November 10, 2006 - November 16, 2006
Provided by Commercial Real Estate DirectOffice, Industrial Markets Strong into 2007
Rising rents and a steadily growing economy have commercial developers and investors looking optimistically into 2007. According to the 12th semi-annual Vital Signs survey by the National Association of Industrial and Office Properties, 71% of respondents reported increased rents in their local markets. The industrial market is seeing a similar boon, with 66% of respondents reporting rising rents. NAIOP is predicting continued upward momentum through 2007, with exceptional growth along the Pacific Coast due to strong Asian trade. Increasing rents have led survey respondents to look more favorably on development, specifically in the industrial, office and research and development sectors.

Seattle Tops for Office Investment
A new report ranks the Seattle-Bellevue area as the most desirable region in the nation for office property investment. The Seattle chapter of the Urban Land Institute issued the report, which reflects the views of about 600 commercial real-estate brokers, lenders, developers, investors and consultants. More than half, about 51.5%, said they would recommend buying an office property in Seattle, the highest percent among cities including San Francisco, Los Angeles and New York. Seattle also ranked in the top five for overall commercial development and investment prospects.

Las Vegas Apartment Market Heats Up
The Las Vegas apartment market continues to heat up with monthly rents projected to increase by 5.3% to $836 by the end of the year, according to a report from Marcus & Millichap. Developers are responding to the demand by constructing more apartment projects. In fact, construction of multifamily rental units will exceed the number of units taken off the market for condominium conversion for the first time in three years. Las Vegas’ apartment market also recorded a 96% occupancy rate this year, according to the report.

Mammoth Mixed-Use Project in Atlanta
Two developers have teamed up on a massive mixed-use project to cover three city blocks. The developers announced plans to build a 2.5 million sf center in the city’s midtown area. The $1.1 billion project would include 1.2 million sf of office space, 500-plus hotel rooms, 600 apartment and condo units and more than 150,000 sf of retail space. The retail portion is being lauded as the city’s first destination shopping venue. The project is part of the “Midtown Mile” project, an initiative spearheaded by the Midtown Alliance to create an outdoor shopping district.

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