Tag - commercial real estate

Ten-X Research: Tech-Driven Demand, Shifts In Trade Policy Pushing U.S. Industrial Sector To New Heights

Ten-X Research: Tech-Driven Demand, Shifts In Trade Policy Pushing U.S. Industrial Sector To New Heights

IRVINE, Calif. and SILICON VALLEY, Calif./ Oct. 17, 2017 (StlRealEstate.News) — Ten-X, the nation’s leading online real estate marketplace, today released its latest U.S. Industrial Market Outlook, including the top five “Buy” and “Sell” markets for industrial real estate assets. The report found that the sector continues to benefit from many of the technology-driven shifts that are challenging the retail and office sectors such as rising consumer dependence on e-commerce and mounting demand for data centers to support cloud computing.

 The forecast indicates that Los Angeles, Nashville, Tenn., San Diego, Portland, Ore. and Sacramento, Calif. are the top markets in which investors should consider buying industrial assets. Notably, four out of the top five “Buy” markets are in the western region with Southern California in particular benefiting from trade flows with China and Trans-Pacific commerce. However, the report cautions that the current political environment casts some uncertainty over the region’s recent trade benefits.

Ten-X also pinpointed Dallas, Baltimore, San Antonio, Suburban Maryland and Columbus, Ohio as the five markets where investors should consider selling industrial properties. While many of these markets boast solid economies and currently healthy industrial sectors, large supply pipelines and other factors leave them exceptionally vulnerable in the event of an economic downturn.

Nationally, Ten-X Research found that robust absorption has helped drive industrial vacancies down to just 7.6 percent – their lowest levels since 2000. With both supply and demand expected to soften through 2018 as the economic cycle matures, vacancies should bottom out in the mid-7 percent range. Rent growth has held steady in the mid- to upper-2 percent range over recent years, boosting rents across the sector to a historic peak. E-commerce continues to drive growth and demand for warehouse and distribution space. The increase in cloud computing is also creating an unprecedented need for data centers.

While oil prices have rebounded in recent months, they continue to hover around $50 a barrel, limiting the energy industry’s contributions to growth in the industrial sector. Their incremental rise has allowed for capacity utilization to trend upward over the course of the year. Industrial production has also seen a spike to its highest levels since 2014, though the increase is not the primary driver of the sector’s current success.

The report also noted trade flows have steadily improved over the course of the year, in part due to a resurgence in Asian intra-regional shipments and recovering import demand in North America. However, significant risks remain from protectionist policies, rising geopolitical tensions and a mounting toll from a series of natural disasters. While the Trump administration remains unsettled on a concrete tax plan, its decision not to pursue and pass a border adjustment tax is an encouraging sign for future trade growth.

“More than any other class of commercial real estate, the industrial sector has reaped the benefits of an economy and culture that is becoming more and more dependent on modern technology,” said Ten-X Chief Economist Peter Muoio. “Despite a prolonged slump in oil prices, these secular trends are boosting the segment. While much of commercial real estate’s future appears murky, the outlook for industrial remains strong.”

National industrial deal volume rose to $15.8 billion during Q2 2017, a 14.4 percent increase over a year earlier. Pricing across the sector rose to $80 per square foot during Q2 hitting an all-time peak. Ten-X Research forecasts that effective rent growth will exceed 3 percent through 2018 – the first time it will have topped that figure during the current cycle. Absorption is projected to turn negative in the event of a cyclical downturn, which would push vacancies back into the mid-9 percent range by 2020. However, this vacancy level would be well below that of previous downturns.  Rents are set to remain unchanged during a downturn.

The Industrial Sector’s Top Five “Buy” Markets:

Los Angeles

Robust demand for industrial properties has strengthened Los Angeles’ appeal to investors, outpacing completions by a wide margin and driving vacancies down to 3.2 percent in 2016. Even as the city’s economy is slowing, total employment remains near peak levels and the construction sector is enjoying healthy annual job gains of roughly 8 percent. Population continues to rise but after a 0.3 percent increase in 2016, the pace of growth has now slowed for five consecutive years. Ten-X Research expects industrial rents to continue to grow through 2021, though at a slower pace during the modeled recession scenario beginning in 2019. The combination of steady rent growth and low vacancies is expected to drive annual NOI growth of roughly 3 percent through 2021.

Nashville, Tenn.

