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January 4, 2013
 
 

Hottest Cities of 2013


 

Secondary markets are going to be the in thing of 2013. (Main factors: Job growth and a business-friendly environment.) So where will you find the best deals this year? We were surprised by some of the cities our experts suggested.

 
San Antonio—Boxer Property director of acquisitions Andre Pereira (whom we snapped yesterday afternoon) tells us San Antonio is the city he most hopes to shop in this year. Job growth is strong, and it’s a tight market with very little development. Plus, values took a minimal hit through the recession and they’re raring back now.
 
Atlanta—RCA managing director Dan Fasulo believes Atlanta will see the best value recovery this year. He says capital will go where product is, and Atlanta boasts plenty of institutional product and tenants. It’s been off to a slow start this cycle, but look for that to change in 2013.
 
Salt Lake City—Dan thinks California is becoming increasingly business unfriendly, so international companies who want West Coast/Asia coverage will need an alternative. He predicts Salt Lake will be especially targeted, and Las Vegas and Phoenix should also benefit.
 
Denver—Act fast: Andre says there are still good opportunities, but Denver is heating up quickly and may start to get competitive.
 
Minneapolis—Dan says the turnaround in Minneapolis has been dramatic. Only a few years ago, people were discussing how weak the market was. Now it’s considered a stable investment.
 
North Carolina and South Florida—Andre says Sunbelt cities with job growth are definitely on his radar. In particular, he’s eying Charlotte, Miami, Fort Lauderdale, and Orlando.

15M SF of New Year’s Resolutions

 

Talk about ambitious: Dallas-based Hillwood Investment Properties EVP Tom Fishman hopes to nab 15M SF of industrial acquisitions in Hillwood's existing markets as well as three or four new markets in 2013. That’s a 50% increase over the better-than-expected 2012, which included $400M in activity (for 10M SF) for the Hillwood/Brookfield JV fund—10 acquisitions, one JV, and one new development, across eight markets (Memphis, Inland Empire, Atlanta, Chicago, Indy, Baltimore, Orlando, and Philadelphia/South New Jersey). Watch here.


That's a Lot of Apartments
 
Reis 2013/15 Apartment Delivery Forecast

100,000 apartments (under construction, planned, and proposed) are slated to come online this year in 10 US metros with the biggest pipelines. Now compare that to 40,000, the units delivered in 2011—
in all 79 markets Reis tracks. Still, the building boom may not be as overdone as it seems. Reis chief economist Victor Calanog tells us the busiest builder, Dallas, has a long history of building—and absorbing—a lot of units, as do other Texas markets. Strong employment in the energy sector there also makes a case for sufficient demand. Tech plays the same role in Austin and in Denver, which also happens to be coming off a five-year delivery dearth.


TRAVELOGUE

 

We thought you might be getting a little cold around now, so we did some hands-on research for you in Maui last month. The lavish setting of the Ritz-Carlton Kapalua seems like it comes gift-wrapped, even though it was just Xmas décor. Built in ’92, its original style was the uniform marble and brass Ritz applied to all its hotels back then, even in the middle of the Pacific Ocean. Wanting to reflect its locale better, the resort spent $180M in renovations five years ago, reducing 560 rooms to 463 and putting things in sync with Polynesia: Chandeliers were replaced with lobster trap lighting fixtures, the lobby bar wall was remade with lava rock, and a Jean-Michel Cousteau environmental learning program was created for kids and adults.

 

They call this adventure luxury, and although there are some other nice resorts 30 miles away in Wailea (Four Seasons, Fairmont, Grand Wailea), the Ritz prides itself in being more of an oasis and less "another place on hotel row." It suggests May and September for value opportunities  before and after school vacations, if you can get away.

 
Of course you can also hike canyons and even to volcanos, or surf, snorkel, golf, kayak, sail, or fish. Or go as we did a few miles to Lahaina and watch whales leap 30 feet from your boat. More info.
 

If you find a wallet with a ton of cash in it, it's ours. We lost it wherever you are. Email Sibley@bisnow.com.

 
 
 
 
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