Fall 2011 Advantage Newsletter

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CBC Lubbock Advantage Newsletter

Transcript of Fall 2011 Advantage Newsletter

  • Lubbock Industrial Market Overview . . . 2011

    Contact: Jef Conn, CCIM, MBA Industrial/Of ce/Investment Specialist / 806.784.3216 direct E-mail at JConn@CBCWorldWide.com

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    Coldwell Banker Commercialrepresented the Seller and the Buyer in the disposition and ac-quisition of a 7,487 SF of ce/warehouse.

    Coldwell Banker Commercialrepresented the Landlord and Tenant in leasing a 1,573 SF space in a freestanding retail building on 50th Street to The Chocolate Mousse Pie Bar.

    Coldwell Banker Commercialrepresented the Buyer in the ac-quisition of a 3,400 SF used car lot facility in southwest Lub-bock.

    Lubbocks Industrial market is still holding strong with an overall vacancy rate of 3.3% rate compared to the national average of 9.8%, according to the CoStar Research Group. This is great news, given that the amount of demand of cotton storage is less than in previous years.

    The asking rental rate for all Lubbock Industrial properties increased 6.3% and cur-rently stands at $3.03/SF. Flex properties (of ce/warehouse) rental rate currently stands at $6.35/SF.

    Despite the drought that has caused some cotton gin companies to not expand into new space, smaller companies are continuing to thrive in Lubbock and ll up space that would have otherwise not been available. This is due to the 2.8% increase in employment over the past 5 years.

    Overall there is currently 1,073,923 SF available for sale or lease in Lubbock rang-ing in size from 450 SF to 100,000 SF. Below is a chart of 2010-2011 vacancy numbers.

    Period Existing Inventory Vacancy Net Deliveries Quoted # Total Direct Total Vac Absorption # Total Rental Buildings RBA SF SF % Bldgs RBA Rates 2011 2q 2031 32,947,277 1,015,198 1,073,923 3.3% (52,609) 0 0 $3.03 2011 1q 2031 32,947,277 962,589 1,021,314 3.1% (172,963) 0 0 $2.8 2010 4q 2031 32,947,277 788,026 848,351 2.6% 141,602 0 0 $2.54 2010 3q 2031 32,947,277 1,189,380 989,953 3.3% 259,752 0 0 $2.56 2010 2q 2031 32,947,277 1,277,016 1,249,705 3.8% 86,036 0 0 $2.60 2010 1q 2031 32,947,277 1,158,585 1,335,741 4.1% (111,434) 1 6,997 $2.58

    Many companies in the Lubbock area have begun to look for creative ways to in-crease their bottom line so they can be able to tap into the increase in employment and expand their businesses.

    One way they are doing this is by utilizing the sale-lease back approach. This is where a company who owns the real estate their business resides in sells the real estate to an investor and leases it back to them.

    Typically this lease is done for 10-20 years. This approach allows business owners to pull their capital locked in by real estate and put it to work for expanding their business.

    Our Coldwell Banker Commercial Industrial Team has the expertise to help you evaluate whether or not a Sale-Lease back is a viable option for you and your company.

    Give us a call today so that we can sit down with you, discuss your objectives and gure out a plan moving forward.

  • Coldwell Banker Commercialrepresented the Landlord and Tenant in leasing 2,521 SF of of ce space in Sonoma Plaza.

    Coldwell Banker Commercialrepresented the Landlord in leasing 3,000 SF of of ce/ ex space in southwest Lubbock.

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    Coldwell Banker Commercialrepresented the Landlord and Tenant in leasing 6,000 SF of re-tail space in Mission Plaza.

    Coldwell Banker Commercial (CBC) represented the Landlord is the sale of a multi-tenant of ce property located at 5807 63rd in Lubbock, TX

    Situation: The seller had a 100% occupied of ce building which had three tenants and decided to sell the building to move cash from this investment to future de-velopment/investments. Coldwell Banker Commercial exclusively repre-sented the seller in the local and national marketing of the property.

    The Property: 5807 63rd is a 6,750 SF with three tenants on .74 acres in Southwest Lub-bock just off Frankford Avenue & 63rd Street.

