NETAR CMLS Blog
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:
Apartment development has skyrocketed throughout the Tri-Cites TN and SW VA region for the past several years with thousands of new apartment homes entering the market. How much longer will this trend continue and is it here to stay to replace the once coveted single-family homes and condo. The recession of 2008 has caused new shifts and dynamic is the residential market.
Our guest speaker for this CMLS Membership meeting is Shane Abraham, President of UDC, Universal Development & Construction, developer and property manager of over 1,600 apartment units since 2008 with an additional 700 units in the pipeline for the Asheville and Sevierville markets.
Our meeting sponsor is Eastman Credit Union. No RSVP required. Plan to attend and network with some of your 70 CMLS co-members. A good place to start some new business.
Look forward to seeing you then...
Jerry Petzoldt, 2018 CMLS Chair
A brand new three-hour CE course free to NETAR members and funded by a NETAR Commercial Multiple Listing Service (CMLS) grant is scheduled for Oct. 24 at NETAR's office in Gray.
Waddell Wright, CCIM, CPM of Nashville, is the instructor.
The class is structured to give those who attend all the tools they need to understand the entire Commercial Purchase and Sale Agreement. It will also strengthen their practical and negotiation skills by covering elements, formation, and performance on a commercial contract. It also capsules covers common mistakes, contract management, dispute resolutions, inspection periods and best practices from contract to close.
The first class in this series of free workshops for NETAR members had 65 attendees. The class begins at 8:30 a.m. and ends at noon. Please confirm your reservation ASAP to Pamela at NETAR office (423-477-0040)
Waddell has worked with leaders, asset management, and insurance companies while managing, renovating and selling their commercial distressed properties. He has provided over 1,000 asset valuations to lenders and has sold/purchased investment real estate more than $500 million. He is a licensed broker in Tennessee and Florida.