Retail real estate still improving, thanks to Millennials
Chicago — Employment growth in science, technology, engineering and mathematics and the continuing recovery in the U.S. housing market have begun to affect all sectors of commercial real estate, according to Jones Lang LaSalle’s “Cross Sector Outlook.”
Total sector commercial real estate volumes in the first three quarters of 2013 have reached $208.82 billion, an increase of 30% over the same period in 2012, said the report.
The continuing growth is fueling occupancy and rent increases and boosting investor demand. In addition, Millennials (adults younger than 34) are becoming a larger component of the workforce and beginning to affect operations across the spectrum of commercial real estate categories.
In the retail real estate category, the JLL report said that vacancy rates should continue to inch down over the next year, as construction remains limited. Lack of new supply will extend the ongoing recovery in rents. Investor interest in the slowly recovering sector is perking up as well with investment sales growing to $33.8 billion in the first three quarters of 2013, an increase of 14% over the same period in 2012.
CBRE arranges financing for $41.6 million portfolio
Dallas — CBRE Capital Markets arranged financing for the acquisition of a portfolio of 16 shopping centers totaling approximately 417,000 sq. ft. Located across the country, each of the 16 strip centers is adjacent to a Wal-Mart Supercenter shadow anchor. CBRE worked on behalf of the borrower, a partnership between Dallas-based Fountain Capital and Cheney & Mathes Properties, to obtain a 10-year, $41.6 million fixed-rate, non-recourse loan through the Goldman Sachs Mortgage Co.
The 16 properties are located in 10 states with a strong presence in the state of Texas. The portfolio is 96% leased to 145 tenants, including multiple locations of Dollar Tree (9), Cato (12) and Hibbett Sports (5).
DLC Management Corp. announces October leases
Tarrytown, N.Y. — DLC Management Corporation, a national owner and operator of open-air shopping centers, announces the following new leases that were signed in October 2013:
• Back to Bed, 3,852 SF, Crossroads Shopping Center – Schererville, Ind.
• Better Sofas, 3,590 SF, Southwest Plaza – Roanoke, Va.
• China Buffet, 4,500 SF, King City Square – Mount Vernon, Ill.
• Clayton County Police Dept., 2,400 SF, Crossroads South – Jonesboro, Ga.
• dd’s DISCOUNTS, 26,691 SF, Tower Shopping Center – Raleigh, N.C.
• Park West Barber School, 4,000 SF, Mount Clare Junction – Baltimore, Md.
• Phone Medics, 1,400 SF, Shoppes at Letson Farms – McCalla, Ala.
• PT Solutions, 3,000 SF, Sprayberry Square – Marietta, Ga.
• Ross Tools & Fasteners, 6,000 SF, Cobb Center – Smyrna, Ga.
• Shears & Blades, 1,200 SF, Peachtree Parkway Plaza – Norcross, Ga.
• Simply Shoes, 2,000 SF, Eastover Shopping Center – Oxon Hill, Md.