fourth quarter newsletter

THE LOOPColdwell Banker Commercial Atlantic Newsletter

Coldwell Banker Commercial Atlantic 3506 W Montague Ave. Charleston, SC 29418

Main: 843-744-9877 Fax: 843-744-9879 www.cbcatlantic.com

LOCAL KNOWLEDGE, GLOBAL PERSPECTIVE.

January 2015

Fourth Quarter

• Brent Case, CCIM and Kristen Krause of Coldwell Banker Commer-cial Atlantic represented the Land-lord, Nirenblatt and Hoffman, in the Lease of a 963-square-foot retail space at 1650 Sam Rittenberg Blvd Unit 4 in Charleston.

• Isabelle Martinez of Coldwell Banker Commercial Atlantic rep-resented the Seller, Thomas D. Lee, in the sale of 1.03-acre multi family space at 5631 Garrett Ave. in North Charleston.

• Tradd Varner of Coldwell Banker Commercial Atlantic represented the Landlord, PV II LLC, in the Lease Extension of a 1156-square-foot office space at 1037 Chuck Dawley Blvd. in Mount Pleasant.

• Kristen Krause of Coldwell Banker Commercial Atlantic represented the Landlord, Glick Boehm Archi-tect, in the Lease of a 1920-square-foot retail space at 493 King St. Unit 101 in Downtown Charleston.

• Kathleen Boswell of Coldwell Bank-er Commercial Atlantic represented the Seller in the sale of 1 acre of land located at 1111-1115 Bacons Bridge Rd in Summerville.

RECENTTRANSACTIONS

A WORD FROM OUR PRESIDENT, BRENT CASE




January 2015

Fourth Quarter

Charleston’s local economy is flourishing. What a great statement to be made at the end of a very successful fourth quarter and more importantly year.

As I reflect on 2014 I am overwhelmed with delight to be apart of Charleston’s growing economy and the pure positivity that this city radiates. I thank my team members and clients for your consistent hard work – it has been a pleasure working with all of you.

Some factors attributed to Charleston’s success as a whole include The Boeing Company, an expanding tech industry, tourism, and

The Port of Charleston. As Boeing is developing a facility for the 787 Dreamliner, they have committed to investing $1.1 billion over the next eight years. A once nonexistent tech industry is now referred to as Silicon Harbor and is predicted to bring in 8,000 more jobs over the next few years. For the fourth year in a row, Conde Nast Traveler has named Charleston the “Best City in the World,” which may explain the 4-million tour-ists we welcome each year. Lastly, The Port of Charleston has contributed $12 billion in wages after announcing it will be deepening its port to allow larger ships excess.

The amount of growth we endured this year will be a challenge to top, but I have no doubt that Coldwell Banker Commercial Atlantic and the City of Charleston MSA will continue this growth pattern in 2015.

Please visit www.cbcatlantic.com and submit any feedback.

Market Life Cycle

MARKET WATCH:

121 Spring StreetMult Family

Sale Price: $795,000MSL: 1427471

Kristen Krause 843-518-6674

3358 Cherokee StreetIndustrial

Lease Price: $6/SFMSL: 1427194

Ben Poblano 843-725-6887

29 Gamecock Ave.Office

Sale Price: $540,000MSL: 1427317

Tradd Varner 843-725-6892

INDUSTRIAL BY BENJAMIN POBLANO

Port, shipping volumes are up another 15% from 2013 while Boeing continues to add jobs and expand their South Carolina operations.

For more information on the Charleston market or available properties, you can reach Benja-min Poblano at [email protected] or by phone at 843-566-5822.