    Process: Coldwell Banker Commercial utilized an aggressive marketing approach to contact all local buyers, Lubbock brokers, as well as reached out to a nation-al audience via the Coldwell Banker Commercial platform and the CCIM network. Leaving no stone unturned, CBC was able to locate a broker whose client had inherited a large sum of money looking for a passive investment.

    Results: Coldwell Banker Commercial worked with the seller and the buyers

    agent to walk the transaction through from the initial offer to closing. All showings, tours, inspections were set up through our customized

    closing process which makes sure all properties move from contract to closing as quickly and smoothly as possible.

    The seller was able to quickly sell the property at a price agreeable to both buyer and seller.

    The buyer was able to get a passive investment that will help grow their portfolio.

    Thinking about investing in passive real estate investments? The Of ce Team at Coldwell Banker Commercial has active property list-ings and access to all available properties that could bene t you and your portfolio. These single and multi-tenant investments provide buyers with great opportunities to grow their portfolios with properties ranging in price from $260,000 to $1mm+.

    Of ce Building Sale - Case Study

    Contact: Jef Conn, CCIM, MBA Industrial/Of ce/Investment Specialist / 806.784.3216 direct E-mail at JConn@CBCWorldWide.com

  • Fasten your seat belts, please keep your hands and feet inside the moving car at all times. Be prepared for a bumpy ride. Over the past year, this could describe the roller-coaster ride of investing in the stock market. With sudden drops in the Dow Jones industrial average ranging 250-500 points in a single day becoming com-monplace, investors are ocking to a less bumpy, more secure place to invest their money. That place is commercial real estate.

    One look at the above chart of the Dow Jones changes shows a drastic drop in the second half of 2011.

    Individual investors invested $2.1 billion in commercial real estate in 2010, up from $579 million, according to Real Capital Analytics Inc. This trend is expected to in-crease to the $3.5+ billion range in 2011. The Reason: Investors Want Security.

    Commercial Real Estate investments such as single tenant net-leased properties, multi-tenant of ce buildings and shopping centers provide an investor with a physi-cal asset they can use to build their portfolio. Single Tenant Net-Leased Investments has been the most popular investment among investors as they typically provide investors with a 10-20 year lease while the tenant pays all the operating expenses. These investments are the de nition of passive investments as Landlords can rely on the lease in place to pay off any debt on the building. According to Entrepreneur.com, commercial property helps diversify risk as investors can rely on leases in place as opposed to how the market feels about a company at a given time. The stability of longer term leases helps you prepare for a pre-determined return over time. The stock market does not allow for this. According to the CCIM Institute, com-mercial real estate provides a more stable environment that is less volatile.

    Tired of riding the volatile ride of the stock market? Invest in commercial real estate. Coldwell Banker Commercial has the understanding and know-how to locate you a single or multi-tenant investment that produces a range of 7% - 12% per year with less stress than the stock market. Let us help explain the positive effect that com-mercial real estate can have on your portfolio. We are a local company with a nation-al reach that knows the ins and outs of investing. Give us a call today to discuss

    The Investor Flight From Stock Marketto Commercial Real Estate Investments

    Coldwell Banker Commercialrepresented the Seller in the disposition of a 2,801 SF of ce building.

    Coldwell Banker Commercialrepresented the Landlord in leasing 8,668 SF of retail space in Salem Village Annex.

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    Coldwell Banker Commercialrepresented the Buyer in the ac-quisition of a NNN Investment property in Lubbock, TX.

    Contact: Jef Conn, CCIM, MBA Industrial/Of ce/Investment Specialist / 806.784.3216 direct E-mail at JConn@CBCWorldWide.com

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  • Sonoma Plaza

    6006 - 82ND STREET

    Used Car Facility Mission Plaza Center

    5721 FRANKFORD AVENUE 3501 - 50TH STREET

    Represented the Landlord and the Tenant in leasing 2,521 SF of professional of ce space in Somona Plaza.

    Represented the Seller and Buyer in the disposition and acquisition of a 3,400 SF used car facility.

    Represented the Landlord and the Tenant in leasing 6,000 SF of reatil space in Mission Plaza Center.

    3515 - 50TH STREET

    Coldwell Banker Commercial rep-resented the Seller in the disposition of this NNN Investment property.

    The property is the Wild Burger Grill restaurant in Lubbock, TX.

    Of ce / Warehouse

    5813 E. 4TH STREET