Browse Tag: seattle

Commercial Real Estate News Roundup for Sept. 10, 2014

Phoenix_AZ_Downtown_from_airplane

Disrupting the taxicab industry is a job that needs more elbow room, the rise of the “dirt REIT”, and Phoenix, AZ (pictured above) rises from the ashes like a…well, like a Phoenix.  It’s all here in the Commercial Real Estate News Roundup for September 10, 2014

General

Some Retirement Plans Include Private Commercial-Property Funds, WSJ, Sept. 5, 2014 – The 401(k) industry is learning that commercial real estate is an earner when equities don’t quite meet expectations.

Brokering New Ground in California Commercial Property, WSJ, Sept. 2, 2014 – The double-commission comes under scrutiny in the Golden State legislature.

 

Office

Conshohocken, Pa., an Old Steel Town, Now an Office Hub, New York Times, Sept. 2, 2014 – Renovation, restoration and new vision in Pennsylvania’s steel country leads to a white-collar boom.

Prominent L.A. developer to build unconventional office at Playa Vista, LA Times, Aug. 28, 2014 – A major shaper of the downtown Los Angeles skyline returns to the development world, plans in hand.

Uber has already outgrown its brand new offices, SF Chronicle, Sept. 4, 2014 – Taxi-industry-demolishing web application’s home offices grow too fast for their floorspace. No word if Uber drivers will haul any packed-up boxes on moving day.

Silicon Valley Offices Are Stunningly Pricey, Just Like the Workers Inside, Wired, Sept. 3, 2014 – “You have to spend money to make money,” observes everybody who ever made money. Coincidentally, spending money is a great way to lose money, but few in Silicon Valley would admit it.

 

Industrial

Shovels are turning for Twin Cities industrial projects, Minneapolis Star-Tribune, Sept. 6, 2014 – Twin Cities Metro area enjoying an industrial resurgence as projects aim to fill in the space between the 10,000 lakes.

Tesla: Envisioning the impacts on life in Nevada, Reno Gazette Journal, Sept. 6, 2014 – Big doings promised in the desert, as a 5 million square foot battery factory is planned by Tesla Motors.

 

Retail

Looking for retail, office space in downtown Mobile? Try this new tool, Alabama.com, Aug. 26, 2014 – Handy snapshot of retail space opportunities in downtown Mobile, AL.

SouthCoast malls adapt to fend off e-commerce giants, South Coast Today, Sept. 7, 2014 – Physical shoppers: they exist, they spend money, they prefer laying hands on product and they’re not all over 30. Take heart, retail sector.

Retail vacancies at five-year low, North Jersey.com, Sept. 2, 2014 – Absorption in the Garden State has driven vacancies down.

 

Multifamily

What slowdown? Phoenix, Valley cities considering a number of real estate projects, Phoenix Business Journal, Sept. 2, 2014 – The jewel in the desert, so recently marked by bustout residential developments, has picked up steam in the multifamily sector.  Booms and busts come and go, but demand remains.

Many in Seattle are taking a stand against rise of micro-apartments, Seattle Times, Aug. 28, 2014 – Dorm-style housing is enjoying a boom in Seattle, but are residents happy with what comes attached?

 

Land

Time to Buy the Farm? WSJ, Sept. 7, 2014 – Ladies and gentlemen, presenting dirt REITs.

Virginia farm real estate value increases, Hampton Roads Pilot, Sept. 2, 2014 – Tobacco and other cash crops are driving prices skyward in Virginia.

 

Amazon’s Landlord Puts Tech Giant’s HQ On The Market

Amazon HQ For Sale

Amazon’s HQ is on the market.  The 11-building campus in Settle South Lake Union area has no set asking price, but area comps suggest the property could move for about a billion dollars, once somebody adds it to their shopping cart and clicks “check out”.

In 2012, new Seattle office properties including 1918 Eighth, The Russell Investments Center, and 818 Stewart each have set the pace in the area by selling for between $525 and $558 per square foot. If the Amazon buildings go for $550 a square foot, the price of the 1.8 million sq. ft. campus adds up to $990 million. Marc Stiles’s piece in the Puget Sound Business Journal paints a picture of market factors coming together to prompt the landlord to take a closer look at their portfolio.  Specifically: historically low interest rates and very healthy valuations for leases to Fortune 500 companies.

The Amazon.com headquarters is 1.8 million square feet, with Amazon in 1.7 million square feet. Restaurants and retailers rent the rest of the space that Healey said is 93 percent occupied.

If the buildings sell for $550 a foot, the sale price would be $990 million.

Peter Shorett, executive vice president of Valuation Advisory Services for commercial real estate brokerage Kidder Mathews in Seattle, said he would not be surprised if the Amazon property sells for “north of $500 a foot.”

The price will depend on how long Amazon’s lease is, and what the rental rate is.

Healey said Amazon’s leases run for between 14 and 16 years. Amazon began moving in several years ago and will move in later this year to the final phase of the property, which is under construction.

[…]

Vulcan Real Estate, the real estate investment arm of Seattle-based Vulcan Inc., is selling for two reasons, [Vulcan VP] Healey said.

The first is to rebalance the company’s portfolio. This will reduce Vulcan’s exposure to having so much space leased to Amazon.

In addition, interest rates are at historic lows, and the value of top-tier assets leased to Fortune 500 companies with strong credit is high.

“We want to take advantage of the confluence of these events,” Healey said. “In other words, it’s a good time to sell.”

 

PHOTO CREDIT: Anthony Bolante, Puget Sound Business Journal