Nashville’s favorable investment outlook can be partly attributed to robust employment and population growth. Nashville’s population jumped 2 percent in the past year – the third year in a row to record this level of growth – while total employment has climbed by 3.1 percent in the same timeframe. The city’s 3.3 percent unemployment rate also compares favorably to the national average. Strong industrial demand has pushed rents to an all-time high, while vacancies are projected to shrink to an all-time low of just above 3 percent by 2018. Rent growth is expected around the mid 4 percent range through 2018. Although Ten-X Research sees vacancies climbing above 6 percent based on a 2019-2020 recession model, they will edge lower as demand returns in 2021. Overall, net NOI growth should average approximately 2.9 percent per year over the next four years.

San Diego

While San Diego’s strong economy has shown recent signs of slipping, its industrial prospects remain among the brightest in the country. After several years of above-average performance, the city’s job growth is now tracking well behind the U.S. pace. Unemployment has held above the national average while population growth has slowed to 0.8 percent in 2016. Industrial vacancies are currently near 6 percent – a low for the current cycle and significantly below national levels. Rent growth hit a cycle-high 2.8 percent in 2016, and should continue to increase through 2018 as the local supply pipeline remains manageable. While an expected downturn in 2019-2020 would cause vacancies to rise and rent growth to contract, NOI growth should nevertheless average 2.5 percent annually through 2021.

Portland, Ore.

High 2 percent range job growth boosted Portland’s outlook as well as 1.7 percent population growth – Portland’s fastest pace in 10 years and more than twice the national average. The city’s main employer has been the transportation and utilities sector, which added jobs at a cycle-high rate of 6.8 percent in the past year. Strong demand for industrial space has managed to outpace the city’s strongest supply pipeline in 15 years. Rents are forecasted to rise by an average of 3.5 percent annually through 2018. Despite the 2019-2020 recession scenario predicted by Ten-X Research, Portland’s robust rent growth and below-average vacancies will yield average annual NOI growth of 2.7 percent through 2021.

Sacramento, Calif.

Peak population and employment levels make Sacramento an appealing market for industrial property investors. The city’s population has outpaced that of the country for over 20 years and jumped 1.3 percent last year alone – a cycle-high mark. While employment growth has slowed, it remains on par with national levels and the city’s total employment is 5 percent above its pre-recession peak. The sectors driving job gains include transportation/utilities and education/healthcare in which jobs climbed 4.2 percent and 6 percent, respectively, over the past year. The city’s industrial demand has stayed well ahead of supply and Ten-X Research expects this to continue through 2018 with vacancies falling below 10 percent and driving annual rent growth to 2.7 percent. Factoring in Ten-X Research’s 2019-2020 recession scenario, the city’s average annual NOI is forecasted at 2.5 percent through 2021.

The Industrial Sector’s Top Five “Sell” Markets:

Dallas

Dallas’ economy remains strong with annual employment growth of nearly 3 percent and low unemployment and population gains that have outpaced the U.S. average for a quarter-century. The city earns its place atop the “Sell” list due to an overwhelming supply pipeline that promises to wreak havoc on the city’s industrial market in the event of an economic downturn. Under a cyclical downside scenario, the unprecedented industrial demand is forecasted to decline steeply in 2019, returning 60 million square feet of space to market and sending vacancies back to recessionary levels. Rents are also expected to decline through 2021, while NOI should grow through 2018 before facing contraction in the next three years.

Baltimore

Baltimore’s economy is struggling as it continues its slow recovery since the recession. While jobs are at an all-time peak, the pace of growth has fallen behind national levels and unemployment is just above the national average at 4.4 percent. Population growth is at its lowest level in at least 25 years. While area industrial properties currently enjoy a vacancy rate of just over 10 percent – the market’s lowest figure on record –  weakening fundamentals are likely to have a large impact in the event of a cyclical downturn in 2019-2020. Current models indicate vacancies would exceed 12 percent by 2021, while slowing rent growth will flatten NOI to annual rate of just 0.9 percent over the same period.

San Antonio

While overall jobs, unemployment and population growth figures in San Antonio remain strong, projected negative absorption and a steady pipeline of new supply paint a bleaker picture for the city’s industrial sector. Vacancies currently measure just above 7 percent – up slightly from a cycle-low of 6.9 percent in 2015 – and are projected to climb to the mid-9 percent range with the arrival of new supply and the impact of a potential economic downturn in 2019-2020. Rents have surpassed their prior peak and should continue to grow through 2018 before contracting over the following three years. While vacancies should begin to decline in 2021, annual NOI growth is expected to average only about 1 percent annually in the interim.

