Office landlords may be ready throw the hungry capital markets a line. But do investors have enough of an appetite to bite? Or the antacids to digest?
We ran into CB Richard Ellis' Will Yowell (momentarily camera shy, we pulled a pic of him at a recent event) having lunch with some unidentified clients at Bricktop's on Thursday. His CBRE team is gearing up to bring a busy pipeline of office buildings to market throughout the Southeast right after Labor Day. While this may not heal the bifurcated markets (we suggest a butterfly banadage), he says it shows that more investors are willing to look at product in not only cities like Atlanta, but in tertiary markets like Alabama and the Carolinas. The yields, pricing, and returns investors have to achieve in the major markets are getting so competitive ?that people are saying the risk to go to Atlanta is worth it.?
In fact, Will's team just helped broker the sale of the LaSalle portfolio— a four-building office deal that included 3585 Engineering Dr (pictured), 6625 The Corners Pkwy, 5707 Peachtree Pkwy (all in the Peachtree Corners submarket), and 6455 East Johns Crossing in Johns Creek for an undisclosed sum. New Mexico-based Rosemont snapped up the 400k SF in office space, one of the rare major suburban office trades in recent years. ?It reflected very solid, stable pricing for suburban properties, which we saw very little of? in the past two years, he says.