Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a multi-tenant retail center located at 9484 Highway 5 in Douglasville, Georgia. The west Atlanta strip center totaled 6,975 square feet and was fully leased to three tenants: Starbucks, Zales and Five Guys. All tenants operate on long-term net leases. Brian Lane, Emery Shane and Billy Benedict of Stan Johnson Company marketed the property on behalf of the seller, a real estate developer partnership of CONNOLLY, Coro Realty and Wilson Development Group. The asset was acquired by a private investor from New Jersey for approximately $5.9 million.  “This three-tenant center sits on arguably the best corner in an area with more than 4.0 million square feet of surrounding retail,” said Lane, Associate Director in Stan Johnson Company’s Alpharetta, Georgia office. “This is evidenced by each of the tenants signing long-term corporate leases, with two of the tenants relocating from within the market to be in this specific location.”  The property was built in 2021 and is situated on 0.94 acres at the signalized corner of Highway 5 and Douglas Boulevard. Just 20 minutes west of Atlanta, the center is an outparcel to Arbor Square, which is anchored by HomeGoods and Burlington. Other area tenants include Kroger, Home Depot, Lowe’s and At Home.  “We were able to generate multiple offers and achieve our seller’s goals on price as well as timing for when they requested to close,” Lane added. 

Sale leaseback transactions have gained popularity in recent years as owner occupants look to extract the value of their real estate in order to free up capital. But beyond the motivations that drive traditional sale leasebacks, many business owners have found success leveraging this transaction type to fund M&A activity. Franchisees are the primary actors exploring these creative avenues, and while a sale leaseback could be used to fund M&A needs across nearly all asset classes, the most frequent property types involved are quick service restaurants, convenience stores and car washes. These property types are often owned and operated by franchisees with growing portfolios of multiple assets, and M&A activity is commonplace. One Seller, Two Buyers and a Broker So, how does this actually work? In an M&A sale leaseback, you typically have four players: the franchisee seller of the business and assets, the franchisee buyer of the business and future tenant of all properties involved in the sale leaseback, a real estate investor who buys the real estate assets, and a broker that facilitates the transaction.  "Sale leaseback transactions are a common vehicle for owner occupants to extract value from their real estate, but this creative solution is gaining popularity with franchisees as they expand through mergers and acquisitions." To start the process, the franchisee seller and franchisee buyer identify each other and enter into an agreement for the operations and real estate. A broker enters the conversation early on as well. They need to evaluate the sale leaseback of the real estate component and this analysis often influences the terms of the agreement between franchisees. Additionally, the broker helps to identify a real estate investor. At the close of the transaction, two events occur: one franchisee purchases the business assets and assumes the franchise agreements and third-party leases, and at the same time, concurrent with closing, the franchisee buyer executes a long-term triple net lease with the real estate investor.  In this type of transaction, proceeds from the sale of the real estate are transferred from the investor to the franchisee seller, while proceeds from the sale of the business come from the franchisee buyer. The new investor now has guaranteed income coming from their tenant in the form of a long-term lease. That lease typically features attractive terms including a triple net lease structure – making the tenant responsible for all taxes, insurance and maintenance costs – along with regular rent increases and lease extension options.    A Creative Solution to Fund Growth This creative funding solution may appeal to many candidates, including those interested in limiting their exposure to real estate and minimizing or helping to bridge the typical 25 to 30 percent cash equity need required to complete a transaction. A company may view the cash flow of their business as more valuable than the static return of owning the real estate. They may be in a rapid expansion mode and unable to tie themselves to multiple loans or the contingencies that come with them. This solution also works well for emerging franchisees that aren’t sitting on a surplus of cash or those that don’t have an established lending relationship necessary to complete larger transactions. For this type of candidate, there are real estate investors that have extensive experience helping smaller franchisees grow into larger companies. They will not only buy the first round of real estate but will subsequently help fund new acquisitions, work with the franchisee on upcoming capital expenditures and open up more opportunities for acquisitions than the franchisee would have if they were simply relying on their franchisor and brokers.  Low Inventory, High Demand Creates Ideal Environment As we approach mid-year 2022, market conditions are ideal for these transactions, and franchisees considering this strategy are encouraged to act. Inventory is low and demand for sale leasebacks continues to be incredibly high, but today’s market uncertainties could shift the environment quickly. Inflation, rising interest rates, continued cap rate compression especially in the net lease retail sector, supply chain issues, labor shortages – these factors all have the ability to influence market dynamics, and franchisees considering this creative funding vehicle are urged to watch the market.     To download a copy of this report, please provide the following information: hbspt.forms.create({ region: "na1", portalId: "7279330", formId: "f465878d-b7b5-4a74-ace8-549108cb50cf" });

