Millridge Real Estate Blog

Published: Sep 22, 2009 03:40 AM in The News & Observer

Mid- Year Review notes from 23 July 2009

 On the 23^rd of July a hundred or more real estate and associated business professionals attended the Mid-Year Space review held by the Triangle Business Journal at the Embassy Suites in Cary, NC. Here are a few notes I took on each section, along with the presenters name and subject.  Please see the attached slideshow from the presentation as a reference.

 Keith Crisco/Keynote Speaker:  North Carolina Secretary of Commerce.  He discussed how North Carolina is aggressively competing for new businesses against neighboring states in the region and how important tax incentives can be.  He also stated that these incentives are tied to performance and the ability of the incoming company to employ the number of people they projected.  So if a company does not employ 90% of their projected number of new jobs, they do not get the incentive for that year.  He also said that there have been 4500 new jobs created in the state since JAN 2009.

Matt Riggs/ Construction Costs: Vice President of Centurion Construction.  Construction costs are down 40% from OCT 2008.   He said there are a number of issues that will cause construction costs to increase in the future: Infrastructure building in China which will effect raw material costs, “Green” building concepts that may be integrated into building code,  the possibilities of companies being required to provide healthcare .

Mike Munn/ Regulatory Issues: Vice President of the John R. McAdams Company.  The proposed franchise Tax for LLC’s and LLP’s has not passed yet.  There has been some development extensions which extends permits for current developments (Bill  SB831).  The Jordan Lake rules became law on June 30,2009 and increase the standards for stormwater management.  The Falls lake rules are under revision and expect to see more changes as a result of the drought of 2007, which also resulted in a tiered water rate which increased water costs.  Expect to see a new term emerge called LID or Low-Impact Development which will be the next LEED.  Expect  to see new regulations that stress the importance of water quality and quantity.

Bernard Helm/Residential Market: Market Opportunity Research Enterprises (MORE).  New home sales down 30-40%.  The average price of a new home is down 8% when comparing 2Qtr 2009 with 2Qtr 2008.  Volume of home sales is down 30% when compared to the peak in 2006/2007.  Many lenders are holding large numbers of properties and many homeowners are holding on to their properties instead of selling right now.  On the positive side the rate of decline is slowing. www.morereport.com for more info and see TBJ SPACE slides.

Amanda Jones Hoyle/Real Estate By the Numbers: Real Estate Reporter, Triangle Business Journal.  The Flex market is stable right now with little increase or decline in vacancy rates with warehouse vacancies increasing.  Office vacancy topped 18% which is the highest it has been in the last 20 years.  Very little new space will be built over the next few years.

Rex Thomas/ Looking Ahead, What’s in Store: Chairman and CEO, Grubb& Ellis/ Thomas Linderman Graham.  Historically recessions have lasted about 3 years, but this is not a normal recession.  The vacancy rates are projected to peak in 4^th QTR 2010 or 1^st QTR 2011 with unemployment rates to increase through mid 2010.  Retail trends are going to change significantly since people have changed their spending habits.  The triangle is expected to emerge from this recession ahead of the National Market with the triangles population expected to double by 2025.  The accolades from National magazines have made this an attractive place to relocate to and start businesses.

Matt Rhoad/ Legal Trends: Lawyer, Smith Anderson.  The legal trends right now are toward more lawsuits and less deals.  There is an increasing importance on comprehensive community planning which tend to drive rezoning approvals.  Matt referred to the city of Raleigh 2030 draft plan (431 pages) that was released DEC 2008 and includes 17 different categories of future land uses and has a future land use map.  There is still some time to influence this plan since it will probably be voted on in SEP 2009.  After the comprehensive plan is voted on their will be an overhaul of the UDO(Unified Development Ordinance) and development regulations.

The auction method has advantages for every party in the event: the buyer, seller, all bidders and spectators.

Buyers often find rare items and can usually take home their purchase right away from an onsite auction, not waiting for shipping or incurring shipping costs after they have already purchased an item.

