Top Ten US Markets for Apartment Development – Columbus # 1

According to Zillow, the real estate database company, this “college town” is booming with regards to new apartment construction and fast lease up with rapidly rising rents. Some of  us would consider Columbus a bit more than just a college town, given that there’s over 2 million folks in the metro.   True though, that around 110,000 are college students.

It’s not just OSU undergrads that are driving this market. The outer ring suburbs of Dublin, Powell, Worthington, Westerville and New Albany are also doing well.  The newest most expensive class-A units are doing the best with the downtown, which is almost all new, with a 96% occupancy rate.

The unfortunate factor for the Columbus commercial real estate agents is that there’s virtually nothing for sale.   The acquisition costs are so low and rents so high that no one sells.  The good is that the residential demand also bring more NNN triple net lease retail and restaurant demand.  That just happens to be what I do.  Net lease retail and restaurant leasing, and NNN triple net retail single tenant investment property for sale, mostly for 1031 exchange uplegs.

As always, if you have any questions, call your nnn, Columbus triple net retail specialist, Scott Harris, 614-905-6614.

http://www.zillow.com/blog/columbus-hottest-rental-market-195204/

Los Angeles Convention Center to Get Redesign of the Redesign.

Los Angeles retail restaurant for leaseThe current Los Angeles Convention Center. although not that old compared to many in the country, is badly out of date. The convention business is big money and very competitive.

Plans to update the current convention center never seemed to work out in the past. The latest was an plan for LA Live developer, AEG, to do a massive remodel and expansion as part of the NFL stadium that was to built nearby.  When that failed, Los Angeles decided to hold a design competition to do it themselves.  They selected a design team headed by HMC Architects and Populous.  LA also approved a $470 Million bond funding plan.

Now they’re considering shelving that plan and going much bigger through a public / private partnership. The City of Los Angeles will hand over the project to a well qualified private developer to finish it off.

This will breed more Los Angeles downtown net lease retail and restaurant development. That’s where we Los Angeles commercial real estate agents and brokers come in.  It also means even more hotels and high rise multi unit development as if LA doesn’t have plenty of that in the pipeline already.

Los Angeles has turned into one great development after another. This is exciting stuff.

Downtown Los Angeles South Park Car Wash to be 60 Story Mixed Use Tower

Los Angeles commercial real estate agentsWe’ve been hearing rumors for a very long time, and now that plans have been filed with the City of Los Angeles, we’re seeing the first illustrations of the planned 60 story mixed use monster. It’s to be built on the old car wash site across from LA Live and will include hotel, residential condos, office, retail and restaurants.

Although the building looks so thin that a good wind could blow it over, it will house 374 residential units, 373 hotel rooms, 33,000 square feet of office space and more than 65,000 square feet of downtown Los Angeles retail and restaurant space. Once again, making Los Angeles commercial real estate agents very happy to have new inventory available.

Car wash owner, Robert Bush, sold for $25 million in 2014 to developer Ben Neman who was the buyer and is the developer. Car wash owner paid $515,000 for the site back in the 80s.

Plans were just filed with the City of Los Angeles by architectural firm Nardi Associates.  Illustrations show how this is going to look.  Nardi describes it as a giant urban tree with its diagonal grid like design complete with open air atrium, LED signs and live plantings.

Preliminary lease up will begin as soon as they get final approval so if you’re interested in the retail or restaurant space, feel free to give me a call, Scott Harris Realtor, 310-473-4789.

http://urbanize.la/post/first-look-60-story-dtla-car-wash-killer

Massive Mixed Use Project Coming for Olympic and Bundy in West Los Angeles.

new west los angeles triple net retail restaurant space for leaseThe five acre Martin Cadillac GMC dealer that’s been on the corner of Olympic and Bundy for 40 years will soon be replaced by a big new seven story 516 residential unit, apartment and or condo complex, and 10 story office with 81,000 square feet of net lease retail restaurant space plus three levels of underground parking for 1,876 parking spaces.

Los Angeles and Santa Monica commercial real estate agents will be happy to have some new net leased retail and restaurant space for lease.

The south side of the property along Olympic will see a new ten story office tower with 192,000 square feet of office space and 26,000 square feet of retail at street level.

