TradeMark Properties

New Listing - 109 Conner Drive - Chapel Hill NC 27514

2012-01-25T12:32:00.000-05:00

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

2012-01-24T13:48:00.000-05:00

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.

2012-01-24T13:40:00.000-05:00

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

2012-01-24T13:37:00.000-05:00

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

2012-01-10T10:28:00.000-05:00

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?

2012-01-10T10:10:00.000-05:00

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

Big Banks are getting into the residential rental business?

2011-12-21T13:06:00.000-05:00

It appears that big banks are getting into the residential rental business… and who can blame them? Since early 2009, TradeMark Residential inventory has been maxed over 97% occupied at any given time. We know rental rates are steadily climbing and see rental properties snatched up within an average of 20 days on the market. Banks are catching on and some are beginning to rent back directly to the foreclosed borrower. A healthy rental market will in time be a direct contributor to a repaired housing market, and to Americans confidence and net worth.

Please see full article below.

http://www.housingwire.com/2011/12/09/bofa-developing-foreclosure-rental-programs-to-deal-with-distressed-properties?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29

2011-11-16T09:48:00.000-05:00

We all know the name Warren Buffett. He is the prolific investor who built an empire taking risks on companies through purchasing its stock, improving companies’ bottom line, and selling at record profits.

To date, he has largely invested in product (i.e. Coc-Cola) and services (i.e. Geico, Prudential) companies. He now has disclosed that his company has purchased nearly 10.7 billion, or 64 million shares, of the tech guru IBM. His name is often brought up in our industry as he invests a great deal in both real estate and those banks used to leverage mortgages. Purchasing a tech stock deviates from his modus operandi and many are wondering what he may know that we don’t…

Most likely, a good sign for stability in the market, beginning with our fundamental barometer: housing. For related information please visit…

http://tech.fortune.cnn.com/2011/11/14/warren-buffett-ibm/?iid=HP_LN

Note from TradeMark Properties CEO - Billie Redmond

2011-11-11T14:01:00.001-05:00

This is a special day to remember and honor those who have served our country – on native and foreign soils – to win and preserve our freedom and way of life. Regardless of your thoughts about conflicts and wars, the fact that men and women will offer their lives in order to keep us and others free is testimony to the very foundation of United States of America. Please remember today to find a moment of thankfulness for our veterans and more importantly if you know a veteran or the family of a veteran, take the time and opportunity to tell them thank you directly and intentionally!

New Listing

2011-11-10T12:27:00.000-05:00

Great East Raleigh location. Easily accessible from all points of the Triangle. 12,000 SF, single-story office building ideal for owner occupant. Easily reconfigurable. Room available for expansion on site. Selling price - contact Drew Eller 919-573-1772 or Jim Harris 919-227-5513

LA Times reports that the US economy grew in the 3rd QTR

2011-11-08T10:35:00.000-05:00

LA Times reports that the US economy grew in the 3^rd QTR, behind consumer spending, by 2.5%. Spending increased nearly three and half times the rate of that in the 2^nd QTR. While the pace of growth is too slow to significantly reduce the current high unemployment, it is welcomed news for retailers. One big gainer was the automobile industry and saw a big bump in sales. And with the holidays fast approaching increased spending is a highly popular word.

What are your thoughts on this year’s holiday spending? How will it compare to last year’s?

For the full article, please visit: http://latimesblogs.latimes.com/money_co/2011/10/economy-growth-third-quarter.html