Suburban Maryland

Suburban Maryland’s economy has rebounded over the last few months but that has done little to reverse much of the region’s long-term decline. Employment in the region’s wholesale trade sector has declined nearly 25 percent since 2007, significantly harming the industrial arena. The area also struggles with lagging population growth only measuring lower than 1 percent each of the last three years, trailing the national average. Industrial deliveries and demand were at cyclical highs in 2016 which should help reduce vacancies to 9.2 percent by 2018, according to Ten-X Research. However, under the recessionary scenario negative demand should increase vacancies by roughly 200 bps by 2020. NOI growth is expected to expand through 2018 before contracting and eventually flattening in 2021 as vacancies remain high.

Columbus, Ohio

Columbus’ demographics remains a bright spot in the Midwest, as strong growth in the city’s manufacturing and construction sectors have created jobs and fueled healthy population growth. Industrial vacancies have fallen to the 8 percent range as steady demand has helped absorb a spate of new supply, while rents have now risen for five consecutive years. However, if the economy were to turn, demand is expected to revers, driving vacancies back above 9 percent and halting rent growth. Annual NOI growth is forecasted at just 1.1 percent through 2021.

About Ten-X
Ten-X is the nation’s leading online real estate transaction marketplace and the parent to Auction.com, Ten-X Commercial and Ten-X Homes. To date, the company has sold 300,000+ residential and commercial properties totaling over $50 billion. Leveraging desktop and mobile technology, Ten-X allows people to safely and easily complete real estate transactions online. Ten-X is headquartered in Irvine and Silicon Valley, Calif., and has offices in key markets nationwide. Investors in the company include Thomas H. Lee Partners, L.P. CapitalG (formerly Google Capital) and Stone Point Capital. For more information, visit Ten-X.com.

SOURCE: Ten-X Commercial

Suzanne Cope Re-joins the Affordable Housing/FHA Team at Hunt Mortgage Group

Suzanne Cope Re-joins the Affordable Housing/FHA Team at Hunt Mortgage Group

NEW YORK/ Oct. 9, 2017 (StlRealEstate.News) — Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today that Suzanne (Suzie) Cope has re-joined the firm’s rapidly growing affordable housing/FHA group as Senior Vice President. She will be focused on originating and closing Affordable and FHA multifamily loans nationwide, with a primary focus on the Colorado area. She will be based in Denver, Colorado and will report to Paul Weissman, Senior Managing Director.

 “We are actively working to build our affordable and FHA platform, nationwide,” explained Weissman.  “Hunt Mortgage Group has been a long-established player in the affordable housing debt and equity finance markets, having sourced and originated affordable loans since the 1980’s.”

“Suzie is a veteran industry executive with extensive experience in loan origination in affordable and market rate mortgages and has a proven track record of success,” added Weissman.  “Her return to Hunt Mortgage Group signals her confidence in the expanded platform and the strong additions we have made to the group across the country. We are confident she will play a pivotal role in helping us reach our growth goals with the affordable group.”

Prior to returning to Hunt Mortgage Group, Suzie was a Senior Vice President in the Affordable Multifamily division of Bellwether Enterprise.  In her earlier role at Hunt Mortgage Group (then Centerline Capital Group), she was responsible for west coast originations of all debt financing activities for affordable multifamily housing.

“In her original position with our firm, Suzie helped to re-launch and fully develop an affordable housing lending platform at Hunt Mortgage Group.  This included Fannie Mae, Freddie Mac and FHA executions as well as affiliated executions for conduit and bridge lending for multifamily housing financing,” said Weissman.

Earlier in her career, Suzie was a Senior Account Manager with Fannie Mae in Los Angeles for five years, where she managed and structured transactions for affordable and market rate housing mortgage relationships.  She also worked on affordable housing product enhancements while at Fannie Mae. She currently sits on Fannie Mae’s DUS Originator’s Committee.

In 2014, Suzie was named one of Real Estate Forum’s “2014 Women of Influence” that honors women whose achievements have shaped the commercial real estate industry. She earned her Masters of Real Estate Development at the University of Southern California and a Bachelor of Science in finance and marketing from Tulane University.

Today we offer our clients an extensive variety of financing products helping them extend their businesses. “The need for quality affordable housing is strong across the country.  We are committed to addressing the shortage of housing resources for our ever-growing population, and the increasing interest of its communities to meets these needs,” concluded Weissman.