This will be one block from the Expo Line extension in West Los Angeles.

Current owner, Dana Martin and family, will be the developer.

The new Cadillac GMC dealer will occupy the southeast corner of the ten story office tower.   I bought five cars from them over the years so I’m happy to see that they’re continuing in the new building.

If you have interest, I’ll be happy to help. Call me, Scott Harris Realtor, 310-473-4789.

Columbus Commercial Construction Update

The Columbus commercial construction update, brought to you by Walker Evans at Columbus underground, highlights both existing and new projects in and around downtown Columbus.

Columbus commercial real estate agents / commercial Realtors will be very happy to see this new product coming online. Although it means new commercial construction, but in many instances, not new as in additional retail space. We need additional retail and restaurant space for Short North, OSU area and Clintonville.

Anyway, back to the update. Notice that the Nationwide Insurance building is well on its way for completion and occupancy for March on 2016.

The Edwards Communities develop between eighth and ninth south of campus is coming along nicely helped by the very mild weather we’ve had so far this winter.

What’s nice with this one is that there’s going to be 23,000 square feet of new, additional, net leased retail space with two or three restaurants.

Below are the links to Columbus Underground’s commercial construction update

http://www.columbusunderground.com/construction-update-south-campus-gateway-expansion

http://www.columbusunderground.com/construction-roundup-november-2015-part-1

http://www.columbusunderground.com/construction-roundup-november-2015-part-2

If you’re looking for Columbus retail or restaurant space, please feel free to contact me, Scott Harris at 614-905-6614.

 

Los Angeles Apartment Occupancy Rates Driving Rent Increases

Los Angeles commercial real estate agentNot that it isn’t obvious enough already, but take a look at the article that I found today in Curb LA regarding Los Angeles metro apartment rent increases versus vacancy rates.

This is a big boom to Los Angeles commercial real estate agents and landlords and not so good for tenants.

Citywide, rents are up an average of 7.8% over last year to an average of $1,873 per month.  Northeast San Fernando Valley prices are up 15.1%.   Los Angeles single family homes prices have increased 5.2% and incomes 2.9%.

Take a look at vacancy rates.  That explains everything.  When you see vacancy rates down to the 1% and 2% range, the sky’s the limit on rent increases.

In spite of all the new multiunit residential construction, and there’s a bunch, we need more and denser.   Los Angeles has over 15,000 units under construction right now with half of all new supply is coming online downtown.  Notice that downtown has the second highest vacancy rates and one of the slower rates of rent growth so there’s obviously a connection there.  We’re going to need to out build the population increases to keep a lid on rents.

Great thing is that all of the new mixed use high rises that are going downtown, and along the Wilshire corridor, will include street level net leased retail and that’s where I come in.  Los Angeles and Santa Monica commercial realtors are happy folks right now.

http://la.curbed.com/archives/2015/11/los_angeles_rents_2015.php

As always, if anyone is looking for triple net retail or restaurant space to buy or lease, feel free to contact me, Scott Harris at 310-473-4789.

Columbus Multiunit Residential Market Ranked 10th Nationally

columbus commercial realtorA  report by All Property Management http://www.allpropertymanagement.com/ , who is the largest group of property management companies in the United States,  ranked Columbus and Central Ohio as the best market for landlords in the Midwest, and the 10th best in the country.

Columbus commercial real estate agents, me included, couldn’t be happier at the new level of activity and the net leased retail opportunities we’ll see in the future.  The development in downtown is all mixed use so that means ground floor triple net retail.

Columbus area developers have added thousands of units over the last few years, which is driving much additional mixed use, triple net retail and restaurant space for lease in the Columbus area.  We sure need it.

In spite of the new apartment supply coming online,  there’s still a drop in Columbus vacancy rates into the range of 5.5%.  Plus the Columbus multiunit market has seen a 25% rise in rents over the last four years and a 9.9% rise in the last year.   It can’t get much better than this.

From personal experience, however, my advice to an investor, especially an out of town buyer would be to stick to class A and good class B units and complexes.  Tenants here in class C buildings can be a major nightmare. If you buy class C you need to be local.

