CBRE to Buy Trammell Crow in $2.2B Deal
CB Richard Ellis Group, Inc. has agreed to acquire Trammell Crow Co. in a deal valuing the Dallas firm at about $2.2 billion, including assumed debt. The acquisition would give CB some $4.4 billion of annualized revenue, which CB said would make it the first commercial real estate services company to qualify for the Fortune 500 list of the largest U.S. corporations. The acquisition is slated to be completed by the end of 2006, or early 2007. CB said it would retain the Trammell Crow Co. brand and that its development and investment operations would operate as independent units.

Detroit Can Support More Retail Development
Detroit has the market to support more retail development, according to a report published by the Brookings Institution, University of Michigan, Detroit Economic Growth Corp. and Downtown Detroit Partnership. The report claims there is demand for 125,000 sf of grocery stores in downtown Detroit and 389,000 sf of clothing, furniture and electronics retailers. The report also said the expanded downtown area has a workforce of 193,000 and if worker spending is estimated at $1,800 per year that translates to a spending potential of $350 million.

Denver Area Apartment Market Heats Up
The Denver-area apartment market’s third quarter vacancy rate fell to a five-year low of 6.7%, according to the Denver Metro Area Apartment Vacancy and Rent Survey. In the third quarter of 2005, the vacancy rate stood at 8%. Douglas County posted an average monthly rent of $956 in the third quarter, the highest among the six-county Denver area. Adams County recorded the lowest average monthly rent in the third quarter with $781.

Albuquerque Commercial Space Expands in Q3
More than 124,000 sf of commercial office space was added to the Albuquerque, NM market in the third quarter. And all but 20,000 sf of that has been absorbed. Much of the growth has been concentrated in the North I-25 corridor. The area’s vacancy rate has dropped to 12.6%. The Rio Rancho submarket is the area’s strongest with about 4.6% vacancy while the downtown market vacancy hovers around 20%.

Office Rents Rising in Harrisburg, PA
Office rents are increasing in Harrisburg, PA for the first time in a nearly a year. A report from Landmark Commercial Realty notes that rents have increased in all sub-markets, driven by a surge in demand. The vacancy rate on the city’s West Shore has dropped to 13% from 20% at the end of 2005, while the class-A vacancy rate downtown has held at 2% for the past year.

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