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of Kimmell Crossing, a 44,962-square-foot shopping center located at 636-648 Kimmell Road in Vincennes, Indiana. Shadow-anchored by Walmart, the center was fully leased at the time of sale to 10 tenants. Stan Johnson Company’s Ryan Roedersheimer represented the seller, Regency Properties, a developer based in Indiana. A North Carolina-based private buyer, DPPM Management, acquired the asset for approximately $4.6 million. Both parties were involved in 1031 exchanges.  “Once again, we were able to help all sides achieve their goals,” said Roedersheimer, Director in Stan Johnson Company’s Cincinnati, Ohio office. “The seller had a capital call deadline and use for the proceeds, while the purchaser wanted to expand his portfolio with a stabilized asset that provided a little more yield to it.”  The property is situated on 4.24 acres off the exit ramp of U.S. Highway 41 and boasts excellent visibility and access via multiple points of ingress/egress, including a signalized intersection. Tenants include Dollar Tree, Maurices, T-Mobile, CATO and other national retailers.  “Not only did both sides achieve their goals, but the seller is now managing the property for the out-of-state buyer,” Roedersheimer added. “They have developed a great relationship throughout this process. As is true with each project I oversee, it is always the hope that parties come together in a healthy and meaningful way. That’s exactly what we accomplished with this transaction.” 

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a multi-tenant strip center located at 160 West Town Square Way in Oak Creek, Wisconsin. The Shoppes at Drexel totals 10,351 square feet and is fully leased to five tenants. Stan Johnson Company’s Ronnie Givargis represented the seller, a New York-based individual investor. The property was acquired for $5.9 million by an investor group out of Cedar Rapids, Iowa. Both parties were involved in 1031 exchanges.  “At 5.94 percent, this was one of the lowest cap rates for a strip center in Wisconsin,” said Givargis, Senior Director in Stan Johnson Company’s Newport Beach, California office. “Through our targeted marketing efforts, we generated multiple offers and ultimately selected a buyer familiar with the local area.”  The strip center was built in 2017 and is situated on 1.45 acres in a southern suburb of Milwaukee. Tenants include Mod Pizza, Men’s Hair House, Five Guys, Crumbl Cookies and Potbelly. The property is an outparcel to Drexel Town Square, the city’s premier mixed-use development comprised of 85 acres of retail, medical, residential and government operations. The site benefits from a dense surrounding population of more than 140,000 residents earning an average annual household income exceeding $83,000 within a five-mile radius. 

Originally published by GlobeSt The Great Recession, the e-commerce revolution and a global pandemic constituted an unprecedented 1-2-3 punch for retail. The good news is that the much-beleaguered commercial real estate sector has bounced back, and investors are taking notice. That’s according to Margaret Caldwell, Stan Johnson Company’s managing director & partner, and Jeff Cox, managing partner of the CRE brokerage and advisory firm and sales leader of the east region, who note the outlook, especially for multi-tenant retail’s evolution, is looking up.  “The top trend is that in 2021 retail took off again,” said Caldwell. “Prior to and during COVID-19, retail had been quite challenged. We were seeing only a handful of bidders show up for an asset, but now there’s a significant number of investors bidding on retail properties. Additionally, pricing has returned to levels last seen in 2007, and in some cases, cap rates have been even lower than that last benchmark.”  New investors are entering the retail market, perhaps rolling out of the multifamily or industrial sectors in pursuit of more opportunity. And institutional investors, including REITs, are active again. Caldwell reports that “huge volumes of capital are being raised and deployed for multi-tenant retail product.”  “After what could probably be described as a deep chilling effect during the pandemic, we’re experiencing significantly more leasing and investment sales activity,” Cox added. “Rents are also increasing as vacancies are being absorbed with little to no retail development.”  The retail sector, and specifically multi-tenant open air shopping centers, have come a long way since the Great Recession, after which “malls started to slowly fall out of favor,” according to Caldwell. Grocery anchored open-air properties have remained the bright spot in the post-downturn days.  “Following the Great Recession, e-commerce was very much still in its infancy,” Cox said. “And we’ve all seen that its impact on the sector was significant in terms of shopping patterns, preferences and logistics.”  Retail started to improve around 2011-2012, once challenged assets were sold off, and then settled into a new groove a couple of years later until 2020 when COVID-19 hit. After several quarters of lackluster investment activity during the height of the pandemic, multi-tenant retail has come back to life, and “there’s been a ton of growth in store sales,” said Caldwell. “We’ve seen some centers where 2021 sales increased 20% to 30% on average – this is because consumers want to shop in stores.”  COVID-19 provided shoppers the perfect excuse to buy a significant number of items online, but post-pandemic, that reliance is waning. “We are beginning to see online sales stabilize and, in some cases, decline,” agreed Cox. “This has ultimately resulted in investors understanding the resilience of brick-and-mortar retail.”  Cox added, “moving out of the pandemic, we’ve been encouraged that in-store shopping has rebounded. A lot of this can be attributed to the fact that retailers continue to evolve, attracting shoppers to new and different shopping venues and experiences.”  The outlook of multi-tenant retail is bright with more and more capital getting into the investment game. Retailers are continuing to be innovative, and they’re looking for ways to incorporate experiential elements into their formats. In today’s post-pandemic environment, amenities and experiences are important to consumers, and today’s expectations will help shape the future of retail. 