Sellers at auction can usually be assured that their property will sell on a certain day. Real estate sellers, in particular, like the fact that a sale on a specific day will end their carrying costs and they enjoy being able to set a minimum price they will accept at auction.

Bidders have a great time, even if they don’t always get their chosen item. They eagerly anticipate the item coming up for auction; they think about how high they will bid; they watch the competing bidders and often talk with them afterward.

Spectators at auction enjoy an exciting event and seeing what types of items are offered in auctions these days. Attendees don’t feel pressured to buy, and they can bring the whole family to see and learn about antiques, art, furniture and other items.

Auctions are a community event. People see friends and meet new people. Auctions have been a social gathering for thousands of years and continue to be the best way to determine current market price for items.

Here are a few other facts about auctions.

• A speedy process.
  There’s no doubt that an auction is the fastest sales process around. It’s quick and efficient and that’s what makes it attractive. We sell a multitude of items in a short time.
• You Set Your Own Price and Establish a Value.
  You are in control at an auction. You decide when to bid and how much to bid - how high or low you want to go.
• Certainty of Knowing What You’re Getting.
  Auctioneers deal with a wide range of merchandise. They are educated professionals who know value and price. Many have special certifications in personal property or estate appraisals.
• Fun and Excitement.
  There’s no doubt that an auction is entertainment at its finest. Crowds of people competing for unique property, combined with that lively and rhythmic auction chant make for some great entertainment and fun. It’s an event the whole family can enjoy.
• Honesty of the Transaction.
  Auctions are very organized and the rules are straightforward. Auctioneers who are members of the National Auctioneers Association, as I am, are bound by a code of ethics that protects consumers against unfair auction practices.

www.auctioneers.org

Distressed properties reflect struggling market fundamentals

Commercial real estate closed the first half of the year with weakened fundamentals and a slow pace of transactions amid difficult economic conditions.  Demand for commercial properties dropped precipitously, bringing down prices and rents.  In addition, maturing commercial debt was met with little available credit, leading to a jump in delinquencies and distressed properties.  As space flooded the market, vacancy rates have been rising across the board.  And while the economic decline is showing signs of a slowdown, commercial real estate continues to face strong headwinds.

Commercial real estate activity has suffered from a severe credit crunch for commercial sectors, sustained job losses and weak consumer spending, although the decline appears to be slowing.  A forward-looking indicator shows commercial real estate will remain weak into 2010, but recent actions by the Federal Reserve should improve some flow of capital into commercial lending, according to the National Association of Realtors®.

The Commercial Leading Indicator for Brokerage Activity declined 1.3 percent to an index of 101.5 in the second quarter from a downwardly revised reading of 102.8 in the first quarter, and is 13.7 percent below the 117.6 recorded in the second quarter of 2008.  The index is at the lowest level since the first quarter of 1994; NAR’s track of the commercial leading indicator dates back to 1990.

Lawrence Yun, NAR chief economist, noted the pace of decline moderated, but the leading indicator has fallen sharply and quickly from the peak, suggesting much lower business opportunities for commercial real estate practitioners engaged in leasing, sales and property management.  “The reduction in commercial real estate activity is expected at least through the first quarter of 2010.  Any meaningful recovery is not likely to occur before the second half of next year.”

The decline is driven by falling industrial production, far fewer jobs requiring office and retail space, a fall in durable goods shipments, much lower personal spending, lower retail and wholesale sales, and a negative return on commercial investment.  

“With the economic recession likely coming to an end within six months, a recovery in commercial real estate may soon follow,” Yun said.   “The office sector requires job growth to fuel the demand for additional space, the industrial sector needs a rise in production and the retail sector is tied to consumer spending.  Multifamily housing – the apartment market – often performs in reverse to trends in home sales, but can improve if there is sufficient household growth.”  