If you’re interested in becoming an owner, contact your favorite Columbus commercial Realtor or commercial real estate agent.  I’m happy to help.  Contact me, Scott Harris, Realtor at 614-905-6614

Big Retail and Apartment Development for Hollywood’s Donut Time District

Developer, AvalonBay, spent $100 million to buy six acres of land around Santa Monica and Las Palmas for a huge 695 unit apartment complex complete with another 25,000 square feet of ground floor net leased retail space according to Los Angeles Business Journal.

Los Angeles commercial real estate agents will be pleased to have some new triple net retail and restaurant space coming on market.

Expect the choice of tenants to create a bit of a self-contained community with the selection of retail and restaurant tenants. Plus a development this size should spur the gentrification of the Highland and Santa Monica area. It could use it.

Colliers International will be the landlord leasing agent for the triple net retail and restaurant space.

The project will be built on the site of two old Hollywood Nightclubs, Arena and Circus Disco. The owner, Gene La Pietra tried to develop the property himself, but couldn’t get the financing necessary to put it all together. I talked to him about this ten plus years ago. He did get the city approvals though so that will hugely reduce the amount of time it will take AvalonBay to get permits and start construction.

No one that I’m aware of has seen any architectural renderings yet, but I have little doubt that this will be a great project. Expect completion sometime in 2017.

Columbus Commercial Construction Update for September 2015

At the link is an update from Walker Evans of Columbus Underground regarding commercial construction progress in and around Columbus Ohio for September 2015. There’s a bunch of it, both already underway and just beginning.  Columbus commercial real estate agents will rejoice that we’re getting new restaurant, retail or office product to lease in many or most of these developments.

1055 N High http://www.columbusunderground.com/apartment-building-with-smart-car-only-parking-pushes-the-envelope-in-short-north for example pushed the envelope locally with micro car parking only. Also in the short north, the Jerome has begun. In Grandview Yard, the Wagenbrenner project, Pullman Way http://www.columbusunderground.com/new-homes-and-townhomes-planned-for-grandview-heights is also in the oven. Neighborhood Launch http://www.columbusunderground.com/the-neilston-apartment-building-to-break-ground-in-spring is getting started.  We have over 1,000 Columbus commercial Realtors and this is great new to all of us for very obvious reasons

Take a look at the following link to take a tour of Columbus commercial construction with Walker Evans

http://www.columbusunderground.com/construction-roundup-september-2015

Of course, if you need a Columbus Commercial real estate agent for a triple net retail or restaurant space or to purchase a building, I would be happy to talk with you.  Call me, Scott Harris at 614-905-6614.

Clintonville – Olympic Swim Club Mixed Use Project Approved

The slightly downsized project for the old Olympic Swim Club site at 3450 Indianola finally got its final zoning approval by Columbus City Council.

Initially, the project was slated for 152 apartments and 18,000 square feet of retail and restaurant, but that brought quite a bit of resistance from local residents concerned about traffic as these kind of projects always do.

The 3450 Indianola project was finally reduced to  114 apartments and 5,000 square feet of net leased retail or restaurant space.   Construction should begin in November, presumably, this year and will be named The Olympic.

The developer, Kyle Katz of Katz Development LLC and Crawford Hoying Development Partners LLC hope to find a polished casual restaurant and a coffee shop for the retail space.

I’ll say it again, for my readers who are still looking for Clintonville restaurant space, don’t wait too long.  Contact me, Scott Harris at 614-905-6614, and let’s get rolling on this if you’re interested.

Columbus City Council votes 7 – 0 for Hamilton Road 161 Project, Hamilton Crossing

Finally, after a decade of the fights with the Army Corps of Engineers over wetlands and then the real estate downturn, something is finally going to happen with this big empty field I drive by every day.

Monday night, Columbus City Council approved by a vote of 7 – 0 the 330 acre, $250 million project that’s a joint venture with Casto, Daimler, and New Albany Company. Casto’s website still refers to it as Albany Park.

As these type of project always go, it’ll be mixed use with a bunch of everything other than industrial. Included will be 1 million square feet of net leased retail, 800 multifamily units, 125 senior units, and eventually, 700,000 square feet of office space for lease.

