New Listing - 109 Conner Drive - Chapel Hill NC 27514

109 Connor Drive Suite 1101 Chapel Hill NC 27514

Located in quiet office park setting across from University Mall in Chapel Hill. Has easy access to I-40 and downtown Chapel Hill.

Highlights:

Parking lot directory
Signage available
Great visibility from Connor Drive

An approximately 12,947 SF office building with 2,423 SF of existing medical space available on the first floor with prominent entry.
Space includes waiting/reception area, five exam rooms with plumbing, lab, break room, nurses station, three offices and two rooms.

Leasing Rate:
$16.50 per SF/ Full Service

For more information, contact:

Drew Eller
919.573.1772
Deller@cbctmp.com

Limited New Supply Pushed Occupancy Rate to Its Highest in the Triangle

Strong demand and limited new supply have pushed the average occupancy rate for apartments in the Triangle to its highest level in over ten years. Not since 1999 has the average occupancy rate in the Triangle been higher than the current 93.3%. Construction starts have been down over the previous two year period, causing the rate of new supply to dwindle. However, in the last six months construction started on just over 1,000 units throughout the metro area. The total number of units under construction is now at almost 2,000 and there are another 7,000 units proposed.

Rental rates are also on the rise, with same-store rents experiencing strong gains over the past eighteen months. The average rental rate for an apartment in the Triangle is now $824 per month. New apartments in lease-up continue to command the highest rents in the market with an average rate close to $1,200 per month.

Trademark Properties and Mike Wright are proud to announce they have been retained as exclusive listing agent for Carters Mill Apartments in Raleigh. This is an exciting opportunity for a hands on investor to acquire 132 apartments in the sought after Triangle market.

For more information click on the below link:

https://my.rcm1.com/handler/brochure.aspx?pv=M7blOWb9Lpk1JEmW72d0sg

By: Michael Wright

Senior Real Estate Investment Advisor

919.217.3005 Direct

Selling foreclosures to Investors as Rentals.

Federal regulators and the Obama administration are getting ready to roll out a program that would sell foreclosures to investors as rentals. The first transactions could take place in early 2012.

http://money.cnn.com/2012/01/09/news/economy/foreclosures_rental/index.htm

Office Tenants Still Call the Shots

Although commercial vacancy is trending downward and improving little by little as each new quarter goes by, and very little if any new office product is under construction (thank goodness!), tenants still call the shots in lease negotiations these days. Landlords will keep the rental rate as high as possible to keep the value of their office product as high as possible. But to offset these higher rates, abundant free rent (as high as one year on a five year lease inside the term!!) and other concessions are being offered to tenants to attract them. Tenant Improvement money (TI) is abundant as well as other concessions such as lower cost parking (in places that it costs to park) and lower increases or “bumps “ in the lease rate from year to year.

Landlords are also fighting against signing longer leases in the hope that things will get better and so tenants need to press their advantage while they have it by “blending and extending” existing leases or signing as long a lease as they can handle so that this biggest piece (after employee compensation) of the cost of doing business is controlled for the longest time period possible.

These things tend to be cyclical so don’t be surprised if things start heading in the other direction as the economy improves. For now though, tenant/buyer reps such as myself will enjoy the ride as we help our tenants/buyers to prosper!!

By: Jim Baldwin

Commercial Real Estate Advisor

919.227.5518 direct

jbaldwin@cbctmp.com

Healthcare real estate among strongest sector for investors

Many experts have long regarded healthcare a recession resistant industry, an idea that the latest employment statistics seem to favor.

Healthcare has been one of the hottest sectors for hiring in the past few years with 1 in 5 new jobs being healthcare related. Since 2008, the healthcare industry has added almost 1,000,000 jobs in total. According to the US Department of Labor, employment in the industry is predicted to increase by 22 percent by 2016, double the predicted rate of growth of non-healthcare professions.

Strength in the healthcare industry translates into a stable and highly attractive sector for real estate investors. Demand for healthcare real estate is up and vacancy rates continue to decline as excess space from pre-recession overbuilding is absorbed into the market.

Healthcare assets are stable investments because physicians tend to be heavily invested in their office locations and thus stay in place for long periods of time. Combine this with the increasing demand for health services and the results are real estate assets with long-term leases and relatively little income variability due to vacancy loss.

Factors contributing to such high growth in the healthcare industry and subsequently the healthcare real estate sector include the increase in the overall population and the trend for hospitals and larger groups to grow through consolidation and acquisition of smaller practices and competitors.

The continuing rise in the overall population is a key factor in the continued growth of the healthcare industry. In addition, the portion of the population aged 65 or older continues to grow as a result of aging baby boomers, a group that averages twice the number of yearly office visits as compared to the general population. This demographic is predicted to grow by 36% over the next 10 years.

Hospitals and larger medical practices have continued to embrace the theory that growth through consolidation and acquisitions will help them provide services at lower costs and increase their market share. This practice results in a lot of excess real estate that healthcare organizations seek to shed through monetization or the sale and leaseback of their assets.

Monetization is an increasingly popular strategy among healthcare institutions. The ownership of real estate is generally not considered to be a core part of a practice’s business. Institutions are beginning to understand that facility ownership and management activities tie up resources that could otherwise be used to grow their core business and generate healthier returns. Many providers are seizing the opportunity to shed real estate assets through sale/leaseback transactions and re-deploy their capital to healthcare operations.

By:

Drew Eller
Investment Advisor at Coldwell Banker Commercial TradeMark Properties

Bernanke calls for nationwide REO rental program, What are your thoughts?

We have seen this at TradeMark Residential for the past 18 months.  Banks have through their own initiative, rented their foreclosed properties to stabilize the asset.  The bank may turn around and sell the property but typically keeps the house with renters and income in place.
Now, Federal Reserve Chairman Ben Bernake is calling for a nationwide REO (real estate owned/ foreclosed property) rental program.  Bernake cites that stabilized property will boost the economic recovery by strengthening the housing sector.  Many foreclosed properties have taken 3-4 years to sell during which time they sit vacant and mostly unattended. What are your thoughts???

See article; http://www.housingwire.com/2012/01/04/bernanke-calls-for-nationwide-reo-rental-program