Thursday, February 9, 2012

RETAIL LEASING OUTLOOK - GASTON COUNTY

I received my CoStar Newsletter this morning and saw an article of interest which I repost some of here with all credit given to CoStar and Randyl Drummer.

Retail Outlook: Cautious Optimism

By Randyl Drummer

February 8, 2012

Retail property rents are expected to begin to rise later this year as demand for store space in shopping centers and malls slowly soaks up available space and, combined with the dearth of new space under development, finally tips the supply and demand balance.

Improvements in market fundamentals are starting to spread into secondary markets and smaller shopping centers typically occupied by Mom-and-Pop businesses, according to CoStar’s 2011 Retail Review & Outlook, presented by Senior Real Estate Strategist Suzanne Mulvee and Real Estate Economist Ryan McCullough.

Mulvee: "Because of the lack of new construction, we’re encouraged by the trend continuing a slow, steady recovery of fundamentals. What’s different is that we expect this will be the year that rents come back. .And as rents start to come back, the (leasing) volume will come back and all of a sudden, it’s going to start to feel better across the sector and across the industry.

McCullough: “Fundamentals should continue to tighten regardless of potentially economic landmines like a financial meltdown in Europe or rising energy prices because there’s virtually no growth in supply.  The level of sales per occupied square foot of retail space, an important leading indicator of demand, shows that consumer dollars are flowing through shopping centers that survived the recession at a rate exceeding the peak of the last cycle -- numbers which should encourage aggressive expansion by retailers, driving up demand this year.”

As has been the trend for several quarters, power centers and malls occupied by national retailers with better access to capital and credit are seeing the strongest demand. However, CoStar has also noticed an uptick in the leasing of spaces 5,000 square feet and under by the smaller tenants that fill strip centers and community shopping centers.
Mulvee: “Improvements in these retail centers should accelerate in 2012, another indication that Mom-and-Pop stores as well as national franchise retailers are seeing improved business conditions.”

Without any new construction, and Gaston County has been slow (see Building Permit Post Below)  almost any demand shrinks the available supply. Right now action would be proactive but the article suggests waiting may reduce selection and see increasing rents.


See my available rental units at www.showcase.com (CoStar) or www.gastoncommercial.com



Friday, February 3, 2012

There Is An Industrial Contractor in Gastonia

I was taking inventory of our businesses the other day and I was struck by how cylindrical things are. In the early 80’s when I came to work fresh out of Georgia Tech we were in process chemical equipment sales. During the recession of the early 80’s we started to install the equipment which led to building mezzanines for tanks and equipment which became tank farms, control rooms and specialty process rooms. All growing into a full time construction company as the chemical companies left the area because the textile companies had left and there was no one in the market for their coatings, sizings, detergents, dyes, etc…

The recession which started in 2008 and the credit/lending crunch have devastated new building development work. Slowly rising up is a return to specialty and niche construction. Plants and facilities are reworking themselves to be leaner and to produce more or varied products. This requires work by a contractor versed in the industrial environment, sensitive and knowledgeable to the needs of these clients.

We are that company, ICM. Industrial Construction and Maintenance, Inc. We have that experience. We have that knowledge base. Maintenance in our name refers to machinery relocations and installations not broom pushing. Call us and so we can prove ourselves as your problem solver.