A bunch of work remains to be engineered and underway before any building take place. First, is the realignment of Hamilton Road south of Dublin Granville Road into the six lane spur of Hamilton Road south of 161.

Expect to see much progress in 2016.

To my many Columbus restaurant clients, expect this project, as with everything else the last couple of years, to lease up quickly so if this is of interest, give me a call , Scott Harris Realtor at 614-905-6614.

The Short North White Castle Project Gets an Update

Columbus Short North retail and officeAs was just reported by Walker Evens of Columbus Underground, and just about everyone else, Borror Properties revealed its latest design update for the 11 story proposed replacement for the old pre WWII White Castle located at second and HN High Street.

After feedback from the Victorian Village Commission in April, Borror made some very visible design changes and some not so visible.

The commissioners asked Borror to break up the facade so it would look like several buildings instead one huge facade facing High Street.

The changes were to setback the building a bit more from the sidewalk and to tier the north end of the building so it blends better with the three story existing buildings to the north. Then, in my opinion, the building was modernized substantially to provide a nice contrast between all of the surrounding historic buildings and this one.

Then, not as visible, going from 11 stories with 150 apartments and 10,000 square feet of badly needed net leased Columbus retail and restaurant space plus the obligatory White Castle on the corner to 140 units with third floor office for a combined total of 24,000 square feet of office .  Still though, with the White Castle on the corner.

If you compare what I have pictured, rendering by Berradi+Partners, versus last month, you’ll see that the design was changed substantially, and in my opinion, now looks much better.

We certainly need more net leased restaurant and retail space in the Short North, but also need some new office space as the supply has gotten really tight.  This helps plus looks a bit better than the old White Castle.

Anyone for 11 story sliders?

Another huge project for Los Angeles’ South Park

shenzhen%201This is just amazing. Another mega project for LA’s south Park with a newly announced multi tower project with high rises up to 42 stories to be located at Olympic and Figueroa all the way to Eleventh and Flower.

China’s developer, Shenzhen Hazens Real Estate Groupis currently in the ntotlement process on the Gensler designed project, which they estimate will take a year to 18 months.

The first phase of the project will be the 30 story, 250 room hotel, plus another 30 story condo building. They anticipate that construction should begin in 2017.

The second phase will start immediately after with a 42 story condo tower plus an 80,000 square foot shopping plaza complete with Los Angeles net leased high end retail boutique shops.

Total cost of the project is expected to be in the range of $700mil.

Although it’s probably a little early to inquire about leasing some of the retail space, feel free to contact me, Scott Harris Realtor at 310-473-4789 with any questions.

 

 

 

 

Los Angeles’ South Park New Developments in Progress

In my 30 years in LA, never did I think I would see something like the following happening.

South Park, roughly defined as southwest of the Arts District, south of downtown Los Angeles, east of the 110 and north of the 10, has 28 new developments in progress.

Historically, what is now known as South Park got its start after the opening of Staples Arena 15 years ago at Figueroa and Eleventh, but most of the this got started less than five years ago.

This is remarkable in what used to be parking lots and run down 80 year old warehouses.  Take a look at the following link:

http://la.curbed.com/archives/2015/04/south_park_development_map.php

And remember, any questions regarding leasing some of that ground floor retail space, please call, Scott Harris Realtor at 310-473-4789.

 

Dublin’s – 420 Unit Casto Development Tuller Flats Approved

Dublin Ohio’s Planning and Zoning Commission has approved what is to date the largest of the developments in the Bridge Street District.

The construction of the 420 unit apartment complex will allow the city to begin construction of the John Shields Parkway connector from Village Parkway to Tuller Ridge Drive. Tuller Flats, once completed will generate the property taxes to pay for the roadway.   This will drive more net leased retail for Dublin.

See Columbus Business First for illustrations of the project.

http://www.bizjournals.com/columbus/news/2015/03/20/first-look-casto-s-tuller-flats-cleared-in-dublin.html

 

 

Columbus – East Franklinton Development with 69 New Lofts

franklinton live work loftsThe trickle of development in Franklinton will soon turn to a torrent as this long long neglected area becomes the next Short North. So here’s another small piece with a 69 unit work loft with first floor Columbus net leased retail located at 400 W Rich St. designed by Jonathan Barnes Architecture and Design.