About Hunt Mortgage Group

Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $21 billion of loans and today maintains a servicing portfolio of more than $12.5 billion. Headquartered in New York City, Hunt Mortgage Group has 198 professionals in 24 locations throughout the United States. To learn more, visit www.huntmortgagegroup.com.

SOURCE: Hunt Mortgage Group

ISMIE Expands its Product and Service Lines in Missouri

ISMIE Expands its Product and Service Lines in Missouri

CHICAGO/ Sept. 28, 2017 (StlRealEstate.News) — ISMIE Mutual Insurance Company and ISMIE Indemnity announced plans today for expanded service and product offerings in the state of Missouri. With a recent updated rate filing, the companies will offer medical liability coverage for individual health professionals, groups and health care facilities. ISMIE plans to pursue new business in Missouri as a component of its national expansion plan.

“For many years, we at ISMIE have been proud to serve our Illinois policyholders who have extended their practices into the state of Missouri,” said ISMIE Vice Chairman Paul H. DeHaan, MD. “Today, we’re very pleased to offer Missouri-based professionals our entire suite of products and services that have been developed and provided over 40 years in one of the toughest medical litigation environments in America.”

“Our risk management program, claims support and practice-specific coverage flexibility have made us No. 1 in Illinois and will address the needs of policyholders in the national marketplace,” said Wayne de Nazarie, ISMIE Executive Vice President. “We look forward to working with our agency partners to address the specific coverage needs of professionals, groups and health care facilities throughout Missouri.”

ISMIE Mutual Insurance Company is the tenth-largest physician liability carrier in the nation.
The company, founded in 1976, is completely physician-owned. ISMIE is rated A- (Excellent) by A.M. Best. ISMIE Indemnity is a wholly owned subsidiary of ISMIE Mutual.
Dr. DeHaan practices orthopedics in McHenry, Illinois.
www.ismie.com

SOURCE: ISMIE Mutual Insurance Company

DebtX: CMBS Loan Prices Increase In August

DebtX: CMBS Loan Prices Increase In August

BOSTON, Sept. 28, 2017 (StlRealEstate.News) — DebtX, the largest marketplace for loans, said today that prices of commercial real estate loans underlying CMBS rose slightly in August.

During the month, the estimated price of whole loans securing the CMBS universe increased to 98.7% from 98.2% at the end of July 2017. Prices were 99.6% in August 2016.

 “In August, we saw another modest increase in loan prices resulting from the decrease in U.S. Treasury yields,” said DebtX Managing Director Will Mercer.

As of the end of August, DebtX priced $1.42 trillion in commercial real estate loans that collateralize U.S. CMBS trusts. From last month, the median adjusted loan-to-value remained at 58%, and the median debt service coverage ratio was 1.52. The median estimated loan yield decreased to 4.1%.

DebtX provides third-party loan valuation services for both public and private clients, as well as analytics and data based on over a decade of secondary market loan sales at DebtX. To learn more, call 617.531.3429 or for information about loan sale advisory services, call 617.531.3400.

About DebtX
DebtX operates the world’s most liquid marketplace for loans. Through its loan sale advisory, DebtX maximizes loan sale proceeds for financial institutions and government agencies. DebtX also provides loan valuation, analytics and market data for regulatory and audit purposes. For syndication, agency, and loan sale professionals, DebtX provides a suite of web-based deal management solutions. For loan originators and risk managers, DXScore® is the firm’s credit rating system for commercial real estate loans. DebtX is based in Boston, with offices across the U.S., South America, Europe and Asia. Call 617.531.3400 or visit www.debtx.com. Follow DebtX on Facebook, Twitter and LinkedIn.

SOURCE: DebtX

St. Louis should look past the Amazon bid

St. Louis should look past the Amazon bid

ST. LOUIS, MO/September 27, 2017 (STLRealEstate.News) Many guest columnists this week proclaimed that though the Amazon build-out selection would be an enormous victory for St. Louis; but they also feel that this city should still look to invest in itself without any outside help.  Mayor Lyda Krewson has no doubt put together a “very competitive” bid for why St. Louis should be the location of Amazon’s next major headquarters.  Pundits are weighing in, arguing that selecting St. Louis would be detrimental to working-class people, the St. Louis housing market and rising prices.