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, a separate attitudinal survey of more than 650 local market experts,² also suggests a lower level of business activity in upcoming quarters.  Most respondents are seeing sales prices that are lower than replacement costs, and 96 percent report deep rental discounts and increased tenant concessions.

The SIOR index has declined for 10 consecutive quarters and stood at 36.0 in the second quarter, compared with a level of 100 that represents a balanced marketplace.

Realtors® Commercial Alliance Committee chair Robert Toothaker said it is crucial to improve the availability of funds for commercial loans.  “Properties with positive cash flow have had trouble finding financing to roll over debt, transactions are essentially at a standstill and new development is virtually nonexistent in most areas,” he said.

“Commercial loans are mostly short term, and without ready financing even the most experienced commercial players can get into trouble.  The Fed’s recent decision to extend the TALF program for commercial mortgage backed securities beyond the end of 2009 is highly welcome because the flow of liquidity to commercial real estate will be critical for a sustainable economic recovery,” Toothaker said.  “However, unless there is a tremendous short-term recovery in the CRE markets, we expect the Fed will be revisiting the issue of another extension of the TALF program early in 2010.”

Bond yields on CMBS rose following the announcement by the Federal Reserve on August 17 that it is extending TALF lending for existing commercial securities through March 31, 2010, and for newly issued CMBS through June 30.

Looking at the broad market, commercial vacancy rates continue to rise while rents decline, according to NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK.³  The NAR forecast for four major commercial sectors analyzes quarterly data in the office, industrial, retail and multifamily markets.  Historic data were provided by Torto Wheaton Research.

Yun projects the unemployment rate to peak around 10.4 percent in the fourth quarter, then gradually improve as 2010 progresses.  “We will need sustained economic growth before many employers have enough confidence to expand the job base and create new demand for space,” he said.

The gross domestic product should contract 2.9 percent in 2009 before growing 1.5 percent next year.  Inflation, as measured by the consumer price index, is forecast to decline 0.5 percent this year before rising 2.0 percent in 2010.

Office Market

The office sector continues to suffer the most from job losses, which reduces the demand for space.  Vacancy rates will probably increase from 15.5 percent in the second quarter to 18.8 percent in the second quarter of 2010. In the Triangle market, office vacancy is substantially higher than the national average, posted at 18.49% according to Triangle Business Journal’s SPACE survey.

Annual rent in the office sector is projected to fall 14.1 percent this year and 10.0 percent in 2010 after a 0.4 percent decline last year.  In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is estimated to be a negative 75.0 million square feet in 2009 and a negative 47.2 million next year.

Industrial Market  

The contracting global economy has constricted the industrial sector.  Vacancy rates are likely to rise from 13.0 percent in the second quarter of this year to 15.0 percent in the second quarter of 2010. Triangle warehouse vacancy is trending higher than the national average as well, posted at 19.78% as of the end of the second quarter.

Annual industrial rent should fall 11.4 percent this year and another 11.7 percent in 2010, after declining 0.8 percent in 2008.  Net absorption of industrial space in 58 markets tracked is seen at a negative 300.0 million square feet this year, and a negative 112.0 million in 2010.  Because much construction in recent years was customized to meet specific industrial needs, many obsolete structures remain on the market.

Retail Market

Given a pattern of weak consumer spending, the retail vacancy rate is forecast to edge up from 11.7 percent in the second quarter to 12.9 percent in the same period of 2010.  Average retail rent is likely to fall 6.1 percent in 2009 and 4.9 percent next year; it declined 2.0 percent in 2008.  Net absorption of retail space in 53 tracked markets is expected to be a negative 25.9 million square feet this year and a negative 3.6 million in 2010. Largely due to restraint in speculative building on the part of retail developers, the Triangle market is faring better than the national average in the retail sector, with vacancy posted at 8.81% as of the end of the second quarter.

Multifamily Market

The apartment rental market – multifamily housing – is facing higher home sales by first-time buyers, but also is experiencing increased demand from families who have lost their homes.  Multifamily vacancy rates should slip from 7.4 percent in the second quarter of 2009 to 7.1 percent in the second quarter of next year.

According to the National Association of Realtors’ overall forecast for commercial real estate, this industry will continue to face negative absorption, increasing vacancies for all property types and declining rents. Commercial debt continues to pose a major threat.  Extension of TALF funds for commercial lending should provide liquidity, particularly in the CMBS market.  Investments may rise due to distressed properties and lower prices.

The metropolitan area is home to more than 1 million people after growing by more than 4 percent from 2007 to 2008. But that is slower than in previous years.

By Kristin Collins, Staff writer

As the national economy lost steam last year, the Raleigh area continued to attract residents, becoming the fastest-growing metropolitan area in the country.

According to census numbers released today, the Raleigh-Cary metropolitan area, which includes Wake, Johnston and Franklin counties, grew by 4.3 percent from July 2007 to July 2008, and is now home to close to 1.1 million people. It well outpaced its closest rival, the Austin, Texas, area, which grew by 3.8 percent.

The national average was just under 1 percent.

The Triangle has been near the top of the nation’s growth chart for more than a decade, as newcomers poured into the area to take jobs in technology, tourism and academia. The resulting building boom, and the jobs that came with it, drew hundreds of thousands of new residents.

Much changed in recent months as the economy fell into a deep recession. While the downturn took longer to arrive in North Carolina, the state’s unemployment rate of 9.7 percent is now well above the national average of 8.1 percent.

Next year’s figures may show a darker picture for the Triangle.

Even this year marks a slowdown for the area, despite its place at the top of the list. The growth rate was nearly half a point lower than the two previous years, when it was 4.7 percent.

The Durham-Chapel Hill metropolitan area, which includes Durham, Orange, Chatham and Person counties, didn’t make the Top 10, but its population continued to swell at a steady 2.5 percent, up slightly from the year before. Just fewer than 490,000 people live in that area.

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What happens when you sell an exchange property at a loss? In today’s real estate market, this is a great, and common, question. What does happen if you sell a property, that you bought in a 1031 exchange, at a loss? Let’s say, for example, that you have a buyer with cash in hand offering you $175,000 for a rental property you paid $200,000 for as part of a 1031 exchange you did three years ago?

“Do I have a capital loss of $25,000, and if so, how will that impact my tax return?” I’m currently getting a lot of calls from people with questions similar to this. Most of them are annoyed, and a few just down right mad, to discover that instead of the loss they think they have, they have a gain on the sale.

“How can that be,” you ask? The answer is that when you do a 1031 exchange your basis from the Old Property rolls over to the New. The Old basis is modified slightly if you buy-up, but not if you buy-down. For example, if your Old Property that you just sold for $200,000 has a tax basis of $125,000, and you buy a replacement property for $200,000, your tax basis in the New Property is exactly the same as the Old ($125,000) and you’ve deferred paying tax on the $75,000 gain.

On the other hand, if you buy the New Property for $190,000, you’ve bought-down (which is a taxable event in a 1031 exchange), and you’ll pay tax on the $10,000 buy-down. Your basis on the New Property is still $125,000, your deferred gain is $65,000, and you paid tax on the other $10,000.

The result is slightly different if you buy-up in an exchange. Assume, for example, that you paid $225,000 for the New Property; its basis would be $125,000 plus the buy-up of $25,000 for a new basis of $150,000, and your deferred gain remains unchanged at $75,000. This is how the IRS views it, although you arrive at exactly the same basis amount if you take the purchase price of $225,000 and back off the deferred gain of $75,000.

So, coming back to the purpose of this article, what does happen if you sell the New Property at a loss? If you sell the property for $175,000, and your basis is $125,000, you have a gain of $50,000, and it matter not that you paid $200,000 for the property. The net effect of the transaction is that you had a deferred gain of $75,000 when you did the exchange, but then lost $25,000 of value resulting in a taxable gain of $50,000 when you sold it.

A couple of final thoughts about this whole issue: first, depending upon the amount of your loan on the property, you may realize barely enough cash on the sale to pay the tax. Also, to point out the obvious, you can still do another exchange on this property and avoid paying tax on the gain.

By: Gary Gorman

CoStar recently reported on alternative tenant uses and strategies for filling vacant retail space.  Of particular interest in this article are the examples of Non-Traditional Tenants that can successfully fill these spaces and the emphasis on creativity and aggressive marketing necessary to target these alternative tenants.

GOVERNMENT USES

Examples: Department of Motor Vehicles, City Halls, Military Recruitment Centers, Libraries

Jones Lang Lasalle retail’s Bemis said there’s a “fairly large trend” of government entities opening in malls. CoStar has recorded at least 100 leases to government entities at retail centers over the last six months. “While they’re not ideal for upscale malls, they are willing to lease those difficult spaces — usually in mall wings that are close to the parking lot,” he added.

EDUCATIONAL USES:
Examples: Satellite Colleges and Universities, Massage / Beauty Schools, Daycares, Youth Private Schools

With the population of those laid-off from their jobs incessantly on the rise, many people choose to “go back to school” during this down economic period. That said, schools are a good candidate to backfill vacant junior anchor or anchor spaces at shopping centers. CoStar has recorded at least 60 university/college/vocational school leases over the last six months, as well as countless preschools/day care centers.

CHURCHES
While those interviewed cited a few examples of churches signing leases as an example of alternative retail tenants, the consensus among those we consulted was that it’s not a widespread trend. CoStar recorded at least 80 leases signed by churches at retail centers over the last six months.

MEDICAL USES
Examples: Doctor’s Offices (Vision, Dental, Chiropractic, General Practice, Pediatrics & More), Medical / Urgent Care Clinics, Outpatient / Physical Therapy, Dialysis Centers, Medical Supply, Hearing Aid Centers

Medical uses are becoming more and more common at U.S. shopping centers. According to Costar Tenant, at least 120 leases were signed in this category at retail centers over the last six months.

RECREATIONAL / FAMILY FUN USES
This category can get interesting. Bingo Halls or Bridge Clubs are not uncommon. Indoor children / family fun centers are also popular as replacement tenants — think bouncy houses, indoor mini-golf, roller skating, bowling, play structures and ball pits, arcades, laser-tag arena, birthday party centers and the like. These tenants are candidates for small spaces all the way up big box spaces. CoStar recorded at least 30 leases in this category over the last six months.

FITNESS USES
While often downplayed by brokers and store owners as “non-ideal”, fitness tenants have become a much more common fixture at shopping centers than in the past, said our experts. This category is widespread, from national and regional chains taking over vacant big box spaces, to local and franchise users opening up specialized fitness instruction spaces (dance, martial arts, personal trainers, and yoga are examples) and weight loss clinics. CoStar has recorded nearly 350 leases in this category over the last six months

SECOND-HAND / OVERSTOCK
Examples: Thrift Stores, Consignment Stores, Second-Run Cinemas, Used Furniture, Used Books/CDs/Video Games, Antiques, used sports equipment, Bakery Outlets, “Scratch-n-Dent” / Overstock item Retailers, Pawn Shops

With tightened pockets, consumers are much more willing to sell, trade, or buy their “gently-used” items; they still want to go to the movies, but are willing to view films that have been out for a while already, sit in older seats, and deal with below-par picture and sound; and being they’re on the lookout for a “great deal”, they don’t mind buying dented cans of food or “irregular” merchandise.

SEASONAL / TEMPORARY
Examples: Mall Kiosks, Holiday Goods Retailers, Annual Inventory Liquidators

With vacancy on the rise, landlords have become more willing to consider signing temporary tenants, as they look to generate at least some income while they continue to search for a permanent tenant. However, the number of potential tenants in this category continue to be limited, said our experts.

