Savannah-area labor picture brightens in first quarter | savannahnow.com

Savannah-area labor picture brightens in first quarter | savannahnow.com

An excerpt from the article above:
"Savannah’s labor pains are easing with the birth of the economic recovery.
The unemployment rate for the Savannah area, which includes Chatham, Bryan and Effingham counties, matched a 29-month low in March. The estimated total number of non-farming jobs remains well off pre-recession peaks — down more than 9,000 – but several key sectors are showing gradual improvement.
Unlike early 2011, when a surge in tourism significantly boosted the number of jobs during the late winter and early spring, 2012’s first quarter saw 1,800 net new jobs spread across several sectors.
Manufacturers, professional and business service providers and government ramped up hiring in the first three months. The additions more than offset the losses in retail positions related to close of the holiday season."
- Savannah Morning News, Adam Van Brimmer

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Local real estate firm Mopper-Stapen separates commercial division (NAI Savannah), auction arms off from residential brokerage | savannahnow.com

By Adam Van Brimmer Savannahnow.com

Mopper-Stapen Realtors made its name as a residential brokerage, capitalizing on the historic district’s renaissance over the last 31 years.
The firm was founded to serve the commercial sector, however, and has always been a player in the retail, office and industrial markets as well as in housing.
To better market all the services the company offers, Dicky Mopper has broken the firm he and partner Mike Stapen started into three parts: Mopper-Stapen, Realtors on the residential side; NAI Savannah for commercial real estate; and Value Auction Company, which handles both property and estate sales.
“We’ve gotten to the point where we felt like our commercial side wasn’t getting the play it deserves,” Mopper said. “It’s hard to be both a residential and commercial brokerage because if people know you mainly as one thing they question your expertise in the other. So it’s important to differentiate and end the confusion.”
Mopper and Rex Benton head NAI Savannah, with Benton managing the day-to-day operations of the commercial brokerage. Benton is a Savannah native who returned to his hometown four years ago after working 15 years in Atlanta.
Benton helped Mopper affiliate with NAI, an international network of commercial real estate firms with 375-plus offices in 55 countries. Mopper rebranded the firm’s commercial arm as
NAI Savannah in February 2010 with the intention of spinning it off.

Read entire story: Local real estate firm Mopper-Stapen breaks commercial property, auction arms off from residential brokerage | savannahnow.com

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors, is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

GlobeSt.com - Unimpeded by Legacy Distress, Healthier Banks Making CRE Loans - Chief Economist Article

GlobeSt.com - Unimpeded by Legacy Distress, Healthier Banks Making CRE Loans - Chief Economist Article

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com, www.naisavannah.com
912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

SCAD buys MLK Boulevard building | savannahnow.com

SCAD buys MLK Boulevard building | savannahnow.com

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com. www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Q3 2011 Savannah Economic Review & Outlook for Commercial Real Estate

Savannah based Armstrong Atlantic University’s Center for Regional Analysis released it’s 2011 3rd Quarter Economic review & outlook.

With 7 straight quarters of growth since the end of the recession, our area has fared well with slow but steady growth. Commercial Real Estate, especially industrial, has seen  a pick up of activity in the last half of 2011.  The port, tourism, industrial & manufacturing highlight this growth.  Steady growth is forecasted through the coming year with a pick up in economic activity in the 1st half of 2012. Read the entire report here:

Savannah Economic Update

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors, is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger at:  www.savannahcommercialrealestate.blogspot.com and www.ublog.naiglobal.com/naisavannah  www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Savannah to Get World Trade Center

Savannah economic developers are pursuing a World Trade Center designation they're calling a tool for job creation in coastal Georgia.

The Savannah Economic Development Authority board of directors voted unanimously Sept. 14 to apply to become one of more than 330 licensed centers in 98 countries. Atlanta is the only other World Trade Center city in Georgia, though there are more than 50 across the U.S.

The non-profit World Trade Centers Association, based in New York, aims to foster cross-border business and trade by linking metropolitan areas around the world. The organization's board is expected to put SEDA's application to a vote by mid-October, said Steve Weathers, SEDA's president and CEO.

SEDA began considering the designation after a meeting in May revealed holes in the area's international growth plan despite the recent creation of the Greater Savannah International Alliance, a volunteer advisory board tasked with charting the course...
See the full article below.....

Savannah to Get World Trade Center

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Savannah Commercial Tenants: Is now the time to buy?