Those concerned with rising inequality are afraid an Amazon selection would out price homes, apartments, and local standards of living for those already struggling to cope with the rising real estate and property assessment values amid the increasingly popularity of St. Louis.  Residents are struggling to keep up with the limited supply that is driving up prices overnight.  These same people argue that an Amazon headquarters would attract an upper-class segment of individuals who would surely push out the long-time middle and low-class residents of the St. Louis region.

Big tech companies, too, have a bad track record in urban development.  Google has raised hackles and rents in San Francisco, which now has the highest cost of living in the entire country.  Amazon has already taken over Seattle, filling developers’ pockets while pushing low-income folks out of their homes through spiked housing rates.  Additionally, tech companies tend to employ 71 to 75 percent white people, further alienating a massive portion of the St. Louis population.

Local residents are arguing that STL should instead focus on investing in itself.  Public money needs to be invested into public services, like schools and other things that can improve upon the city’s workforce.  Additionally, move effort can be made to invest in local businesses and entrepreneurs, thereby uplifting the surrounding community and improving upon the city culture.

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By Alexandra R. Fasulo – published on STLRealEstate.News by STL.Properties

Athletico Physical Therapy Acquires The Work Center

Athletico Physical Therapy Acquires The Work Center

OAK BROOK, Ill./ Sept. 22, 2017 (StlRealEstate.News) — Athletico Physical Therapy announced a definitive agreement to acquire The Work Center, a leading industrial rehabilitation provider with nine clinics in the St. Louis, Columbia and Jefferson City, Missouri areas specializing in physical and occupational therapy for work-related injuries.

This acquisition marks Athletico’s first entry into the Columbia and Jefferson City markets and strengthens its existing presence in St. Louis. Following the closing of the transaction, Athletico will serve patients at nearly 400 locations across ten states. The Work Center clinics will remain open and fully staffed to serve current and new patients. Athletico’s CEO and President, Mark Kaufman, will continue to lead the company, which will maintain its headquarters in Oak Brook, Illinois.

“We’re very excited to combine forces with The Work Center, a reputable provider of workforce performance solutions and Industrial Rehabilitation,” said Kaufman. “In addition to expanding our geographic footprint, this purchase also enables Athletico to provide greater support to our patients through broader industrial service offerings and a menu of injury prevention programs, which help organizations of all kinds to save money and increase productivity.”

“Both of our companies were founded by clinicians and have a strong focus on patient care and satisfaction,” said Michael Fallwell, Founder and President of The Work Center.  “These common values are why this partnership makes sense. We also bring several distinct services and approaches to the industry that will complement each other’s strengths and allow us to expand on what we collectively offer patients.”

About Athletico
Athletico Physical Therapy provides the highest quality orthopedic rehabilitation services to communities, employers and athletes in nearly 400 locations throughout ten states with more than 4500 employees. Athletico is committed to our patients and referring physicians through our patient-centric focus, positive work environment, attention to quality and high standard of care. Athletico measures patient outcomes and satisfaction and is dedicated to continuous improvement. Athletico was named #1 Workplace in Chicago, “Best Physical Therapy Practice in the Nation” by ADVANCE magazine, Top Workplace in the Nation, and has been recognized as a leader in employee volunteering and charitable giving. Our services include physical and occupational/hand therapy, workers’ compensation, women’s health therapy, concussion management and athletic training. For more information, or to schedule a free injury screening, please visit www.athletico.com and follow us on Twitter at @Athletico.

SOURCE: Athletico Physical Therapy

Building Facelifts, New Construction Underway in Twin Oaks Development

Building Facelifts, New Construction Underway in Twin Oaks Development

Twin Oaks Project Giving Krieger’s, Other Retailers Fresh Facade

Twin Oaks, MO/September 20, 2017 (STLRealEstate.News) – Everyone can appreciate a makeover. There’s just something wonderfully rejuvenating about freshening up.  It can have a transformative effect.  When the redo involves redeveloping an underused section of a small community in a way that will nearly double its population, the impact is significant.  So, it’s no small matter that the once tired-looking, largely vacant Big Bend Square Shopping Center in Twin Oaks is getting a major facelift.  The project by St. Louis-based developer Haley Holdings Seven LLC and Weldon Springs-based Propper Construction Services is bringing new things to the tiny West County village, and a fresh face to some longtime local businesses, including the popular Krieger’s Hometown Sports Bar.

