Avenue below Central Park in Manhattan is now, at roughly $3,400 per square foot, the most expensive retail corridor in the world.

Retail Rent Change Market Update 2015Retail Asking Rents Market Update 2015

Measures from ICSC and NCREIF show stronger trends than themortgage data. Shopping center rents increased by 6.5% in 2014, the best result since 2008. For malls, base rents increased by 17.2%, the fastest pace in the 14 years of available history. Mall net operating income (NOI) registered an exceptional year-over-year increase of 21.3%.

 

Long Term Cap Rate Retail Market Update 2015

Cap Rates Have Room to Decline 

Well below its long-term average of 7.7%, the national average cap rate across all retail property types declined by less than 10 basis points during 2014, to just under 6.4%. Values increased even though cap rates were relatively flat, as improving rents and occupancy rates more than offset higher expenses. As compared to its long-term average of 320 basis points, cap rate spreads over ten-year Treasury yields held onto an additional cushion of 60 basis points. The largest regional malls commanded cap rates below 5 %, as did high street retail in gateway cities. Neighborhood and community shopping center cap rates trended between 7.0% 7.5% during 2014.

National Cap Rate Spreads Retail Market Update 2015While the impact of e-commerce on retailers has varied dramatically across product types, there is no segment of the market that is fully immune to the fundamental changes in the way Americans shop. Properties that are perceived as more resilient to substitution out of brick-and-mortar, including the most urban locations and grocery- and pharmacy-anchored properties, commanded a larger price premium and lower cap rates in 2014. That divergence in retail property values may narrow in 2015 as a better job market and rising discretionary spending lift some weaker segments of the market.

 

Markets to Watch

Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Download the full report here. retail_thumbnail_WEB

Market Cap Rates

Across all retail subtypes, the national average cap rate on mortgage-financed property sales was 6.4% in 2014, well below the 20-year average of 7.7%. Cap rates reflect historically low Treasury yields and spreads that remain elevated as compared to long-term norms. Across markets, cap rates for anchored shopping centers ranged from 8.1% in Detroit to 6% in the Bay Area. In gateway markets, cap rates for high street retail reflect aggressive bidding by domestic and foreign buyers. Driven by property trades along their major tourist corridors, San Francisco and Manhattan boasted high street retail cap rates of 4% and 3.9%, respectively, on par with the best-positioned apartment and office buildings.

It’s a different world out there. 

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason — we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors, with more than 190 locations in 500+ markets.

Phoenix, AZ | 2014 Top CRE Markets to Watch : Retail

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2014 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that are driving the economy and commercial real estate performance in markets across the country.

TOP RETAIL MARKET TO WATCH : Phoenix, Arizona

phoenix-lake-489023_1280Phoenix’s jobless rate fell to 6.2 percent at the end of 2013 from 6.8 percent a year earlier, driven by gains in financial services, construction, insurance and healthcare jobs. Already one of the fastest-growing cities in the nation, Phoenix will see its population expand by more than 2.4 percent in 2014, with a commensurate rise in retail sales and even greater demand for retail space. Overall vacancy fell to near 10 percent in late 2013 in a year when retailers absorbed approximately 3.5 million square feet of new retail space, far outpacing construction that added roughly 1.5 million square feet to the market in that period. Three years of positive absorption will likely bring rental rates to an inflection point in 2014, ending a protracted decline as landlords gain greater pricing control. Already a strong market for discount and necessity retailers, Phoenix’s growth in high-paying professions will fuel sales for middle- and high-end retailers in the years ahead.

To read more on Phoenix, and other top retail markets, download the full version of the Top Retail Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Retail-CoverRetail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

Industrial Trends and Markets to Watch

 

 

Oklahoma City, OK | 2014 Top CRE Markets to Watch : Retail

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2014 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that are driving the economy and commercial real estate performance in markets across the country.

