REAL ESTATE

Grubb & Ellis: Continued sluggish real estate recovery in 2012

BY Marianne Wilson

Santa Ana, Calif. — The struggling housing market, weak job growth and ongoing consumer deleveraging caused the retail market to lag other property sectors in 2011, according to Grubb & Ellis Co.’s 2012 National Real Estate Forecast, which predicts a year of slow but continued growth for all commercial real estate property sectors.

"Although a variety of economic and political factors, including continued high unemployment, an upcoming U.S. presidential election and the unresolved European sovereign debt crisis weigh on the minds of real estate owners, users and investors, we anticipate gradual improvement in leasing markets and a boost in investment sales volume," said Robert Bach, senior VP, chief economist. "This is based on an assumption of GDP growth in the range of 2.0% to 2.5% in 2012, still below the economy’s long-term potential of around 3%, and an average of 125,000 net new payroll jobs per month."

In the retail sector, demand from mid-size tenants was limited and the majority of transactions were smaller deals in 2011, according to the forecast. Neighborhood and community center vacancy rates were stable but not falling, while vacancies in regional malls inched up slightly. Regions scoring highest on the Momentum Index, which places them in the top quartile of markets analyzed, include Southern California and Northern California/Pacific Northwest.

The bottom quartile included the Mountain/Southwest region, where the housing bust was particularly severe, and the Great Lakes/Ohio Valley.

The majority of investment activity has been in larger, primary markets, while tertiary markets have seen little capital for deals. The results of the Investment Opportunity Monitor indicate that this trend will continue. Los Angeles topped the list, followed by Washington, D.C. (No. 2), Boston (No. 3), San Diego (No. 4), Seattle (No. 5), Portland, Ore. (No. 6), San Francisco (No. 7), Houston (No. 8), San Jose-Silicon Valley, Calif. (No. 9), and Austin, Texas (No. 10).

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REAL ESTATE

Nordstrom Rack to open in Huntington Beach, Calif.

BY Staff Writer

Seattle — Nordstrom announced plans to open a Nordstrom Rack in Huntington Beach, Calif.

The approximately 34,000-sq.-ft. location is scheduled to open during fall 2012 at Edinger Plaza, where it will join anchor tenants Dick’s Sporting Goods, Michaels and PetSmart. The center is owned and managed by Watt Companies with Wilson Commercial Real Estate handling leasing.

When it opens, the Edinger Plaza store will be the fifth Nordstrom Rack in Orange County. Nordstrom also operates six full-line stores in the area.

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REAL ESTATE

Sears releases partial list of store closings; Florida hit hardest

BY Staff Writer

New York City — Sears Holdings Corp. has identified 79 of the 100 to 120 Sears and Kmart stores it said last week it would close, with the preliminary list split almost evenly between the two chains.

Florida will be hit the hardest, with 11 stores to be shuttered, the Associated Press reported. Ohio, Michigan and Georgia are not far behind with six store closures planned in their states. Tennessee, North Carolina and Minnesota are set to lose four stores each.

The list does not include any stores in Illinois, where Governor Pat Quinn two weeks ago signed into law tax breaks aimed at keeping Sears and other Illinois-based companies from leaving the state.

Click here to see the complete list of the 79 stores.

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J.Walker says:
Apr-27-2013 10:21 pm

Florida will be hit the hardest, with 11 stores to be shuttered, the Associated Press reported. Ohio, Michigan and Georgia are not far behind with six store closures planned in their states. Tennessee, North Carolina and Minnesota are set to lose four stores each rush essays

J.Walker says:
Apr-27-2013 10:21 pm

Florida will be hit the hardest, with 11 stores to be shuttered, the Associated Press reported. Ohio, Michigan and Georgia are not far behind with six store closures planned in their states. Tennessee, North Carolina and Minnesota are set to lose four stores each rush essays

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