January 2015

Fourth Quarter

In 2014 Charleston’s industrial market experienced definite and sus-tainable growth. Over the course of the previous 12 months vacancy rates have fallen, while both rental rates and purchase prices are on the rise per square foot. As it stands there is very low availability especially for smaller spaces under 50,000 square feet within the industrial sector. A lack of available space in the short term will continue to push prices up eventually leading to future development. Expect new, more func-tional buildings to spring up within the coming years specifically along Palmetto Commerce Parkway and surrounding industrial areas. The current health of the market and future growth are directly tied to the continued performance of the Port of Charleston and Boeing. For the

OFFICE BY TRADD VARNERCharleston continues to be an attractive option for Technology, Bio-medical, Manufacturing, Tourism and Trade related industries. Charles-ton’s real estate market is very much in the expansion phase of the cycle, we are seeing decreasing vacancy rates, moderate new construc-tion, and moderate rental rate growth. Some notable office projects listed below:

• 101 Coleman Blvd. - Mt. Pleasant - 42,000 SF Under Construction• Horizon Project - Charleston - 150,000 SF Proposed• Cigar Factory - Charleston - 155,000 SF Under Construction

Through the end of the fourth quarter the office market has seen relatively no change in the number of sale or lease transactions, but has seen a major increase in transaction size. According to CMLS Data office sales totaled $36,348,010 (23 transactions), representing 198,807 square feet at an average of $182.83 per foot. During the same period a total of 218,014 square feet of office (97 transactions) were leased, up 2% from the previous quarter transactions and down 9% in square footage absorbed.

For more information on the Charleston market or available properties, you can reach Tradd Varner at [email protected] or by phone at 843-725-6897.




January 2015

Fourth Quarter

As we come to a close of another wonderful year, we look ahead with a glimpse of the future of what is to unfold in the downtown Peninsula of Charleston, South Carolina in 2015.

With over six new hotels slated to open in 2015, it’s no surprise this is due to the overwhelming press voting Charleston as the best place to visit in the USA and 2nd in the World, according to Conde Nast Magazine.

Peninsula that have increased retail sales and hold over 98% occupancy.

Below are a few new retail stores that opened their doors during the last quarter:

• Corneau Goldsmithing Michael Corneau, famous Gemologist, recently opened his hand-crafted jewelry/gem shop and will become a “must have” in Charleston for locals and visitors. Located at the corner on 92 Hasell Street. www.corneaugoldsmithing.com

• The Hive Hair & Nail Salon just expanded in their three-story historic building of the Pink Dot Beauty Bar. Now you can be pam-pered head to toe before that family wedding or next special occasion. Located at 227 Meeting Street. www.facebook.com/mspinkdot

• Freshii has some of the best sandwiches, smoothies and salads com-plete with a healthy kale wrap that is unique and delicious. Located at 375 King Street. www.Freshii.com

• MOSA Boutique located at 420 King Street offers amazing designer clothing and one-of-a-kind craft beer they make themselves. Perfect for wedding parties to sip and shop. www.instagram.com/mosaboutique

• Intiality Boutique located at 493 King Street with Angela Miller Designs. Custom design initialing/monograming clothing and accesso-ries.

For more information on the Charleston market or available properties, you can reach Kristen at [email protected] or by phone at 310-699-2765.

Downtown is bursting at the seams with limited retail space available for under $45 per square foot. The in-crease of retail sales and a steady flow of new business-es wanting in on the Charleston market has impacted the rates and availability of retail spaces. Meeting, East Bay and King Street are a few locations in the growing

RETAIL ON THE PENINSULA BY KRISTEN KRAUSE

MARKET TRENDS

MULTI-FAMILY

OFFICE

RETAIL

INDUSTRIAL

The data reflects regional and local demands for commercial real estate, developing multi-year forecasts of rent growth, vacancy rates, new construc-tion and absorption.Source: Reis

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January 2015

Fourth Quarter

MULTI FAMILY BY JOHN TRUEOverall, the Charleston Metro apartment market continues to be very healthy and strong. With a local unemployment rate at its lowest in recent memory and a growing population due to a high quality of life in Charleston, we have seen the occupancy rate climb to a post-recession high of 96 percent. In 2014, inventory had grown by 2.9 percent and is expected to expand another 4.4 percent, ranking Charleston very high among the nation for inventory growth. The inventory growth is being offset by an even stronger demand and the fore-cast looks very promising as we head into 2015.

Notable developments:“Demand has benefit-ted from favorable job growth trends, includ-ing Boeing’s expansion plans and the growth of hightech businesses that are drawing young residents in favor of ame-nitized renting rather than owning real estate.” - IRR Viewpoint

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^ • Campus Works’ 930 NoMo:This development is slated for a fall 2015 delivery. It’s currently un-der construction at the foot of the Ravenel Bridge. This development will cater to student housing needs for the College of Charleston including 430 bedrooms, lounges, a pool, fitness center and a rooftop terrace. • The Evening Post Industries partnership with Greystar:Another skyline changer on the peninsula will be this partnership as they move forward with the beginning stages of their long-term redevelopment plan. The 12-acre downtown propertyis located at the corner of Meeting and Columbus Street. Phase I, named “Courier Square” will be a mixed use project that will include office, retail and 215 rental apartments.

For more information on the Charleston market or available properties, please contact John True at [email protected] or by phone at 843-568-3140.

“Driven by the tourismindustry, King Street remains a premier retail destination with near record high occupancy and lease rates, some lease rates reaching into the $60 NNN range”- IRR Viewpoint

RETAIL BY BRENT CASEThe retail industry in the Charleston market has remained balanced. In addition to the soaring rents on King Street, we are seeing retail rents increase through-out the market. As one would expect, vacant space is also difficult to find in the high demand areas. There is a need for new development, but it is being stalled by a few factors. First, there is no available land in the desired areas. All the ten-ants want to be in the best sites, but there is nothing there to neither redevelop nor land to build new centers. Tenants will have to settle for class B sites and increase their advertising budgets to compensate. Second, banks are stricter with preleasing and over all underwriting requirements for new development projects. Therefore, new deals require higher cash amounts to get projects complete. The last factor is permitting; many municipalities are understaffed

and can’t handle the demand load. The extended time increas-es risk and again driving development costs higher. However, where there is a will there is a way and I expect to see some new growth centers popping up in 2015.

For more information on the Charleston market or available properties, you can reach Brent Case at [email protected] or by phone at 843-725-6255.

5 PREDICTIONS FOR 2015:




January 2015

Fourth Quarter

MAKING A DIFFERENCE IN 2015 BY MARLENA FRANKLIN

1. Oil Prices Will Help Contain Inflation - Decreasing energy prices will likely pull headline inflation measures lower during the first half of 2015.

2. Housing - Residential con-struction is predicted to gain mo-mentum in 2015 as single-family construction makes a comeback.

3. Real Consumer Spending - Real consumer spending has remained at a modest pace and will likely continue to as we move into 2015. Since the end of the recession, real consumer spending growth has been stuck between 2.0-2.5%.

4. Challenges Ahead “A Steel Curtain of Interest Rates” - Outside of the overall slow pace of disposable income, there is also evidence that spending pow-er remains uneven across income levels.

5. Homeownership Attitudes - The decline in homeownership has sparked considerable debate as to how much attitudes toward homeownership have changed and how much of this change is long lasting. Nowhere has the debate been more vocal than “Millennials” households. We predict that homeownership in 2015 will slowly gain momen-tum.

Source: WFRE 2015 Economic Outlook

Is your company recycling?Yes I said it. The sentence that may makes your toes curl. I can write several reasons why recycling is rewarding and very beneficial to you, your workplace and of course the Earth.

I once read an article that said you will get fewer dates if you don’t recycle! So if you are single, that alone is one good reason to start! Recycling can be inconvenient; you actually have to think - what goes in which container…I get it. Offices that do not recycle may not be

aware of the basic facts that it saves money and creates jobs. There are over 17,000 plastic recycling centers, which produce more than 52,000 jobs in that field. If everyone recycled think of the jobs created! Did you know that nearly 90% of what we throw away could po-tentially be recovered through reusing, recycling or composting?

Recycling is about more than just our trash. It is about reducing consumption and reusing items. Reducing is an easy way to begin recycling rather than not starting at all. It will give you that feel-good attitude and confidence to take bigger steps. Growing up, my parents were always nagging, “turn the light off when you leave” or “shut the door when you go outside.” For them it was just about saving money on the power bill. Who knew our parents were ahead of their time in conservation and that they were right, it does save money and energy. See you are recycling already! Below I have summarized a few suggestions on how to recycle:

1. Do you currently use the inexpensive lights bulbs? You know how they always seem to be burning out? Instead of replacing them frequently, replace them with the compact fluo-rescent bulbs. They are a little more expensive, but they use 75% less energy and last up to 10 years. Imagine not having to change a bulb for 10 years! 2. Do you currently use power strips or surge protectors around your work area? I plug several items into one strip and when I am finished for the day I simply flip one switch and everything is off. 3. Those who work in offices throw away enough paper to build a 12-foot high wall that could connect New York City to Los Angeles. A year’s worth of newspaper comes from chopping down 30 million trees! Talk about reusing - I use old newspapers as gift wrapping paper, for compost I make cups for new seedlings which can be planted right in the ground, and tightly wrapped bundles make good logs for the outside fires. 4. Recycle your glass bottle from lunch - 1 glass bottle that is recycled can save enough energy to light a 100-watt light bulb for 4 hrs. 5. Don’t forget to recycle you’re your lunch’s soda cans either - 95% of energy that is used to produce cans from virgin ore, can be saved by recycling aluminum cans.

Energy doesn’t come from the “LaLa Land of Infinity Magic.” My parents also put this man-tra in my head and I still hear it almost anytime I am being wasteful: “Waste Not - Want Not”And it still rings true even more today.

By: Abigail Darlington [email protected]

It’s been a record year for South Carolina’s tourism industry, and researchers predict

2015 could be even better.

Duane Parrish, director of the state De-partment of Parks, Recreation and Tourism, called 2014 a “memorable and record-setting” year for the statewide tourism industry.

“We expect to carry this success beyond 2014 and continue improving the economy and quality of life in South Carolina,” he said in a written statement Monday.

From January to October, the average hotel’s revenue was $60 per available room, which was 10 percent higher than the same peri-od last year. Hotel earnings data take a few months to aggregate, so October is the latest report available.

Smith Travel Research predicts hotel occu-pancy in South Carolina to remain strong and improve slightly in the first quarter of the new year.

Dan Blumenstock, chairman of the Charles-ton Area Convention and Visitors Bureau, said hotels across the Lowcountry saw fewer “peaks and valleys” this year as more business travelers checked in during the slower tour-ism months.

“I feel like our corporate travel this year had a strong presence, and as you look at our economic growth in the Charleston area, that also helps in our hospitality realm as well,”

he said. “Whenever we are attracting good companies, it’s affecting more than just the downtown market. It’s all subsectors, like Mount Pleasant, North Charleston and West Ashley, that will be impacted from a corporate travel standpoint.”

Another indication that South Carolina’s tourism industry is on the upswing is the climbing revenue rates at state parks. Revenue in October increased more than 20 percent compared to last October. During Halloween weekend alone, revenue increased 10 percent.

Also, the state has seen more than a half-billion dollars in development in the past year for new hotels and expanded attractions, Parrish said.

“An improving economy is restoring confi-dence in consumers, investors and developers enough to boost business in the state, and we’ve developed impressive promotional campaigns and forged new partnerships to keep South Carolina at the top of their minds,” he added.

Parrish traveled to India for two weeks last month with Gov. Nikki Haley to promote the state as a top Western destination. As a result, representatives of several top travel groups from the Asian nation will visit Charleston next year.

For the entire article visit www.postandcourier.com

South Carolina tourism chief calls 2014 a record year for hotels, state parks,

new developments




January 2015

Fourth Quarter

Employee Spotlight:

Name: John True

Title: Commercial Broker

Specialty: Multifamily Development

Experience: 15 years in the biz

Favorite News Publication: Wall Street Journal

“Outside of work, you’re most likey to find me...”:“...on the beach with my girls“

Let’s Chat:[email protected]

fourth quarter newsletter

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