The Villages at Big Bend Square include a five-story mixed-use apartment building with ground-floor retail space.  The project will create more than 200 new apartments and incorporate about 45,000 square feet of retail space in the finished design.  Just over 25,000 square feet of existing retail will remain, with another 20,000 square feet being added, including a 3,000-square foot single-use building being constructed along Big Bend Road.  The development represents a $60 million investment in the small Village of Twin Oaks.

The 11-acre tract of land under development sits just south of Big Bend Road and east of Hwy 141, across the street from the new Twin Oaks government building.  Local officials had been looking for about ten years for some use for the land and large building left vacant when Schnucks Market relocated to their new site north of Big Bend.  That old grocery store was razed in June to make way for new construction.

As part of the project, a strip of adjacent shops and restaurants are getting a makeover intended to update their appearance and add appeal.  That part of the project was complicated when demolition crews discovered the stores’ electrical systems were all tied to the old Schnucks building, according to Haley Holdings Seven’s Tim Breece.  The electrical complication meant relocating the transformer for the existing businesses and doing some rewiring.  The architectural facelift for the existing stores will include new facades for everyone, and a gleaming new, heated patio for Krieger’s Hometown Sports Bar.  The work on this phase of the project should be completed by the end of November.  Improvements inside the restaurant and sports bar are also slated to be finished by that time.

Breece says the existing shops have been very welcoming of the development.  “Our projects have been very well received by the community,” he said.  “I think our tenants in the shopping center are going to do very well as a result of the upgrades and improvements to the center,” Breece added.  Shop owners anticipate new customers being drawn to their businesses, thanks in part to the 219 high-end luxury apartments under construction.  When the full project is completed by the end of 2018, it is anticipated that those apartments will house 300–350 new residents, a 70–80 percent population gain for the Village of Twin Oaks.

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Susan Smith-Harmon – published on STLRealEstate.News by STL.Properties

St. Louis free restaurant space competition winner announced

St. Louis free restaurant space competition winner announced

ST. LOUIS, MO/September 20, 2017 (STLRealEstate.News) After months of rigorous competition and amazing submissions by entrepreneurs and business owners around the St. Louis region, an urban farming nonprofit is the official winner of a contest for free restaurant space in St. Louis’ Old North area. James Forbes, and his partners at Good Life Growing, the head of the nonprofit, will be opening Old North Provisions, a restaurant, grocery store, and co-op at 2720 N. 14th Street.

Old North Provisions will offer its own and other local produce on the warehouse shelves, a buffet line, and take-out packages for those who are on the go. Forbes stated to the St. Louis Public Radio that his operation would provide an alternative to neighboring Crown Candy Kitchen, known for its ice cream and hearty, mostly unhealthy, sandwiches. “I love Crown Candy, don’t get me wrong,” said Forbes. “But we can offer something else besides a BLT, a burger, and a shake.”

Forbes and the three company co-founders, Matt Stoyanov, James Hillis, and Robert Forbes, are known for their kale growing, tomatoes, and another vegetable harvesting in the 20 urban gardens around northern St. Louis today. Experimenting with futuristic botany, the founders grow food using methods that don’t rely on soil, such as hydroponic environments, which use only water today.

Through their newly established Old North Provisions, the partners will be able to offer a daily buffet that includes comfort food, minus the thousands of calories found at other establishments today. “Like a healthier version of biscuits and gravy, a lot more baked and grilled items as opposed to deep-fried,” said Forbes.

Forbes went on to confirm that they plan to charge from $6 to $9 for the buffet. They will portion out excess food into meals, seal them into deliverable packs that are ready to microwave or boil, and offer those up at a slightly less price of $5 to $7.

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By Alexandra R. Fasulo – published on STLRealEstate.News by STL.Properties

St. Peters to receive a new FedEx facility

St. Peters to receive a new FedEx facility

ST. LOUIS, MO/September 20, 2017 (STLRealEstate.News) Missouri development company, Scannell Properties, this week submitted a plan to the city of St. Peters for the initial evolution of a FedEx facility build-out, which is estimated to cost close to $24 million by the time it’s completed.  The Indianapolis developer, who has nearly 114 acres in St. Peters under contract at this time, plans to build a new 491,252-square-foot distribution facility for the massive FedEx corporation.  Many real estate sources familiar with the deal at this period stated that the installation is most certainly under contract for FedEx.