TOP RETAIL MARKET TO WATCH : Oklahoma City, Oklahoma

downtown-188848_1280Oklahoma City’s retail real estate fundamentals are curiously fragile for a market with strong job growth. The metro area has created jobs in numbers well in excess of those lost during the downturn, and although the jobless rate showed volatility in 2013, the rate stood at 4.8 percent in December, one of the lowest in the nation. Retail space absorption is improving, registering stronger results in 2013 than in 2012. That annual gain masked a poor third quarter in which retailers gave back more than 100,000 square feet in neighborhood shopping centers. Mall vacancies have come down from more than 30 percent in 2012, but roughly a quarter of mall space remains dark, and single-digit lease rates at those properties are the lowest of any retail product type in the city. A drawback to the city’s low unemployment rate is a limited labor pool that has hampered corporate growth and recruitment of new employers, contributing to the slow recovery in retail. Job growth should top 2.2 percent in 2014, however, and with above-trend annual population growth of 1.6 percent, the metro has good prospects for increasing retail demand.

To read more on Oklahoma City, and other top retail markets, download the full version of the Top Retail Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Retail-CoverRetail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

Industrial Trends and Markets to Watch

 

 

Louisville, KY | 2014 Top CRE Markets to Watch : Retail

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2014 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that are driving the economy and commercial real estate performance in markets across the country.

TOP RETAIL MARKET TO WATCH : Louisville, Kentucky

LouisvilleThe retail hub for a 16-county region, Louisville is slowly recovering from the downturn with employment growth that exceeds Kentucky’s overall performance but lags the national average. The market’s year-end employment rate was 7.5 percent, down from a peak of 10.5 percent in January 2010. In 2013, Cabela’s opened an 88,000 square foot store in the Old Brownsboro Crossing development, alongside Norton Brownsboro Hospital, Lowe’s and Costco. This year, Horizon Group Properties and CBL & Associates will open The Outlet Shoppes of the Bluegrass, an outlet mall in Simpsonville on the eastern edge of the Louisville metro. Downtown Louisville welcomed six new retail shops last year and will soon join in the renaissance of mixed-use development taking shape across the nation: a $261 million development in the CBD will bring a 600-room Omni convention hotel, 200 apartments, retail shop space and an upscale grocery. Across the market, healthy absorption at neighborhood retail centers has offset negative absorption in most other retail property types. Completion of new projects in 2013 increased overall vacancy slightly, but the vacancy rate remained in the single digits at year-end, with no major space in the pipeline other than CBL’s outlet project. The slow pace of absorption may not call for large-scale retail construction in the near term, but Louisville offers numerous opportunities to meet existing pockets of unmet demand with infill, value-add plays. Louisville will get a new four-diamond hotel along with a much-anticipated downtown grocery, retail shops and 200 apartments under a $261 million downtown development plan announced by Mayor Greg Fischer and Governor Steve Beshear.

To read more on Louisville, and other top retail markets, download the full version of the Top Retail Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Retail-CoverRetail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

Industrial Trends and Markets to Watch

 

 

Florida Tech Corridor | 2014 Top CRE Markets to Watch : Retail

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2014 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that are driving the economy and commercial real estate performance in markets across the country.

TOP RETAIL MARKET TO WATCH : Florida Tech Corridor – Orlando to Tampa

florida-67890_1920In addition to boasting some of the top tourist destinations in the United States, Central Florida has cultivated a thriving technology cluster in a 23-county region spanning the breadth of the state. Joint programs by regional universities and community colleges cover a wide range of technology fields, from microelectronics to biotechnology, modeling and robotics, aerospace, wireless technology and digital media. The growing workforce of highly skilled, young professionals is attracting tech employers and fostering startups, adding a significant and expanding source of well-paid residents to help drive retail sales. Tampa and Orlando share a similar overall retail vacancy rate of about 9.5 percent, but Tampa’s malls have outperformed with a vacancy rate below 4 percent and average mall rents of $25 or more per square foot. In Orlando, mall vacancy is 200 basis points higher and average rent is closer to $15. Tampa’s weak spot since the recession has been excess vacancy at strip and neighborhood centers, but falling rents in those subsets showed signs of flattening in late 2013. Orlando in particular has benefited from resurgent tourism that will increase as the economic recovery takes a firmer hold in U.S. markets this year. Investor confidence in Central Florida’s outlook has driven strong demand for net-leased retail since 2011, and would-be buyers are now showing greater interest in multi-tenant properties with below-market rents that offer good upside potential.

