the Editors of Commercial Property Executive
DCT Industrial Sees Strong Leasing Activity in Memphis
DCT Industrial Trust Inc., a Denver-based industrial REIT, has signed more than 770,000 square feet of leases in Memphis, including two companies that expanded and a new client.With these leases, DCT Industrial’s operating portfolio in Memphis is 96.9 percent leased. The REIT owns or manages 5.4 million square feet in 11 buildings in Memphis and has one 885,000-square-foot building under development.DCT Industrial’s new customer is Quebecor World Logistics, a distributor of catalogs, publications and newspaper inserts, which leased a 149,000-square-foot bulk distribution facility for 39 months.Mallory Alexander International Logistics, a third-party logistics company which has its corporate headquarters in Memphis,…
Survey Predicts Substantial Growth in Datacenters Over Next 12 Months
In a new survey just released by Digital Realty Trust Inc., 86 percent of respondents, more than 300 senior IT decision-makers at Fortune 2000 companies, said their organizations will “definitely or probably” expand their datacenters in the coming 12 months. Of specific interest to the commercial real estate industry are the survey’s findings that:* Among the companies that plan to expand their datacenters, 83 percent expect to expand the physical space.* Forty-five percent of respondents plan to expand in three or more locations.* The projected size of an average expansion is 15,000 square feet, a figure that’s up 50 percent…
Procter & Gamble Leases 1.2MSF Suburban St. Louis Industrial Building
In an effort to fulfill its need for a large block of industrial space in the St. Louis area, Procter & Gamble has signed a lease that will expand an existing 580,000-square-foot distribution center into a 1.2 million -square-foot facility. Known as Westway III, the existing structure that will be doubled in size for P&G’s use was developed last July by Trammell Crow Co. and Kennedy Associates/MEPT/NewTower within Edwardsville, Ill.’s 2,300-acre Gateway Commerce Center park. Westway III is part of the partners’ development project that will ultimately offer up to 14 million square feet on 1,200 acres within GCC. Until its…
Boxer, Real Estate Hotshot Sells Stake in Promotions Business
Oscar De La Hoya, owner of real estate development company Golden Boy Partners, has entered into an agreement to sell shares in his Los Angeles-based boxing promotions firm Golden Boy Promotions to sports and entertainment venue developer and presenter AEG. As per terms of the deal, De La Hoya will remain majority shareholder in Golden Boy Promotions, and AEG will own the second largest interest in the company. By bringing AEG aboard, Golden Boy will be able to have a celebrated industry player as a partner in the global promotion of events in AEG’s arenas, as well as in the exploration…
Service Counts
Choice Hotels International Inc. prides itself on its relationship-building efforts. According to francishees, the extra effort is paying off.Take Dave Swift, owner of the 105-key Cambria Suites in Appleton, Wis. The president & CEO of Swift Hospitality Group took a chance on Choice’s new upscale brand, which is geared toward Generation X travelers. Swift believes the brand will find fans among travelers of all ages and has already heard praise from many guest on the all-suites hotel’s design. The Appleton property, which opened in 2007, was the second Cambria Suites to launch. “We get comments from our guests who say…
Dubai Hoteliers Surge as Part of Global Hospitality Explosion
Growth of global markets is providing an array of opportunities for hotel companies to expand worldwide. And certain pockets are exhibiting particular potential. The United Arab Emirates, for instance, is becoming a hot spot for global hotel development, with a couple of different focuses: “Dubai wants to be the financial center of the Middle East and wants to set itself up as an alternative tourist destination,” said Lodging Econometrics Inc. president Patrick Ford. The emirate has a pipeline of 156 luxury and upper-upscale hotel projects totaling 56,000 rooms. Abu Dhabi, by contrast, has positioned itself as more of a cultural…
Pipeline Preparation
Given the green building movement’s momentum, some sources suggest it might be difficult for a single body to rate all the existing and new buildings seeking certification. Dan Winters, managing principal at specialty realty advisor Evolution Partners in Washington, D.C., and chairman of his local U.S. Green Building Council chapter, points to the volume faced by the council, given there are some 25,000 buildings set to join the existing 1,200 or so LEED-certified commercial properties. “Their ability to certify in a timely fashion will make or break that rating system,” he declared.The huge pipeline helps explain the Green Globes alternative’s…
Innovation & Expansion
In the face of a cooling economy, some single-tenant retailers are taking some purposeful and in some cases innovative steps to boost their performance. Real estate investors would do well to evaluate those moves carefully.Fast Food. Higher fuel prices and rising food costs are already driving more consumers to affordable food options, but fast-food market leaders are also generating increased sales by offering diversified menus and extended hours. McDonald’s Corp., for instance, has introduced new salads, snack wraps and breakfast items, a move that is expected to position the fast-food giant for continued growth through 2008. Restaurants. Concerns over discretionary…
Falcon Flies: Investment Advisor Expands Foreign Representation
Editor-in-chief Suzann D. Silverman spoke with Howard Hallengren, chairman of Falcon Real Estate Investment Co., about his company’s business. Hallengren co-founded the company in 1991 to represent foreign investors in U.S. real estate after providing similar services through Chase Manhattan Bank’s international private banking group in the 1980s. For more on how Hallengren sees foreign investment changing, see the May issue of CPN or search for key words “Howard Hallengren” in quotation marks.CPN: A lot of your clients are from Europe and the Middle East. Do you anticipate expanding your client base further? Hallengren: We are currently working with a…
Home In on Green Ratings
Home builders have lamented in recent years that the U.S. Green Building Council’s Leadership in Energy and Environmental Design standards for office and institutional properties apply to single- and multi-family properties awkwardly. To wit, the National Association of Home Builders, along with the International Code Council, began working on the National Green Building Standards’ early predecessor, the Model Green Home Building Guidelines, in 2004, long before the LEED for Homes, or LEED-H, system was born.Although Jeff Oberdorfer, executive director for sustainable development pioneer First Community Housing, stressed that he welcomes the new LEED-H system, in which his company is participating…