Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/306204
42 May | June | 2014 Commercial Investment Real Estate W E S T Las Vegas Retail Snapshot Despite the fact that Las Vegas has a retail vacancy rate of 9.2 percent, down from 11 percent, and rents have stabilized, there's still about 4.8 msf of vacant retail space, granted, down from 5.5 msf in 2011. But in another version of "if you build it, they will come," three suburban retail projects are under construction and will add about 2 msf of additional space to the Las Vegas market. T e largest of these projects is T e Shops of Summerlin, a 1.6 msf regional center that will open in October af er a f ve-year construction hiatus. Tenants include several large well-known retailers, such as Macy's, Dillard's, Trader Joe's, and Nordstrom Rack. While the appearance of these national tenants bolsters Las Vegas' faith in itself, there's still a long way to go. Retail vacancy was between 3 percent and 4 percent from 2000 to 2007; today, market watchers say 7 percent would be healthy enough to ignite some rent growth. Source: Las Vegas Review Journal S O U T H Charlotte, N.C., Warehouse Report Charlotte recorded the lowest year-end warehouse vacancy rate in more than 25 years. METRIC 4Q13 4Q12 Vacancy 6.9% 12.5% Rent $4.20 $4.12 Net Absorption 600,604 503,147 Source: Piedmont Properties/Corfac International Á Ä Washington, D.C.'s Big Deal More than seven years in the making, Washington, D.C.'s southwest waterfront project known as The Wharf broke ground in March. The $2 billion, 27-acre, mile-long mixed-use development on the Washington Channel will include 3.2 million sf of offi ce, residential, hotel, retail, and public space. After three acts of Congress and seven City Council votes, the fi rst $800 million phase will complete in 2017. Developers PN Hoffman and Madison Marquette will add 200,000 sf of retail, more than 400,000 sf of offi ce, a hotel, condos and apartments in the fi rst phase. REGIO NAL OUTLO O K N A T I O N A L Big-Box Cap Rates, 4Q13 Region Asking cap rate (%) Northeast 7.50 South 7.25 Midwest 7.35 Mountain 8.0 West 6.63 Source: The Boulder Group EAST 4 2 - 4 3 D - R e g i o n a l . i n d d 4 2 42-43 D-Regional.indd 42 4 / 2 9 / 1 4 3 : 1 0 P M 4/29/14 3:10 PM