Favorable borrowing rates, lower construction costs, add to that the significant drop in property values over the last 3 years, and there is a very strong case for business owners to consider owning their real estate.

SBA FINANCING

If ownership aligns with long term business plans and the tax implications are favorable, a stable business or a collateralized start-up can find favorable financing.   Conventional lenders are certainly out there lending money, but Small Business Administration (SBA) loans are coming back into favor for several reasons: 1. Conventional financing now requires more than a pulse to qualify.  2. The SBA has some aggressive programs with improved processes that have made them more user-friendly.  3. Lenders are specializing in SBA loans and know how to get through the process more efficiently. In some cases, they have pre-approval from the SBA to underwrite loans that saves time, so make sure you start this process with a SBA specialist.

The primary SBA loan programs applicable are 504 and 7(a), both of which have received recent tweaks in hopes of spurring growth out of the recession.   For as little as 10% down, you can purchase a building and roll in closing costs, all loan related fees, equipment costs, furniture, building improvements,  as well as business credit card debt and other existing lines of credit.  The loans can be used to buy a business or even refinancing an existing building or other debts.  Loan limits have been increased up to $5 Million and terms are usually fixed for 10 or 20 years, much longer than conventional loans.

CONSTRUCTION COSTS

With new construction at a standstill, contractors have had to trim down their profit margins significantly in order to win a job and keep their people working.  This can be also said for all the related industries - architects, engineers, etc.  Some materials costs may fluctuate, but overall now is an exceptional time to consider building new or making improvements to existing structure that will add value long after the current economic slowdown corrects.

PROPERTY VALUES

I hate having to tell my clients that want to sell this, but nationally values are down anywhere from 35 to 45 percent from their highs in 2007.  We are still bumping along the bottom, but in May we saw a 6.3% increase in the Moody’s/REAL Commercial Property Index (CPPI).  A plus, this was the first positive move in six months and the largest one-month increase since the index started.

One of the factors of the increase, distressed sales saw an increase of 4.8% and where 27.0% of repeat sales.   Property owners that have had tenants evaporate or bought at the height of the market are willing to, as well respected local developer told me, “forget about the cheese and just get out of the trap.”  There is just not enough demand to absorb the vacant space and will be this way for some time to come.

Given all these factors, even modestly positioned business owners have an incredible opportunity that we are likely not to see again for a very long time.

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for “BiS-Business In Savannah” weekly business publication and is an active blogger. www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate Sales

Tourism Grows in Savannah - 11.2 Million Visitors / $1.7 Billion Spent

Reprint from Savannahnow.com

Orginal story link | savannahnow.com

By G.G. Rigsby Copyright 2011 . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

A number of overnight visitors make last-minute decisions to come to Savannah, and one of their favorite activities is shopping.

“We have a bit of a hidden gem here in terms of our shopping and antiquing and the impact of that on tourism,” said Joe Marinelli, president of Visit Savannah.

Numbers released Thursday indicate the number of visitors and the amount of money they spent in the Savannah area grew slightly in 2010 to 11.4 million visitors spending $1.7 billion.

Read the 2010 Tourism Study Breakdown and the full 2010 Tourism Report released by Visit Savannah.

That compares with 11.2 million visitors spending $1.6 billion in 2009, the study by Longwoods International said.

Of the 11.4 million visitors to the area last year, 56 percent stayed overnight and 44 percent were day trippers.

Of the overnight visitors, 38 percent said they had no travel plans and
38 percent said they came to shop. Of day trippers, 33 percent said they came to shop.
Another top reason for coming to Savannah? Food. Thirty percent of the overnight visitors and 21 percent of day trippers said they came for fine dining.
“People talk about Savannah as a great culinary destination,” Marinelli said. “Maybe we should use that more.”
Most of the area’s overnight visitors, 80 percent, say they come for the history and cultural activities.
The study also bears out the emphasis that Visit Savannah has placed on social media and Internet marketing. Forty-five percent of the overnight visitors said they used social media for travel.
A positive trend is that visitors are coming to the area year-round.

Crowds que daily for a seat at Paula Deen's The Lady & Sons

“Summer is no longer a dead time in Savannah,” Marinelli said. “We have basically eliminated the shoulder seasons.”

The study says 23 percent of overnight visitors come from January through March, with 28 percent coming in the second quarter, 26 percent in the third quarter and 24 percent in the fourth quarter of the year.

The average length of stay has risen to 2.5 nights, up from two nights a few years ago, he said.

