NETAR CMLS Blog
RPR is excited to announce practitioners now have the option to include traffic counts in RPR Commercial Property and Trade Area Reports. The data will display actual historical counts as well as Kalibrate’s projected counts, which are based on the last published traffic count, local area trend data and up-to-date demographic information.
Commercial real estate pros can use the new data to:
• Identify and understand traffic patterns and historical trends.
• Analyze and forecast potential customer traffic to detect high demand opportunities.
• Evaluate locations for retail facilities, restaurants, real estate developments, cell phone towers, billboard advertising and more.
Read the full report at http://blog.narrpr.com/commercial/traffic-counts-added-to-rpr-commercial-reports/
That's a stark contrast to an economy that's booming. Consumer confidence is high. The region is at full employment. Wages are up – not by a lot but they're up. Retail sales and sales tax collections are doing quite well. In fact, Kingsport-Bristol has the best sales tax collection market share performance in Northeast Tennessee.
Attribute some of this contrast to the fact that commercial real estate data is a lagging economic indicator – especially the local commercial real estate market. It doesn't lend itself to the short-term analysis that residential real estate affords. While residential real estate and the housing market frequently leads the rest of the economy out of bad times local commercial real estate often trails the residential market by a year to a year-and-a-half.
By The Numbers
According to the Market Edge's mid-year commercial building permit report, there were 216 new permits issued in the Tri-Cities region during the first six months of this year compared to 301 last year. NE Tenn. counties included in the report include: Carter, Greene, Hawkins, Sullivan, Washington. Scott and Washington counties in SW Virginia are also included. New permit totals have slowly declined every year since 2011. The dollar number attached to this year's permits was $72,865,805, down 37% last year. From an East Tennessee perspective, the Tri-Cities in the only area with a mid-year decline in permits and permit value.
There were 92 transactions of CMLS listings between January and the end of June compared to 112 last year. Listings originated during the same period totaled 183, up from 156 last year. While a CMLS listing receives the broadest exposure, some commercial listings are not included on other platforms. CMLS listings can be searched at https://www.netarcmls.us/ . The site also has a featured listing section, a directory of commercial members and a capsule report of recent deals.
At the end of August CMLS had listings for 18.7 million square feet of commercial space for sale; 724,213 square feet of commercial space for lease and 1,025 acres of land in the three-county Johnson City MSA.
Listings for the four-county Kingsport-Bristol MSA included 1.3 million square feet of commercial space for sale; 548,670 square feet for lease and 1,179 acres of land.
Although it didn't come at a time to affect conditions in the mid-year report news about the potential redevelopment of part of the old Bristol Mall to a casino has fired up interest in that market, and the region's, commercial real estate and economic evolution.
See the full report on the Commercial Real Estate page at the NETAR Web Site at https://netar.us/mid-year-commercial-real-estate-update
While it will not equip an agent with the needed tools to practice commercial real estate, it will explain the business and introduce many of the resources needed to pursue a commercial transaction or a career in commercial real estate.
This is an ideal introductory course for those who are newly licensed and/or residential agents who want to learn more about commercial real estate. Register for the course at https://netar.us/calendar/day/2018-07-25
A musical chairs situation for Kingsport apartments: What the Johnson City and Bristol markets look likeKingsport will likely be the softest apartment market in the Tri-Cities for a while due to the volume of new product that has and is coming online in that community. It has created a sort of a "musical chairs situation" between some new complexes that have comparable rents to the 30 and 40-year old complexes. At the same time the apartment supply and demand in the Johnson City and Bristol areas is more balanced. That was one of the takeaways from Universal Development & Construction Principal Shane Abraham's market briefing at a Northeast Tennessee Association of Realtors® (NETAR) Commercial Multiple Listing Service (CMLS) meeting this week.
Abraham outlines the apartment market landscape.
Abraham is a regional leader in the multifamily development and property management industry and his insights offer a valuable inside look at both the history and future of that industry in the Tri-Cities region. His comments were made for an audience of almost 40 NETAR commercial and residential Realtors®, local bank and credit union lenders and representatives from other real estate professions. It was one of the events that are part of a CMLS project funded by a National Association of Realtors® (NAR) grant to further community knowledge about commercial real estate and its role in the economy of Northeast Tennessee.
Kingsport has seen an influx of apartment product in the past year, and there are another 700 new units that will be hitting the market in the next 24-26 months. Abraham said if there is little new population "most of the stabilization will occur from attrition." There are people coming out of leases in Kingsport's 30 and 40-year old complexes who are moving over to the new apartments that have comparable rents. "It's sort of like musical chairs." How this affects the current occupancy levels of the B and C products - how the new A class products fill up and who feels the pain remains to be seen. "It will be interesting to watch."
The Bristol Market seems balanced, but recent lease-ups were slower than 2014-2015 lease-ups. That market also saw very little if any population growth, he said.
The Johnson City absorptions have definitely slowed over the last 10 years with well over 2,000 new units built. Most properties still seem to be meeting national average occupancies, but there may still be pockets for small product success. Little new market supply will hopefully allow time for the market to tighten somewhat.
The full report can be found on the NETAR Web site at: