• Price: $950
• Bedrooms: 2
• Bathrooms: 1
• Half Baths: 1

Driving Directions: From interstate 75 take the 39th Avenue exit going east. Turn left on NW 24th Boulevard, then turn left again on NW 45th Avenue. Follow 45th Avenue and turn left again on Black Forest Way. Condo is in 2nd building on left.

Utilities:

• Square Footage:1,476
• Cooling: Central AC
• Heating: Central Heat
• Water: City Water
• Sewage: City Sewage
• Gas:None
• Electric: GRU
• Telephone: Bellsouth

Home Information:

• Bedrooms: 2
• Baths: 1
• Half Baths: 1
• Style: Condo
• Parking: Two assigned spaces per unit
• Porch: Screened-in Porch
• Flooring: Tile, Carpet

Home Amenities:

• Garbage Disposal
• Dishwasher
• Refrigerator
• New Ceramic Cooktop Stove
• Washer/Dryer Included
• Microwave
• New energy star water heater
• Programmable thermostat

Schools:

• Elementary: C.W. Norton
• Middle: Westwood Middle
• High School: Gainesville High

• Price: $2,000
• Deposit: $2,000
• Bedrooms: 3
• Bathrooms: 2
• Half-bathrooms: 1
• Year Built: 2004

Driving Directions: From interstate 75 take the University Avenue exit East approximately 6 miles. Go past Main Street and turn left onto NE 4th Street. Unit is on left just past NE 1st Avenue.

Construction Information:
Stories: 3+
Floor Type: Slab Floor
Road: Paved Road
Exterior: Brick
Roof: Shingles
Wall Types: Dry Wall
Year Built: 2004
Total Sq. Ft: 1,957

Utilities:

• Cooling: Central AC
• Heating: Central Heat
• Water: City Water
• Sewage: City Sewage
• Gas: None
• Electric: GRU
• Telephone: Bellsouth

Home Information:

• Style: Traditional
• Parking: Private one-car garage
• Porch:Porch
• Flooring: Tile, Carpet, Hardwood

Home Amenities:

• Garbage Disposal
• Dishwasher
• Refrigerator
• Electric Range
• Washer/Dryer Included

Schools:

• Elementary: Williams Elementary
• Middle:  Lincoln Middle
• High School:  Eastside High

Outlook sobers in Alachua office & retail markets.

Following a wonderful surprise last quarter with the leasing of 70,588sf of office space (18 listings), the 1Q 2011 findings do not bring the same cheery news, adding back 61,670sf and 19 listings.

Eighteen of the 19 listings added back to the market are under 4,000sf. Despite the reloading, pricing has remained mostly flat the last two quarters with an overall weighted average gross lease rate of $13.36 psf. Repeating my thoughts from last quarter regarding rates, I believe we may be at stabilization as owners are beginning to realize that lowering rates is only shooting themselves in the foot. When not enough demand exists, lowering prices below a certain threshold does not guarantee a lease will occur.

In addition, owners are realizing that decreasing rents too much makes it very difficult to increase rents back to a more profitable range in the future. It is advised to landlords that if you are forced to lease at a much lower rate in order to meet your obligations, consider a shorter initial term and don’t offer option renewal periods at the same low rents.

As an optimist, I try to look for the golden nugget in every pile of dirt. Though the office markets continue to struggle with supply issues, low rents, and long vacant periods, there is something brokers and landlords can do. Keep in mind, prospects are looking for quality among the vast quantity.

For landlords, use this slow time to accomplish those “honey-do” items you’ve been thinking about doing like resealing and re-striping your parking lots, installing flowers at the entrance, upgrading your old bathrooms, pressure cleaning, upgrading your property’s signage capability, getting rid of that cleaner that never mops or waxes the floors, etc. If you aren’t keeping your properties in tip-top show condition at all times, I promise you other landlords are. It’s like your mother used to tell you, you only get one chance to make a good first impression, and prospects have way too many other property choices to waste time at properties whose owners seem disinterested.

For brokers, I see an opportunity in tenant representation; after all they have the upper hand right now. This may be one of the few times during a real estate cycle that tenant reps could outperform landlord reps in the market. With all the inventory, tenant rep is more work but chances are if you get them to remain loyal to you, you’ll end up doing a deal.

For landlord reps, this may be a good time to look over all your listings and begin “leaning up” by figuring out which landlords are sticking to the same tune of overprice and wait and which landlords are willing to make changes to lure a tenant. In down markets, it’s easy to get 120 listings that won’t sell, the successful landlord reps will be strategic in who they represent so their limited time is better spent on properties that have the best chance to sell or lease.

In terms of overall office outlook, I see small increases in inventory through 2011, mirroring sluggish jobs reports. I envision stabilized rents and look for tenants continuing to leave unkempt properties for properties with better locales, amenities, grounds, and aesthetics.

On the retail side, inventory got pretty ugly. After having “stabilized” our inventory totals since 3Q 2010, the number of listings sky-rocketed from 148 last quarter to 180 listings this quarter. The vast majority of the inventory increases came from spaces under 4,000sf while all the spaces over 4,000sf sat with little activity and only four spaces added. The overall weighted average days on market decreased to 458 days because the new inventory brought the averages down.

Rates remained mostly flat since last quarter; with spaces under 4,000sf averaging $15.98 psf NNN and spaces over 4,000sf had a median rate of $11.23 psf NNN. Last quarter, I mentioned 2011 is a big year for lease expirations since 2006 was a very strong year in commercial leasing. Those five-year leases are maturing. It appears landlords are losing the battle to keep tenants in place on the retail side but it isn’t ALL the landlord’s fault. The issue is tenants are just closing shop. Inventory has increased, signifying that retailers and restaurants are closing shop once their leases end.

For those landlords lucky enough to negotiate a retail renewal, now is not the time to get aggressive. I’m certainly not saying to give in to your tenants every want, I am saying to consider the vast number of choices your tenant has and the willingness of those competing landlords to spend tenant improvement dollars and offer lower rates. A big win in 2011 is getting to keep your tenants at the same rate, a loss is not even getting to negotiate.

I still hold to my forecast of last quarter that retail will not see positive changes until the 4Q 2011 or 1Q 2012. This follows the large wave of lease maturities from 2006. The year 2007 was also strong in commercial leasing, however the five-year lease maturities in 2012 will hopefully come at a time when the unemployment rate has dipped and the consumer is spending more money. Consumer spending will keep tenants in place when renewal time comes around.

Yes, the current outlook is not making anyone celebrate, but I prefer to focus on a brighter horizon. At least I think we can see it from where we now stand.

Office summary

The total number of office listings increased from 201 in the 4Q 2010 to 220 for the 1Q 2011, a 9.45% addition. Compared to 1Q 2010’s 174 listings, this is a 26.44% increase.

The total area of office space available is 708,543sf, an increase of 9.53% (additional 61,670sf), over last quarter. This was a 24.99% increase over 1Q 2010’s total area. This includes executive suites.

The overall weighted average gross lease rate for all office space during the 1Q 2011 was $13.36 psf with a median of $12.81 psf. This lease rate has decreased by only 0.55% since 4Q 2010 but has decreased 9.19% since 1Q 2010’s rate of $14.71 psf. Continuing with 1Q 2011 stats, the lowest gross lease rate for office space was $5.80 psf and the highest gross lease rate for office space was $25.50 psf.

The overall weighted average number of days on the market for all office space during 1Q 2011 was 394 days (a median of 334 days), an increase of 3.63% over the preceding quarter and an increase of 18.92% since 1Q 2010.

Office space with area under 4,000sf is on the market a weighted average of 334 days compared with 600 days for office space over 4,000sf. There are 171 listings under 4,000sf (11.76% increase over last quarter) compared with 49 listings over 4,000sf (2.08% increase over last quarter).

The largest number of office listings was for the 1,001-2,000sf range at 71 active office listings, an increase of 5.97% over last quarter. This range’s average gross lease rate is $13.09 psf with a median of $13.00 psf, a decrease of only 0.42% from last quarter.

The second largest number of office listings was for the 501-1,000sf range, having 39 active office listings in the market. The average lease rate for this range decreased by only 0.37% to an average gross lease rate of $12.13 psf. Also, the 2,001-3,000sf range had a total of 35 listings in the market, marking the largest percentage increase in listings at 34.62% above the prior quarter. The average gross lease rate is $14.44 psf, which decreased 1.29% from last quarter.

Over 50% of the office inventory is under 2,000sf, over 65% is under 3,000sf, and over 77% is under 4,000sf.

The number of negatively absorbed office spaces within each square footage range is as follows: Executive Suites added five listings, 501-1,000sf added three listings, 1,001-2,000sf added four listings, 2,001-3,000sf added nine listings, 3,001-4,000sf added two listings, 5,001-6,000sf added two listings, and 7,001-10,00sf added two listings. The only range that saw an absorption of space was the 4,001-5,000sf range having absorbed three listings.

Executive suites (less than 500sf) continue to be difficult to keep leased, as these are typically month to month tenants with no long term commitment. With 46 total listings, the average lease rate is $22.01 psf and stays on the market an average of 436 days.

Overall, the number of listings either increased or stayed the same in 11 of the 12 square footage ranges. Lease rates declined in 10 of the 12 square footage ranges and days on the market increased in about half of the square footage ranges.

Retail summary

The total number of retail listings increased from 148 in the 4Q 2010 to a whopping 180 for the 1Q 2011, a 21.62% addition. Compared to 1Q 2010’s 125 listings, this is a 44.00% increase.

The total area of retail space available is 704,180sf, an increase of 10.21% over last quarter. Compared to 1Q 2010’s 477,937sf, this is a 47.34% increase.

The overall weighted average net lease rate for all retail space in Alachua County during 1Q 2011 was $15.54 psf with a median of $15.32 psf. This lease rate has increased by 0.94% since the 4th quarter and has increased by 2.64% since 1Q 2010’s rate of $15.14 psf. The lowest net lease rate for retail space was $3.92 psf, and the highest net lease rate for retail was $40.00 psf.

The overall weighted average number of days on the market for all retail space during 1Q 2011 was 458 days (a median of 425 days), or about 15 months, a decrease of 9.35% over the last quarter and an increase of 48.22% since 1Q 2010.

Every category either stayed the same or increased in the number of listings. The largest percentage increase was in the 1-1,000 square footage range, having increased from 23 to 31 listings.

The largest number of retail listings was for the 1,001-2,000sf range, having a total of 67 active retail listings in the market, an increase of 21.82% from the prior quarter. This range’s average net lease rate was $16.31 psf (median of $16.00 psf), an increase of 1.89% from last quarter.

The second largest number of retail listings was for the 1-1,000sf range (31 listings) and the third largest number of retail listings was the 2,001-3,000sf range (26 listings). These two groups had an average net lease rate of $16.07 psf and $16.10 psf respectively.

Over 54% of the retail inventory is under 2,000sf, over 68% is under 3,000sf, and almost 79% is under 4,000sf.

You will notice that retail spaces larger than 25,001sf are sitting on the market an average of 1,023 days, or nearly three years! Other poor performing square foot ranges are the 1-1,000sf range and the 7,001-10,000sf range, with an average days on the market of 579 and 715 days respectively.

While the overall weighted median lease rate for all retail spaces under 4,000sf is $16.42 psf, a clear line is drawn in the sand for spaces over 4,000sf, where the lease rate decreases by 31.60% to $11.23 psf. Median numbers were used because larger spaces had fewer listings to produce accurate results.

The number of available retail spaces over 4,000sf has increased by only 4 listings to 38 total. Those spaces less than 4,000sf has increased by 28 listings to a total of 142, a 24.56% increase above last quarter.

There are still 7 listings above 25,000sf, still none between 15,001-25,000sf, and still just three listings that are in the 10,001-15,000sf range.

Overall, in all 11 square footage ranges, the number of listings either stayed the same or increased. Lease rates either declined or stayed the same in seven of the 11 square footage ranges and days on the market increased in six of the 11 square footage ranges.

In real estate, warm weather means just one thing–leasing season. Multifamily marketing expert Lisa Trosien, CEO of ApartmentExpert.com in Chicago, shares tips for energizing any property. (Source: Realtor.mag)

1. Consider a new color scheme for seasonal plantings. Don’t use the same color palette each year or each season, or it will lose impact. Change out plants as soon as they look droopy.
2. Green up your marketing. Shift from a printed brochure to digital or print on demand. Offer hyperlinks to floor plans and market data. Explore digital signatures on leases if local laws allow. Put pictures and maps on an iPad instead of an easel.
3. Use an interior “re-decorator” to spruce up lobbies, club houses, or leasing offices. A cousin of home stagers, re-decorators rearrange and accessorize what you have, rather than buying new.
4. Go uniform. Spiff up your leasing or maintenance staff with new “career apparel.” Try a new style or color to give staff a boost after the winter.
5. Clean up the unnoticed. While you’re cleaning the clubhouse, windows, lobby, and other common areas, don’t forget the dumpsters, mail room, and your own onsite leasing offices. Dirt anywhere makes the whole property look bad.
6. Do something different. If there’s one thing to do for spring, says Trosien, it’s something no one else in your market is doing. Review the competition, and try something to stand out from the pack.

The National Association of Realtors (NAR) recently asked Beau to share some of his winning strategies on marketing his commercial real estate listings. Here’s the feature published April 2011.

1. Change the name. If you have a building or office park that’s been languishing, a new name can buy a fresh start. For example, Beery just changed Tower Medical Center to Tower Office Center to attract non-medical tenants. (Cost: $500 for new signage.)
2. Remove space square footage from all on-site marketing signs. That way more prospects will call to find out the size. Once you’ve made contact, you can direct them to appropriately sized space elsewhere in your inventory. (No cost.)
3. Move your signage around the property every three or four months. Signs become invisible after a while. A new placement or color attracts attention. (Cost: $150.)
4. Create video tours of vacant space and amenities and post them on YouTube to attract out-of-state tenants. Send a link as a reminder for prospects. (Cost: $100 for digital video camera.)
5. Contact current tenants every six months and ask for referrals. (No cost, although you might want to give a gift card if a referral signs a lease.)
6. Start a local group on LinkedIn. As manager of the group, you can easily post property updates and announcements. (No cost.)

Every time it rains, thousands of pounds of pet waste wash down storm drains and into streams, rivers and lakes. If not disposed of properly, pet waste flows directly into nearby streams and creeks without being treated at waste water treatment facilities. A recent U.S. Geological Survey study of streams and creeks in the Kansas City region showed that bacteria associated with pet waste is the source of approximately 25% of the bacteria in samples collected from local waterways. When pet waste is disposed of improperly, water quality isn’t the only thing that suffers — your health may be at risk, too. Adults working in their gardens, children playing outside and family pets are the most at risk for infection from some of the bacteria and parasites found in pet waste.

Dog waste is a type of what’s called non-point source pollution, which occurs when rain and melting snow pick up pollutants on the ground and deposit them into rivers, lakes, wetlands, coastal waters and groundwater. Genetic studies of the water pollution from fecal waste in this country have found that roughly 20 percent of it comes from dogs. This water pollution promotes the growth of aquatic weeds and algae, which then limit light penetration and reduce oxygen levels — eventually, it creates a deadly environment for fish and other aquatic life, and widespread fish kills can be one result.

Because of this a number of jurisdictions, and even apartment complexes, have established “pooper scooper” laws requiring pet owners to clean up after their pets. But more than just what happens to our water and the environment it feeds, it’s about having etiquette. Have you ever thrown a piece of paper from your car window only to have your mom or dad say, “What if everyone threw garbage out the window? The entire world would be one giant heap of trash!” Even if your city or community doesn’t, make sure you pick up after Fido whenever you take him outside. It’s such a simple and courteous thing to do, and such an easy way to make a difference for people, pets and aquatic life. And if your community doesn’t have a rule, perhaps make it a suggestion. I’ve seen areas that actually have special waste receptacles placed in open areas complete with little baggies to assist with picking up what Fido leaves behind. Chances are if one person sees you do it, that person might do it and so on. Call it “Paying it Forward!”

Allen Tappe is the owner and president of The Tappe Group. He is a professional speaker, trainer, and coach whose mission is to equip people with the skills and knowledge necessary to achieve the success they choose to pursue. I’ve had the pleasure of attending a couple of his seminars. He teaches about what he calls “The New Normal.” And I’ve seen this new normal become an integral part of many industries suffering in today’s economy. Our country, our well-being, has undergone a dramatic change with the recent recession. If you watch any of the alphabet news stations, the question asked of many a professional economist is when will we start to see a turnaround? The truth is, no one really knows; and in reality will anyone be satisfied with the answer? What I want to know is what are we judging this ‘turnaround’ on? Where do we consider the 180 degree mark to be? Are we expecting our country to return to the economic condition we had before the recession?

We have to establish within ourselves a new expectation of where we want to be; hence a New Normal. When things are bad, people often choose one of two routes: 1) head down, full of despair and loathing; or 2) hoping that the worst has happened and that better days are right around the corner. “Staying fixed upon the past is a failed strategy for the future,” Allen Tappe says.

I feel like most people have chosen route #1, and implementing a different attitude is much needed in the real estate industry. The ones making deals today are the ones finding new ways to negotiate and close deals. So in today’s market, a broker or agent has to actually work for a living. Today’s tenants have researched their options. They are more educated about market rates, and they know landlords are willing to make big concessions in order to close a deal. What was once thought of as a ‘small deal’ is now a ‘Big Deal’ today. In fact, most would agree that ANY deal is a BIG deal today. There are still an enormous number of troubles out there — including a lack of available credit and the dire need to restructure many loans made during the go-go days of a few years ago. If people continue to take one of the two routes mentioned above, they will never see an improvement in the economy or their careers. It’s all in how things are perceived. We will not see a ‘perceived’ improvement until we change our definition of “Normal” and accept that it is not what it was 5-6 years ago.

AMJ Inc. of Gainesville, representing the seller Gainesville Ford, Inc., has successfully sold the Gainesville Ford and Mitsubishi property located at 3333 N. Main Street in Gainesville, Florida, located along “Auto Row”.  The buyer, Prestige Lincoln-Mercury’s Randy Parks, intends to build a new Ford store on the property.

Beau Beery’s Comments:  Working with the Ford folks and their head broker, Niraj Sarda of CB Richard Ellis, was a pleasure.  Having entertained a host of buyers for the property ranging from investors to churches to auto body shops, I am pleased that title is being transferred to a solid operator in the auto sales industry.  This commercial real estate sale will breathe life to the 12.7 acre property and the surrounding corridor.

The big story this quarter is the surprising 70,588 SF office absorption dispersed over 18 listings having been removed from availability. A total of 8 listings were added in the 1,001-2,000 SF range but this wasn’t enough to bring down the fury of office leasing activity that occurred for the last three months. The decrease was led by 3 large leases in the 7,001-10,000 SF range with more than 25,000 SF being leased and the 3,001-4,000 SF range with more than 17,500 SF being leased. I remember thinking during the last 90 days that the number of showings and executed leases in our own portfolio had jumped a good amount so it is nice to see this echoed in the macro market of our County. Since this is the first quarter that positive absorption has occurred, we certainly can’t say we’re out of the woods yet or that this will be a trend. That being said, optimism rings in my head because this activity happened during what is historically the slowest period of the year for sales due to the Holidays. This square footage absorption marks a 9.84% decrease and the 9 net absorbed listings marks a 4.29% drop in the number of listings on thee market. The vast majority of this activity occurred in the 501-1,000 and 2,001-3,000 SF ranges, accounting for 66.67% of the absorbed spaces.

There is a cost to this new activity and it comes in the form of reduced lease rates. Office lease rates declined another 2.05% from last quarter and 11.70% from a year ago. On a positive note, the 2.05% decline was the smallest decline in the last two quarters. Currently at $13.43/SF gross, one wonders how much lower they can go. My gut tells me that we are very close to stabilization in pricing. There is still a trend that tenants are seeking nicer Class A properties and leaving the second and third rate locations and buildings lacking modernization and upkeep. Office employment, the main driver of office demand, has improved slightly in Gainesville, perhaps lending to the improved office absorption.

To summarize, though office leasing activity has picked up, time on the market hast increased to 380 days per listing on average. Landlords need to consider the tremendous carrying costs of a vacancy in this market vs. what a renewing tenant may ask of you in the way of lease rates. Though a tenant may ask for below market rents to stay, Landlords need to calculate a NPV analysis on the cost of releasing the space at 380 days, some opportunity cost rate, build out costs for the next tenant, and the fact that every user is represented by a broker these days seeking commissions. In terms of outlook in the office market, I’m not convinced we’ll have the same surprising rate of positive absorption because many of the 5 year leases done in 2006 are coming due in 2011, however I do expect rates to flatten out.

On the retail side, it has been uneventful to say the least. Little new product has come to market and few spaces have been leased. The rates did dip by an average of 1.93%, however that was largely due to the 1,001-2,000 SF category with 55 listings skewing the overall average. In fact, rates stayed virtually flat for nearly every other category. Because activity was stagnant, the average days on the market shot up 35% to over 16 months. The good news is that stabilization occurred for the first time in the 3rd quarter of 2010. The bad news is that stagnation for too long will eventually begin to hurt. Many of the five year retail leases executed in the hay day of 2006 are now coming up for renewal in 2011, and landlord and tenants are working hard to keep each other in place. Given how long it takes to do a deal these days and the length of time and money needed to lease the space, paying tenant improvement costs to the next retailer, and paying commissions to tenant reps, it is strongly advisable that landlords do what they can, within reason, to hold on to their otherwise financially solid occupants.

I don’t forecast dramatically different news in the retail leasing world until 4th quarter 2011 or 1st quarter 2012. There are several national store closures scheduled for early 2011, including big box retailers. The hope is that Gainesville will be spared. Also, stagnant unemployment still looms as the number one driver of consumer spending in retail stores. Retailers don’t expand if consumer income isn’t solid.

Next quarter be on the lookout for a very innovative and complex analysis of our office and retail markets using “gas gauges” to show where Alachua County stands as a whole in each segment as it relates to lease rates, time on the market, and occupancy.

MANATEE COUNTY, Fla. – Jan. 21, 2011 – Economist Hank Fishkind told about 400 Manatee County leaders that Florida’s recovery is in its early stages even if it doesn’t seem like it to some people.

Calling it the “worst recession, probably, since the Great Depression, and at least the worst since 1975,” Fishkind said, “This is the recovery – right now,” Fishkind said. “The momentum is growing.”

Fishkind spoke at an “Economic Forecast Breakfast” sponsored by Whitney Bank and the Manatee Economic Development Council. As evidence of the ongoing recovery, Fishkind pointed to recent improvements, including:

• Job growth in the tourism and convention industries
• Job growth in education
• Strong retails sales at the close of 2010
• Consumer belief that it’s safe to spend money
• $500 billion boost from a 2 percent cut in payroll taxes

Fishkind also expects retirees to return to Florida’s warm shores, but “there is a discernible lag between recovery and population growth,” Fishkind said. “It takes time for people to realize there is a recovery.”

For a true turnaround, however – the kind that everyone sees and appreciates – Fishkind says the state must wait until 2012.

Source: Michael Pollick, Sarasota Herald Tribune, Jan. 20, 2011

Beau Beery Comments: I think Henry Fishkind, a UF Real Estate Advisory Board member, hit it on the head when he stated that “It takes time for people to realize there is a recovery.” I believe the recovery has begun but at a slower pace that anyone wants to see. Keep in mind that most people are used to a fast paced society and to have to wait another 2-3 years for an entire economy to recover from one of the worst financial meltdowns in the history of the world, is a tall order. We at AMJ are looking at 2013 to be the year where normalcy returns to the market, barring any major occurrences such as a massive loss of jobs, a major terrorist attack, or multiple consecutive unintelligent political decisions in Washington.

I liken our markets to a person gaining 300 pounds over the course of several years because the food (the market) was so good. You can’t be surprised if it takes you 3-5 years to lose the bad weight. For some, even when you lose the weight there will be several body parts that will never look the same due to the stretching of the skin and abuse that was inflicted upon it the preceding several years. The good news is you’ll be healthy again and will live to spend more time with your family. So far our markets are losing that bad fat by exercising, eating right, and getting enough sleep. As long as we stay this course day in and day out, we’ll slowly reach our goal weight (a healthy market).