“That’s more people shopping, more tours taken, another breakfast you have,” he said.

Visit Savannah also has marketed more to African-Americans, creating a new black heritage brochure and buying ads on an African-American radio station in Atlanta.

The efforts seem to be paying off, with African-American overnight visitors making up 9 percent of the visitors in 2009 and 12 percent in 2010.

In the day tripper category, African-Americans grew from 15 percent in 2009 to 18 percent in 2010.

Overall, the average visitor to the city is about 45 years old, One-third of the visitors make more than $75,000, and 47 percent have college or graduate educations.

By the numbers:

2009/ 2010

Visitors 11.2 million / 11.4 million

Spending $1.6 billion /  $1.7 billion

Room tax revenue $12.9 million  / $14.4 million

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Savannah Commercial Real Estate activity picks up. Part 3

Part 3. : OUTLOOK
Though Savannah’s economy is projected to be a relatively flat in 2011, market activity and inquiries do hold promise for the future. Savannah Economic Development Authority’s new President and CEO, Steven Weathers, stated during a recent presentation that they have a healthy number of sizeable site searches considering our area.

Nationally, the primary coastal markets (New York, Boston, DC, San Francisco, San Diego, etc.) have seen the majority of improvements in commercial real estate. This has been caused by institutional buyers buying blue chip investment assets. Per a recent National Real Estate Investor survey, low interest rates and a surge in investor confidence should result in private investors becoming more active in secondary and tertiary markets like Savannah in 2011. Multi-family and hotel developments will garner the most attention nationally.

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com http://www.naisavannah.com/ 912-358-5600 Savannah Office Space, Savannah Retail Space, Savannah Industrial Space, Savannah Investment Real Estate

Savannah Commercial Real Estate Picks Up - Part 2

LAND LAGS


The most anemic sector, and one which is often seen as a sign of a healthy market, is speculative land sales. The only retail, office or industrial land sales with immediate development plans have had a specific user in tow. Most have been smaller, single tenant deals such as the new Parker’s at Skidaway Road and DeRenne Avenue.

With no demand to justify development, much less an ability to finance improvements, several parcels have been placed into foreclosure or have had their notes sold. Just a few years ago, these same tracts were thought to be good bets in the apparent path of growth. This has provided opportunities for land sales at greatly discounted prices, but investors know they have to endure long hold periods before any return can be expected. Multi-family land sales, including projects supported with Department of Community Affairs tax credits, have been active particularly in the Pooler area.

PART 3.... Outlook

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger:  http://www.naisavannah.com/ 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Savannah Commercial Real Estate Activity Picks Up

Over the last 6 months, though anecdotal, my fellow brokers, appraisers and other service providers have seen commercial real estate activity pick up in the Savannah area. While not booming by any means, there has been a recognizable improvement.


LEASING LEADS

The majority of actual deals being executed are leases, led by the industrial sector. Office and retail leasing has seen an uptick of smaller tenants and start ups, neither of which absorb much space. National retailers are starting to look again, but are only interested in prime locations like Abercorn or Pooler Parkway, not willing to take any risk.

The leading industrial real estate owner in our area, Duke Realty, recently signed a few distribution warehouse deals in the 100,000 square foot range. Other industrial developers also report an increase in tenant inquiries.

Buyers are beginning to look again. Sales however, continue to be soft in all product types. Some activity is driven by users who believe it’s time to begin planning for future expansion. Investors, believing the next 12 to 18 months are critical to capitalize on depressed values, are also kicking tires. With several years of industrial space to absorb, our firm has toured more national developers recently. Their target, properties that are underwater or have low occupancy with hopes of acquiring and repositioning them as the economy recovers.
Part 2. LAND LAGS... to follow...
-----------------------------

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

4/13 Economic Outlook Webinar sponsored by NAI Savannah | savannahnow.com

4/13 Economic Outlook Webinar sponsored by NAI Savannah savannahnow.com

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Loopnet Brings More Property Information to the Masses | Square Feet Commercial Real Estate Blog

A good blog on the use of LoopNet for commercial real estate marketing.