Lease Recasting: How Businesses Can Quickly Reduce Overhead Expenses

2011-11-03T11:31:00.002-04:00

Over the last two years, the Triangle area commercial real estate lease space market has changed dramatically. During this period, vacancies have soared and rates have dropped. Another phenomenon, lease recasting - the renegotiation of rate and terms prior to contract expiration - has become a prevalent occurrence that can substantially reduce a tenant's overhead expense."Many businesses are struggling with the "new normal". Renegotiating their space lease is a great way to realize cost savings literally overnight," says Brian Farmer, Advisory Services President with Coldwell Banker Commercial TradeMark Properties in Raleigh.
Surprisingly, many business owners and managers aren't aware this option is available to them and when briefed on it, think it's a "too good to be true" trap. So, let's explore the basic facts of recasting commercial real estate leases.
Q) How does recasting work; what are the steps?
A) A commercial real estate advisor reviews your current lease contract for key terms, conditions and costs. They conduct a market survey for comparable lease space and compare the findings with the details of the current contract to determine if lease recasting could produce a meaningful cost savings. If so, the advisor negotiates with your landlord for better terms in exchange for a new contract with an extended timeframe.
Q) When is it appropriate to consider recasting a commercial real estate lease?
A) Tenants shouldn't initiate the process prior to the third year of a five year contract, the fourth or fifth year of a seven year contract or later than 18 to 24 months before contract expiration.
Q) Is lease recasting legal and ethical?
A) Yes. It's an accepted practice in the commercial real estate universe that more frequently occurs when a lease space market has higher than normal vacancy, which is currently the case in the Triangle area. Experienced tenants are intimately familiar with the process and deploy it at-will if the opportunity arises.
Q) What are the key considerations of recasting a lease?
A) The location and space should meet your needs for the foreseeable future. Area amenities should be sufficient for employees and clients, if applicable. Plans to close existing, or open new locations, must be considered. An experienced commercial real estate advisor will be invaluable in identifying and clarifying these and other potential considerations based on your unique circumstances.
Q) What are the major benefits realized as a result of the recasting process?
A) Real estate is one of the largest overhead expenses, so the obvious benefit is the ability to lower your lease costs immediately. Another equally important advantage is ensuring the square footage you're leasing is being utilized as efficiently as possible. You might also be able to secure favorable terms to allow future expansion at the current location, or relocation to another property owned by the same landlord.
Q) Why would landlords agree to a lease recasting; what are the advantages they realize?
A) In the Triangle market, flex-, warehouse and office space vacancies are hovering near 20%. If a landlord can secure a new lease contract prior to the expiration of the current one, the possibility of a tenant relocating is precluded, the property's cash-flow is maintained and a potential lender cash-call is avoided.
Q) Don't landlords incur costs associated with recasting that they otherwise wouldn't?
A) No. If a landlord loses a tenant, they will likely be subjected to greater costs associated with leasing the space anew.
Q) Why shouldn't a business attempt to recast their lease without the assistance of a commercial real estate advisor?
A) A seasoned advisor's insight, familiarity with the local market and negotiating skill are an advantage tenants won't have working on their own. Landlords know they have to negotiate in good faith with an advisor because the current market survey they've prepared will allow the tenant to easily begin searching for a new location. And, most landlords actually prefer working with commercial real estate professionals because they share an understanding of the business which results in the process flowing more smoothly.
Q) What else is important to know about lease recasting?
A) The recasting process requires an insightful objectivity that many business owners simply don't possess. An experienced advisor will facilitate a professional and cordial tone throughout the negotiations, a key element for achieving a satisfactory outcome. Professional advisors are involved in the process from start to finish allowing tenants to focus on their business. Should the need arise for complimentary advisory services, established firms likely can suggest several service providers for the tenant to choose from.

Five Reasons Companies Fail at Business Model Innovation - Re-post

2011-11-03T11:29:00.000-04:00

Recent article from Harvard Business Review’s Saul Kaplan, ‘Five Reasons Companies Fail at Business Model Innovation’. Below is our summary and take on the article…

1- CEO & Senior Leadership are resistant to changes. They tend to see current system as positive and looking for enhanced effort from employees to improve system solely, rather than improve the system.

2- Product vs Service. Great companies are blending the two for best customer experience. When you become too invested in one versus the other, you can lose your competitive edge.

3- Looking through same lens. If an opportunity arises that could harm current business, those who deny the new business strictly because it would cost the old business, will fail at business model innovation.

4- Investment is too costly. Current financial metrics will never reward future business innovations on a Return on Investment model. But, because new business innovation is likely to have different economics and thus generate different ROI models, one must look at financial outcome through correct lens.

5- Going against the grain is not popular. If creative folks within an organization challenge the current system, and those who are tasked to grow and sustain business are allowed to cut these employees off, business model innovation will fail. Doing things the same way, will lead to the same results.

Basically, the five words that kill businesses are “We’ve never done that before”.

For full article please visit: (http://blogs.hbr.org/cs/2011/10/five_reasons_companies_fail_at.html)

Where we found the Silverlining in foreclosures

2011-11-03T11:07:00.000-04:00

Special asset solutions (SAS) a division of Coldwell Banker Commercial TradeMark Properties, expanded its REO assignment portfolio throughout the southeast US in 2010. Providing services in four areas: valuation, inspections/property management, financial services, and asset disposition also saw a shift from residential /builder product single family homes and lots to a larger commercial portfolio including every asset type. Serving 7 banks throughout the region, over 200 asset transactions were closed for over $140 Million in value, and a realization rate of over 85% was achieved. Geographically the transactions covered Florida, Georgia, Alabama, Texas, Kentucky, Tennessee, South Carolina, North Carolina, Virginia and West Virginia. Utilizing an extensive network of best-in-class brokers each asset was fully evaluated for assignment to local professionals. Trademark also directly sold the larger commercial assets, through direct investor marketing or bulk sale approaches.