The terms of the real estate deal were not disclosed at this time.  The properties, according to St. Charles County records, have a combined total market value of more than $250,000.  Also in on the deal, Lakeside 370 Levee District and Stonewolf Inc.. a business entity tied to St. Charles-based new Frontier Bank, own part of the site that is under construction.

When approached by KSDK.com to discuss plans for the future project, Scannell officials declined to provide any details.  Russ Batzel, the St. Peters city administrator today, stated that construction could start as soon as this fall depending on when the transaction officially closes.  A FedEx spokesman also spoke up, saying that the company, “continuously evaluates the need for additional facilities and routinely talks with real estate agents, developers, and government officials.  We do not publicly discuss specifics of a project until all the details have been finalized.”

FedEx is no stranger to the St. Louis region.  The shipping giant has 3 shipping centers in the area, one in Earth City at 13342 Lake Front Drive; one in Berkeley at 6143 James S. McDonnell Blvd.; and one in Maplewood at 3025 St. Hanley Road.  It is not clear at this time what the St. Peters location will mean for the other three.

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By Alexandra R. Fasulo – published on STLRealEstate.News by STL.Properties

Cushman & Wakefield Analyzes Implications of U.S. Immigration Policy

Cushman & Wakefield Analyzes Implications of U.S. Immigration Policy

New York, New York/ September 19, 2017 (PRWEB) (StlRealEstate.News) The Trump administration is currently debating several changes to U.S. immigration policy. Cushman & Wakefield released a study on how those shifts could impact commercial real estate and corporate occupancy, specifically.

Known as the RAISE Act, the proposed legislation would impose:

A reduction in total legal immigration over the coming decade.
A change in how immigrants are prioritized and granted access to the U.S.
A hard limit on the number of refugees allowed to enter the country each year (50,000).

“Certain industries such as ours are likely to be disproportionately impacted by these proposed changes,” noted Cushman & Wakefield’s Revathi Greenwood, Americas Head of Research. “Legal, foreign-born workers fill 31 percent of buildings/grounds maintenance jobs and a quarter of construction positions. Limiting their access into the U.S would exacerbate the shortage of workers these sectors already face.”
Further, since 2000 the number of foreign-born workers employed in the U.S. has increased by 42 percent, with management/professional occupations representing the fastest-growing category over that time (+75 percent). An estimated 3.5 million foreign-born residents work in the management and business field – a main driver of office demand.

Gateway Cities and Beyond
Just under half of all U.S. population growth in 2017 will be due to immigration.
“Historically, immigrants have been drawn to gateway cities in the U.S. in addition to a handful of other large coastal cities. Chicago, Houston, Los Angeles, New York, and Philadelphia are the five cities with the largest immigrant populations,” said Cushman & Wakefield Economist Rebecca Rockey, Head of Forecasting, Americas. “Not only do immigrants make up nearly one-third of the populations in these markets, but for some of them, immigration has driven population growth there in the two decades from 1995-2015.”

However, immigrants are beginning to move away from the country’s gateway markets. In 2006, 41 percent of people obtaining permanent resident status resided in one of the six gateway markets. However, in 2015 the percentage dropped to 36 percent. During that same decade, the number of people obtaining permanent resident status in seven other cities clustered on the West Coast, in Texas and in the Midwest increased by over 3 percent.

Commercial Real Estate Correlation
Cushman & Wakefield’s study drew a positive correlation between markets with large immigrant populations and real estate fundamentals. “The five non-gateway markets with the most new immigrants between 1995-2015 – Miami, Houston, Dallas, Atlanta, and Silicon Valley – saw dramatic increases in employment and office inventory over the same period,” explained David C. Smith, Head of Occupier Research, Americas. “During that 20-year period, annual net absorption in these five cities was three times the national average. And, absorption has actually been accelerating over the past five years.”

“Of course, it remains to be seen what, if any, immigration policy changes will finally be implemented, and the devil is in the details,” Greenwood said. “However, if the changes lower the number of work visas available, those reductions will likely create challenges for employers already stuggling to find suitable talent.”
Cushman Wakefield’s full “U.S. Immigration Policy: Potential Impact on CRE” report is available at http://www.cushmanwakefield.com/en/research-and-insight/2017/cre-immigration-policy-impact. Sources cited include the U.S. Census Bureau, Department of Homeland Security, Pew Research Center, Bureau of Labor Statistics, United Nations and Office of Foreign Labor Certification.

About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit http://www.cushwakecentennial.com, http://www.cushmanwakefield.com or follow @CushWake on Twitter.