“At malls, this is called ’specialty leasing’, and often these tenants can help lead to growth as they’re converted into permanent tenants. However, the specialty leasing world has been hit with the rest of the leasing world in the scramble to find appropriate retailers for space,” said Bemis.

TRADITIONAL TENANTS

Surprisingly, there are still a few traditional tenants expanding, the deals are just fewer and farther between. Some categories continue to plug along with expansion, however.

Discounters are the standout across the board named by all interviewees. Dollar stores (this category is widespread from small shop local and franchised stores to the likes of Dollar Tree, Dollar General and Family Dollar), discount grocers (Aldi, Save-A-Lot, etc), big-box discounters (Target, Wal-Mart), wholesale clubs (Costco, BJ’s, Sam’s Club), and off-price brand retailers (TJ Maxx, Marshalls, Ross Dress for Less, etc) were identified.

Other common uses continuing to sign leases over the last six months include wireless phone/mobile device retailers (at least 350 leases in the last six months), video game retailers (at least 150 leases over the last six months), quick service restaurants (at least 800 leases signed in the last six months), drug stores, wine/liquor/cigar shops (38, 42, and 29 leases in the last six months, respectively), tax preparers, insurance (at least 150 leases over the last six months), real estate/construction (yes that’s right, at least 85 leases were signed in the last six months), hobby/craft retailers (approx. 50 leases over last six months), pet care/supplies (at least 60 leases over the last six months), salons/spas (at least 375 leases signed over the last six months), massage/ acupuncture (at least 80 leases over the last six months), financial services (at least 75 leases over the last six months), beauty supply (at least 80 leases over the last six months), copy/ship, sign makers, rental centers (at least 60 leases over the last six months), and more.

THINK OUTSIDE THE BOX

“Creativity is very important now,” stressed Bemis. As an example, Bemis cited JLL Retail’s work on the Crestwood Court mall just outside of St. Louis. “Half of this center is getting redeveloped in a few years, but in the interim, about half of the space was vacant. We approached the arts community and were successful in turning that vacant space into an artisan community,” said Bemis. At ArtSpace, local artisans rent space for studios where they can work on, display and sell their works; space for art classes, as well as live theatre is also on the premises. While ArtSpace was originally planned as a temporary use, Bemis said it’s caught on in the community and is “keeping the mall very vital and interesting” and as a result, might be considered as part of the Crestwood’s redevelopment plan.

Ralston takes an analytic approach. “I suggest exploring the detailed demographic reports available. Take a look at the NAICS codes for retail and restaurant use and scrutinize each trade and its subsets in order to identify tenants. Then cross-reference that with demographic data on the categories where people spend their money [national per capita averages in comparison to the same in a certain radius of the subject property], to identify uses that are underserved in a certain geography.”

Meanwhile Williams said that calls coming in from their “for lease” signs are “down about 40% nationally, so now it’s really important to use every avenue of advertising, as well as pounding the pavement and canvassing.”

Tuesday, Oct. 7, the Wake Forest Planning Board again continued the public hearing about a special use permit for Wake Union Place, the major shopping center planned for the former Parker-Hannifin site on Wake Union Church Road adjacent to Capital Boulevard. The plan calls for Wake Union Church Road to end at the southern edge of the center site. A new street, not named, will turn west beside the Sleep Inn, then turn to the north adjacent to the St. Ive’s subdivision and end at the northern edge of the property. In the future, plans are to extend it north to Jenkins Road. A second street, running east and west, will connect the first street to Capital Boulevard at the existing traffic signal. Twelve retail stores in a strip design and five out-parcels were shown during the two community meetings. The plan does include the two-acre site for the west side fire station between Kearney and the new unnamed street, with access only on the unnamed street. The center is a project of Wake Forest developer Jim Adams, Interface Properties of Boca Raton, Fla., and the national firm Weingarten Realty Investors.

