(third of three posts)

This is our last post detailing the results of our CRE survey. Responders were asked to predict how each sector of Middle Tennessee commercial real estate will preform in 2012 compared to 2011.

Multi-family topped the list of commercial real estate sectors, with 79 percent of responders predicting that the multi-family sector will perform better or much better in 2012 than last year. The office and retail sectors were also viewed favorably, with 66 and 58 percent expecting better or much better performances in 2012, respectively.

Commercial real estate insiders are least optimistic about the land and industrial sectors, with eight and seven percent, respectively, of responders banking on a worse performance in 2012 compared to 2011.

When compared to other sectors, the outlook for land sales looks a bit less promising, but when put into the context of last year’s survey, optimism appears to be rising slightly in this sector. Last year, only 24 percent of survey takers felt that the land sector would perform better or much better than 2010. This year, that statistic has jumped 13 percent to 37.

A majority (56 percent) of responders believe that the real estate-owned (REO) sector will remain constant in 2012.

Check out the 2012 Sales Outlook.

Check out the 2012 Leasing Outlook.

(second of three posts)

This is the second entry that outlines the results of a survey that we conducted of local and regional commercial real estate brokers, developers, building owners and investors. The survey asked responders to assess the mood of the marketplace in three categories: sales, leasing and sectors.

The first post talked about sales, this post will focus on leasing.

Commercial leasing polled better than sales, with 74 percent of responders indicating that leasing will be better or much better than last year. Twenty-three percent claimed no change, and four percent expect leasing to be worse or much worse this year.

Confidence in the improving economy and increased activity in the pipeline topped the reasons for an improved leasing environment, as well as an improving jobs market.

On the other side of the argument, current low vacancy rates have 13 percent of responders believing that leasing cannot get any better. “There is less space, so activity will be better, but leasing may fall short due to a lack of supply,” one responder explained.

The elections, whether good or bad, factored into nine percent of respondents’ leasing considerations.

For a bit of perspective, check out our 2011 Leasing Outlook here.

1. Empty big boxes answer the call — Nashville Ledger (link)
2. High-end rentals top residential trends — Nashville Ledger (link)
3. Middle Tennessee poised for new construction in rejuvenated office, residential, retail markets — Nashville Ledger (link)
4. Midstate retail trends toward mixed-use development — Nashville Ledger (link)
5. N.Y. law firm close to moving into Nashville’s Ragland Building — Nashville Business Journal (link)

1. Church next to Gaylord’s new amusement park to move — Nashville Business Journal (link)
2. Highwoods puts office towers on sales block — Nashville Business Journal (link)
3. May Town Center’s failure makes court a hot spot — Tennessean (link)
4. MTSU gets about 220 acres for use as field lab — Nashville Ledger (link)
5. Work slated to begin on Echo at Encore — Nashville Post (link)

(first of three posts)

Last month we conducted our 2^nd Annual 2012 Middle Tennessee Commercial Real Estate Survey. Seventy-nine commercial real estate brokers, developers, building owners and investors took the survey, which gauged expectations about local sales, leasing and sector activity in 2012.

I am going to present the survey results here, in a series of three posts, beginning with the first category: Sales.

Sixty-four percent of respondents believe that sales of Middle Tennessee commercial real estate will be better or much better in 2012. That’s down from 87 percent of survey takers last year. Thirty-two percent expect sales to be stagnant in 2012 compared to 2011.

The election was the primary reason behind the sales outlook, with 17 percent of responders citing concerns about the elections. “The elections are bringing some hope that there will indeed be positive change for businesses and in turn an increase in jobs,” one responder wrote. “I know a lot of owners that are sitting on capital until they know the outcome of the election,” another added.

Other factors in the sales outlook included an easing in restrictions on lending and financing, the slowly improving economy and increased activity in the pipeline.

When we surveyed our local CRE community last year, a loosening of lending and financing policies was the top reason cited for the optimistic sales outlook. The same is essentially true this year, but the elections are clouding the outlook. We won’t know until the elections are over whether the local market will be worse or better off.

1. Apartment, retail development is bound for Hillsboro Village — Tennessean (link)
2. Local CRE folks: Federal politics our biggest roadblock — Nashville Post (link)
3. Nashville Nightlife dinner theater sells for $2.4 million — Nashville Business Journal (link)
4. TriMont Real Estate Advisors Sells The Clairmont for$2.8M — CoStar Group (link)
5. Walmart to open Wednesday — Nashville Post (link)

In June 2011, HealthSpring executed a lease with us for Phase II of its MetroCenter office campus at 530 Great Circle Road. When complete, the campus will house employees from two of the three buildings HealthSpring currently occupies in MetroCenter.

We broke ground on Phase I of development in November 2010. Phases I and II of the project total 175,000-square-feet of office space and 997 parking spaces. The development sits on 21.10 acres overlooking Amulet Lake.

Southeast Venture’s in-house architecture and interior design group provided the design for the project and the firm’s property management arm will handle all day-to-day aspects of the property’s long-term operation and maintenance.

Our partnership with HealthSpring has been a truly valuable for us and for MetroCenter – a partnership that we hope to continue for a long time. It’s been an exciting project to spearhead and see through completion. Phase I of construction has finished and employees have moved in. Phase II is scheduled to wrap up in May.

Integral partners in the HealthSpring development included T.W. Frierson Contractor, Inc., Harvest Construction Company, Hodgson & Douglas, LLC and Barge Cauthen & Associates.

Michael Finucane

With the Industrial Lease of the Year award, NAOIP recognized Michael’s role in the leasing of 518,400-square-feet at 1706 Heil Quaker Blvd. by Griffin Technology. The site in Interchange City serves as a distribution facility for the firm.

Michael joined Southeast Venture in 1997 from the Trammell Crow Company, where he managed their Nashville industrial portfolio. At Southeast Venture, he concentrates primarily in brokering office and industrial transactions.

In addition to Griffin Technology, Michael has represented such clients as H.G Hill Realty, Duke Realty, Digital Reasoning, Espaces, Essex Technology Group, Spectra Metal, Thompson Caterpillar, Kemberton Healthcare and Cumberland Consulting Group.

In 2011, Southeast Venture completed over 758,000-square-feet of industrial leasing, making it  one of our best years on record in the industrial sector. These transactions represented new leases in the LaVergne market and helped absorb a lot of vacancy. We were fortunate to have the opportunity to work with some expanding clients at a time when the market was ready for some good deals.

1. Dave Ramsey buys Spring Hill strip mall — Tennessean (link)
2. Downtown Nashville waits for retailers to move in — Tennessean (link)
3. Lebanon votes against proposed events center — Nashville Business Journal (link)
4. MDHA appeal to protract convention center fight with Tower Investments — Nashville Business Journal (link)
5. What’s going on at West End Summit? — Nashville Business Journal (link)

1. City scraps plan to buy Nashboro Village golf course — The City Paper (link)
2. Rolling Mill Hill project sells for $11.4 million — Nashville Business Journal (link)
3. Saks plans major distribution center in La Vergne — Nashville Business Journal (link)
4. SoBro site sells for $1.4 million — Nashville Business Journal (link)
5. With end to Nashboro Village plan, residents worry they won’t get a park — Tennessean (link)

1. Nashville apartment building boom hits pivotal year — Nashville Business Journal (link)
2. November construction spending up 1.2 percent — Tennessean (link)
3. Region’s real estate markets carrying momentum in ’12 — Nashville Post (link)
4. Report: Nashville’s industrial market rebounds — Nashville Business Journal (link)
5. Report: Office market continues to improve — Nashville Business Journal (link)