Multifamily
Currently, multifamily and the assisted-living side of the market are strong. A tremendous amount of multifamily projects have been sold, thus, showing a significant development opportunity in this sector. Young people are also playing an influential role in the success of multifamily. As a result of the economy, significant changes have developed in young people’s attitudes towards owning homes. They don’t see buying a home as an investment, and are looking at multifamily residential to provide more flexibility. This is a big change for our country, and it bodes well for the future of the multifamily market.
Commercial Activity in the Office
We are starting to see an increase in commercial activity in the office, starting about 8 or 10 month ago. Conversely, we don’t predict a change from a tenants’ market to a landlords market anytime soon. However, when it comes, that will bring a very big change to the office side of the market.
Commercial Activity in the Industrial Side
The industrial sector is steady. There has been little reduction in rental rates in this market. However, there has been reduction in the number of available tenants. We’ve seen a reduction in interest in this sector, but not a reduction in rates. People are staying where they are as a result of the recession. However, the industrial sector will stay stable and growing as a result of the rent that landlords charge.
Challenges of Retail
Retail still remains a challenge, but we are seeing spurts of activity. The consumer market is still struggling, as result consumers are cutting back on their discretionary spending. There is still a strong amount of infill activity, and a substantial amount of retail projects on the book and planned before the recession. You’ll see some of these projects get completed on a piece-meal basis.
Latest Block Real Estate News
Block Real Estate Services recently was involved in several big commercial deals. We acted as advisor for the Polsinelli Shughart law firm while it chose a new 222,000 square foot building headquarters location in the Kansas City Country Club Plaza. We also worked on the Teva Pharmaceuticals project in Overland Park, KS. The company is building a 154,000 square foot five story building with occupancy expected in 2013.
Contributing Author:
Kenneth G. Block, SIOR, CCIM
Managing Principal
Block Real Estate Services, LLC
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