Loopnet Brings More Property Information to the Masses Square Feet Commercial Real Estate Blog



Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Savannah Commercial Real Estate: 2010 Review & 2011 Outlook

Time heals all wounds, but how much time is the big question. The bruises of the last few years are still there but, some signs of a turnaround are visible. Here is both a national & local look at 2010 and an outlook for 2011:
Office: National vacancy rates hit a 17 year high, but the 4th quarter was the first time in 3 years more space was leased than vacated. Locally, our office market continues to be soft and like the nation, vacancy rates will remain relatively flat. Limited office leasing produced some moves but few net-new users of any significance. GSA build-to-suits drove development, including Savannah’s first modern-day, Class-A building in the central business district. Slated to open in 2012, 70,000 SF will be constructed facing Ellis Square and house the U.S. Attorney’s office on four of its six floors.

RETAIL: US holiday sales were the best in 4 years. An increase in consumer buying power should lead to modest sales growth in 2011 with discount & grocery retailers benefiting the most. Oglethorpe Mall, nearly fully leased, reported 2010 store sales up slightly compared to a 3-4% decline in 2009. Broughton Street saw mixed results: some store sales were up over last year, but several closings still indicate there is work to be done to invigorate the corridor. Steady tourism improvements also helped increases in tax receipts and hotel occupancies.



photo courtesy of GPA



Industrial: Vacancy rates peaked nationally around 14.1% & should finish 2011 around 13.1%. That’s far better than the near 20% vacancy rate in the Savannah area. Most large deals, including Coastal Logistics Group’s build-to-suit 320,000SF building and JLA Home’s 689,000SF warehouse purchase, were in some way related to the port. No other speculative big-box development is expected with 12-18 months or more of supply. Several smaller user-warehouses traded hands with an abundance of smaller 1500-5000sf lease spaces sitting vacant.

Multi-Family: Due to a slow economy and financing challenges in the single family housing market, the sector that showed real progress is 2010 was multi-family. US vacancy fell to a 2 year low of 6.6 % and rents rose .5%. The sector does lead in foreclosures due to most loans being underwritten at the height of the market. Locally, occupancy was steady if not grew with limited development activity in the Pooler area. Our multi-family developer clients are pursuing projects so, expect more development next year.

Investment: The target for most investment, top-tier markets have seen average asking prices increase. As of 3rd quarter 2010, Moody’s reported apartments led with a 16% increase from the year prior. Office increased 4.4% while Retail and Industrial fell 12% & 4.4% respectively. Look for continued oversees investment as the US is by far the number one choice of foreign real estate investors. Don’t expect that demand to translate into activity in our market except for very few institutional grade properties.

What to expect: Until we start seeing repeated months of 300,000 new jobs a month nationally & strong improvements in the consumer confidence index, the economy has long way to get back to “normal.” Savannah’s infrastructure and relatively low cost of living is ready and able to support all those retirees that want to move here but can’t sell their homes. The commercial market should make some modest strides in 2011 thanks to the port and manufacturing announcements, but it will be slow and steady recovery into 2012.

NAI Savannah Sponsors Economic Webinar:

On January 19th, , NAI Global’s Chief Economist and Wharton School of Business professor, Dr. Peter Linneman, gave his quarterly Global Economic Outlook related to commercial real estate. To get a link to replay the webinar, send an email to: outlook@naisavannah.com.

Rex Benton is a Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for “BiS-Business In Savannah” weekly business publication and is an active CRE blogger. http://www.naisavannah.com/  912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate

Savannah first Modern Day Class A Office

There's a couple of reasons why new Class-A office space is big news.

artist rendering images from Savannahnow.com

1. Savannah's Office market mirrored Atlanta & the rest of the country. Slow. Downtown Savannah's CBD is traditionally home to lawyers, banks & financial firms with most users being in the 2500-5000sf range. Limited office leasing produced some moves, but no net-new users of any significance moved into Savannah's office market.

2. Because of its historic architecture, most office buildings in the CBD are outdated & not as efficient as newer office space outside the CBD. Combine that with limited parking, & you can see why many tenants have left downtown heading to Chatham Parkway & Southside Savannah.

artist rendering of new Class-A office looking West at Ellis Square

Slated to open in 2012, a GSA build-to-suit requirement has driven the development of Savannah's first modern 70,000 SF Class-A office building housing the U.S. Attorney's office on four of its six floors.  The attraction was the excellent location in the heart of the historic district, combined with ability to have direct access parking below the building via the new 1100 space underground garage at Ellis Square.

Holder Properties is the developer on the project. The ground floor will be leased as retail and the second floor will be leased for office space. Lease rates will reflect the Class-A finishes so, it should be interesting how it competes with other office space in the area that ranges from $18-22/SF.

Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate