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How To Start A Building
May 30, 2013

How To Start A Building

Owners of Perimeter Summit are considering high-end housing near the Villa Christina.

2013-05-22 07.11.33
Seven Oaks Properties' Bob Voyles told an audience of more than 300 CRE pros at our third annual Future of Central Perimeter event that the firm is eyeing—along with an unnamed institutional partner—the development of either condos or luxury apartments at the Perimeter Summit property, which will complement and help other retail elements in the park, particularly Villa Christina, he says. So far, the project is very preliminary. (We've been saying the same thing about building shelves in the garage for eight years.)
Wilson Hull X Intext

2013-05-22 07.14.08
Another project update for Central Perimeter is Northpark. Hines Interests' John Heagy says the project (at least the office portion) has passed muster of a Sandy Springs' committee. And now on June 18, it goes before the mayor and council for full approval.
CohnReznick (Think) MATL

That led to discussions about just what will it take to get a new office building started in Central Perimeter, especially since big blocks of space are running out there. The consensus: Rents above $30/SF (at a time when they hover in the low- to mid-$20 range) and pre-leasing as much as 80% of the building. "We're kind of in some uncharted territory here from a rate standpoint," John says, adding that any underwriters will want "serious skin in the game" from the developer. (Our friend Shylock gave us a pound of flesh once... would that work?)

Trending Rob Learnard

In five minutes, neither Cassidy Turley's Rob Learnard nor Clark Gore could score. Luckily, they're both really good at CRE. We caught up with the duo at their office lounge, playing some foosball. Rob joined Cassidy Turley in Atlanta this year after CT acquired Tampa-based CLW Real Estate Services Group. And with Rob, CT got a 30-year project management vet. He's now working with Clear Channel Communications' HQ in NY, which recently moved into a new 110k SF office. One big trend he's seeing with corporate clients is that their demand is up but they need less office space. A paradox? Nope, Rob says. It has everything to do with more open-space office layouts. (Soon companies are just gonna have tents in open fields: Woodstock Offices.)

Interest Rate Prediction

We've got more ICSC RECon leftovers from Las Vegas last week, where we spent some time with Faris Lee CEO Richard Chichester and senior managing director Dennis Vaccaro to talk investments and interest rates. We asked Richard why he believes retail centers are offering the most dynamic investment today. Multifamily is peaking and "pricing may be pushing into the bubble category." Industrial is safe, but if you look at the fundamentals, rents have gone down, he says. And office? Well, it's commoditized and hard to build lasting relationships when tenants and companies are fundamentally changing how they use space. Richard also offered his prediction on when interest rates could rise. Click the video above to find out.

Dennis says retail investors have been chasing more multi-tenant properties as caps have compressed in core and triple-net centers. (If we didn't know better, that would sound like directions for a video game.) "For five years, there was a big segment of the multi-tenant industry that was unsellable," he says.

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