To read more on the Florida Tech Corridor, and other top retail markets, download the full version of the Top Retail Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

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Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

Industrial Trends and Markets to Watch

 

 

Nashville, TN | 2014 Top CRE Markets to Watch : Retail

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2014 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that are driving the economy and commercial real estate performance in markets across the country.

TOP RETAIL MARKET TO WATCH : Nashville, Tennessee

NashvilleA state capital with a skilled workforce and diverse economy, Nashville is staging a strong comeback in its retail fundamentals. The vacancy rate dropped by 100 basis points year-over-year in 2013 and is poised to enter single-digit territory this year. Absorption has been positive across all retail subsectors and has been most pronounced in the city’s malls, which accounted for nearly a third of net absorption. Mall fundamentals have firmed up markedly in the past 18 months, reining in vacancies from a rate in the mid-teens to more closely match the citywide rate near 10 percent. With little new space delivered in 2013 and a scant supply in the pipeline, fundamentals are on track for further improvement this year. As Nashville enters the radar screens of more investors at the national level, competition could help to preserve and enhance value as interest rates rise.

To read more on Nashville, and other top retail markets, download the full version of the Top Retail Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Retail-CoverRetail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

Industrial Trends and Markets to Watch

 

 

New York City, NY | 2014 Top CRE Markets to Watch : Retail

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2014 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that are driving the economy and commercial real estate performance in markets across the country.

TOP RETAIL MARKET TO WATCH : New York City, New York

3056953388_4512c89d0a_bThe retail recovery is old news in the Big Daddy of U.S. core markets. In New York City, the retail talk in 2014 is about new stores, strong sales, and intensive investment. Massive increases in tourism are a big part of the retail story, with more than 50 million visitors annually in each of the past three years. In 2013, tourists spent $8 billion at local retailers, excluding what they spent on dining and accommodations in the city. Fifth Avenue department stores and other high-end retailers aren’t the only shopping destinations with strong retail sales—the metro area’s dense population and high income demographic has supported more uniform demand across retail classes than in most other U.S. markets. More than 900,000 square feet of absorption, chiefly in the metro area’s neighborhood shopping centers, drove the vacancy rate below 5 percent in 2013. Developers added roughly 400,000 square feet to the local inventory, almost entirely in that same category of neighborhood centers. Outside the core areas and in the broader metro, strip centers have generally fallen behind other product types and experienced a 70,000-square foot demand contraction last year. Competition to acquire well-located properties is intense, and cap rates compressed through competitive bidding are squeezing out even heavily leveraged investors.

To read more on New York City, and other top retail markets, download the full version of the Top Retail Markets to Watch report below. 

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Retail-CoverRetail Trends and Markets to Watch

Commerical Real Estate Trends and Markets to Watch

Apartment Trends and Markets to Watch

Office Trends and Markets to Watch

Industrial Trends and Markets to Watch

 

 

Chicago, IL | 2014 Top CRE Markets to Watch : Office

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Office Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP OFFICE MARKET TO WATCH : Chicago, Illinois

chicago-1342075949YmtElevated but improving unemployment of 8.3 percent is a reminder that Chicago is lagging other major markets on the road to economic recovery. The office sector entered 2014 with nearly a fifth of its office space available for lease or sublease, but leasing activity appears to be accelerating. The central business district is attracting tenants from the suburbs as the urbanization trend takes hold, with employers moving closer to employees that live downtown. Office rents are exhibiting the volatility typical at the bottom of a market cycle, and posted a slight year-over-year decline at the end of 2013. Chicago’s diverse economy positions it for accelerated hiring as the national recovery gains momentum, but that growth is unlikely to bring substantial absorption of office space in 2014. For office investors seeking a bargain on assets in a top tier city, non-trophy assets in Chicago may harbor good opportunities with the potential to increase value as the local economic recovery finds its stride.

To read more on Chicago, and other top office markets, download the full version of the Top Office Markets to Watch report below.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

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Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Commerical Real Estate Trends and Markets to Watch
Apartment Trends and Markets to Watch