Clearing is nearly complete and construction is underway for the second and third phases of Wake Forest Crossing shopping center on Capital Boulevard. Kohl’s department store will be the anchor for this new section. Lowes Foods is the anchor for the first phase. When complete, there will be a second entrance/exit on Stadium Drive west of the seminary cemetery.

There is also clearing and construction underway for Gateway Commons shopping center at the intersection of the N.C. 98 bypass, Jones Dairy Road and Wait Avenue. Lowes Foods and Ace Hardware are the announced tenants.

On Nov. 8, 2007, the planning board recommended approval of an increase in the height of the hotel developer Daryl Cady plans for La Scala on Star Road just north of Living Word Family Church. Plans are for a 60-foot high, four-story, 90-room hotel near the road facing a 28,800-square-foot office building. Behind those buildings will be a large ballroom/convention building.

The Wake Forest Planning Department is also reviewing the master plan for La Scala phases two through four on 85.5 acres along Star Road. It includes 239,200 square feet of office space, 375,250 square feet of retail space and a 40,000-square-foot hotel. The zoning is highway business.

Within the next few months Shuckers will have new owners and will move to Heritage Shoppes on Rogers Road. The moving date depends on construction.

Fallcreek Construction has begun construction of the building for the future Mellow Mushroom at the corner of South Main Street and Wake Drive. Several large trees on the lot will be saved.

What was Todd’s will soon be Forestville Commons, or it will be as soon as owners Williams Hicks and others can work out the building design features with Assistant Planning Director Ann Ayers. The plan is to echo or reflect the design of the Forestville Baptist Church next door. There will be a convenience store with gasoline sales plus seven retail bays in a flex building.

Officials with Franklin Academy Inc. recently held a meeting with neighbors in the Flaherty Farms subdivision and the Wake Forest Planning Department is reviewing the construction plans for the new Franklin Academy High School. The school is slated to open next July and will eventually house 500 students.

Construction for Bob Luddy’s newest private school, Thales Academy at the end of Heritage Trade Drive, is nearly completed.

The planning department has issued a development permit for a miniature golf course at The Factory.

Assistant Planning Director Ann Ayers still does not have the complete plans for a Walgreen’s drug store in the southwest corner of the N.C. 98 bypass and South Main Street (U.S. 1-A). The developer does have state Department of Transportation approval for a right-in, right-out access to the bypass.

Some of the national stores said to be looking at Wake Forest are J.C. Penney, Marshall’s and T.J. Maxx.

The Wake Forest Planning Department is reviewing building plans for an Aaron Rents Furniture at Wake Pointe Shopping Center (Wal-Mart).”

(The Wake Forest Times)

Horace Mann Takes 41,800 SF in Morrisville

Insurance Company Signs Deal at Perimeter Park

Horace Mann Insurance Services signed a lease for 41,800 square feet on the second floor of the Perimeter One office building in Morrisville, NC.

The insurance company will take occupancy in December. The five-story, 204,851-square-foot Class building delivered about a year ago at 3005 Carrington Mill Blvd. in the Perimeter Park, which is in the RTP/RDU submarket.

Smith & Nephew Leases 26,600 SF in Durham

Medical Company Coming to Imperial Center

Smith & Nephew, a London-based medical device developer, signed a 10-year lease for 26,588 square feet on the first floor of 4721 Emperor Blvd in Durham, NC. The firm will take occupancy in December 2008.

Known as Carlisle Place, the four-story office building totals a little more than 120,000 square feet. It delivered last year within the Imperial Center building park, across from the Sheraton Imperial.

Rockwell Automation Leases Office Space in Cary

Occupancy at Edinburgh Center Planned Before Year-End

Manufacturing products maker Rockwell Automation leased 15,575 square feet at 113 Edinburgh Drive in Cary, NC, with occupancy planned in December.

The 30,013-square-foot office building was built in 1984 and is part of the Edinburgh Center building campus.

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