The entire project is aimed at live/work says Chris Sherman who is the project manager at the complex.

Rents are expected to be reasonable with $500 per month for a studio and one of the two bedroom units for around $1,300 a month.   There will be a roof top patio and covered balconies.

I think we’re going to see a bunch more of this work/ live concept that’s been so successful in major metros such as Los Angeles.

Commercial Real Estate Construction Update for Columbus and Central Ohio

I didn’t get chance to get out and take any pictures in the last month so I’ll turn this topic over to Walker Evans with Columbus Underground at the link below the text.

In January work progressed pretty well, but February has been a different story.   I would expect some of these commercial construction projects to be a little late being completed.   It’s too bad because we have quite a shortage of net leased retail space, especially restaurant space.

Certainly, the weather will break in the next couple of weeks, but as I sit here writing this late at night on the 23rd, it’s 10 degrees below zero. Weather like this isn’t going to help getting any commercial construction work done outside. Schedules will be slipping a bit.

http://www.columbusunderground.com/construction-roundup-february-2015

Micro Living in Downtown Columbus

As downtown Columbus multiunit rents get silly and two bedroom flats can run $2,500 per month, there need to be an alternative for those who work downtown.

The solution has been in major high rent coastal cities to more toward micro apartments with just about enough room to inhale and exhale.   That trend is coming to Columbus, but in a slightly larger format of 400 square feet.

Two properties kick the concept off in Columbus. One at 260 S Forth and the other at 39 W Long. Rents at 260 S Forth range from $695 – $895 per month plus options .  Needless to say, the buildings will have ground floor retail like everything else does. Some units are available with a small 80 square foot loft. Also available are semi furnished and corporate units with everything included for a measly $500 additional per month.

Rents are in the $2.10 a foot range which is getting close to LA rents. As many have noticed, rents have risen hugely in Columbus for high end rentals, especially downtown and Short North.

http://microliving.net/properties/ If you have questions, please contact me, Scott Harris at 614-905-6614

Developers Chosen For Old Columbus Municipal Power Plant On Nationwide Blvd

The City of Columbus announced that they have chosen Brad DeHays and Schiff Capital to redevelop the three buildings that comprise the long closed Columbus Municipal Power Plant property at 555 West Nationwide Blvd.

The three buildings mentioned above are all on the north side of Nationwide Blvd.

The plan is to add retail, office and multifamily residential and turn this area into an extension of the Arena District. They’re looking at as much as 33,000 square feet of office space in addition to an auction house and event space.

On the south side of the street is the Columbus Central Outpost Center that will be moving to a new McKinley Ave. facility. This 5 1/2 acres will be developed by Borror Properties with a 60,000 square foot office building with multi unit residential on the north side of the office building.

Nationwide Realty controls the 25 acres that sits between the Central Outpost and the railroad tracks. At this time it hasn’t be determined exactly what will happen to this parcel, but I would expect more of the same with net leased retail, office and multiunit residential.

Completion is expected to be late 2017. If you have interest or questions, feel free to contact me, Scott Harris at 614-905-6614.

Rick Caruso does Pacific Palisades

Pacific Palisades

The reimagining of Pacific Palisades’ Palisades Village has been underway for years by Rick Caruso, developer of The Grove and Americana at Brand.   Now the actual work is about to begin and is expected to be completed in 2017.

Palisades is one of if not my favorite Southern California suburbs, but had become a little stale over the last 30 years or so.  I figured the redo would end up looking much like the retail section of Montana Avenue in Santa Monica.  I had no idea that the remake was going to be this extensive.

Caruso plans for Swarthmore to become more pedestrian friendly, reducing it from four lanes to two with wider sidewalks and change parking from parallel to angled plus a new garage to increase parking from two per thousand to four places per thousand square foot of retail and office commercial space.

He also plans a modern remake of the 1948 Bay Theater and to create new storefronts for ground floor net leased retail with second floor office all around the village.  Also planned is considerable more community green space.

See the video below for more detail.

Pacific PalisadesPacific PalisadesPacific Palisades