Excerpt of article originally published by GlobeSt Capital poured into the booming single-tenant net lease sector in the first quarter, with sales volume up 30% year-over-year.   According to recent research from Stan Johnson Company, the STNL market reported activity at around $21.7 billion. Over the last three months, the sector saw “negligible” movement in the overall cap rate, which moved down 3 bps to 5.84%.  “Following a record-setting 2021 with unprecedented levels of investment sales activity in the final quarter of the year, there was no expectation that the single-tenant net lease market was positioned for back-to-back quarters of such volume,” Stan Johnson Company analysts note in a report on the Q1 data. “Instead, predictions called for just enough carried momentum to position the market well enough to have a respectable follow-up year. Despite current headwinds—with inflation raging and interest rates rising—the market delivered on those predictions for the most part.”  The firm says “it is highly unlikely and perhaps even impossible” that this year will see activity surpassing 2021 levels, but “we had a healthy start.”   The industrial sector drove most investment activity and accounted for more than half of the quarter’s overall total.  Office also logged $6.9 billion in total, thanks largely to Google’s purchase of a single-asset Manhattan office building last year.  “Even without the Google transaction, the single-tenant office sector would have come close to meeting its historic average, indicating investor confidence has rebounded from the height of the pandemic when the future of office use was much more uncertain,” the report states.  Single-tenant retail had the most significant decline quarter, down 66% from Q4 numbers but more in line with demand levels Stan Johnson Company analysts say they’ve seen in recent years. Meanwhile, multi-tenant retail logged $14 billion in sales in the first quarter amid rising investor demand.  Private investors led activity and accounted for 36% of the buyer pool, followed by US-based institutional investors and REITs, at 25% and 23% respectively. 

Originally published by GlobeSt Asking prices across CRE sectors ticked up in March for those properties listed on Crexi’s database, with the average asking price per square foot rising 2.72% month-over-month.  Cap rates compressed by 0.14% over the same period across asset classes, while occupancy rates picked up a 1% gain.  New inventory also increased by 19.7% in March over February numbers, while office and retail assets showed “promising gains” in prices and tenant occupancy.  “Among the asset types most heavily impacted by the pandemic, office and retail saw promising signs of prosperity in March,” Crexi analysts wrote in a report dissecting the March data. Office assets increased by 6% month-over-month, with occupancy increasing 2% in the same period. And “shopping and other retail subcategories are back in full swing, with owners confident enough in their properties’ values to begin listing them on the market,” with retail assets posting a 1.9% increase in average asking prices and hitting 90% average occupancy for new listings.  Crexi also noted a 27% gain in shopping center inventory in March over February numbers. Asher Wenig, Stan Johnson Company Senior Director & Partner, previously told GlobeSt that shopping centers “are making a great comeback,” with increased demand from institutional and private investors as retailers continue to announce expansion plans and consumers flock back to physical retail.  Multifamily also saw a slight pricing correction on Crexi’s database last month, with the average asking price dropping 4.24%.  The firm observed a large number of smaller multifamily parcels hit the market with less available square footage. But despite the pricing drops, sellers seem as confident in their multifamily property values as ever, with a noticeable reduction in unpriced listings,” Crexi notes.  Overall asking lease rates on Crexi also showed their third consecutive month of decline, down 1.89% from February for all asset types. But special purpose properties like RV parks, self storage and historic buildings saw a nearly 7% gain month-over-month.  Houston also remained the most-searched metro on Crexi by both prospective buyers and tenants, followed by Dallas and Miami.  Los Angeles showed the most gains in search volume last month, up 13.1% over February numbers. 

  Market data, charts & graphs: current and historical trends for single-tenant office, industrial and retail properties, as well as multi-tenant retail Overall market trends Market summary & analysis Economic data points hbspt.forms.create({ region: "na1", portalId: "7279330", formId: "d5cea127-0985-4756-8591-d452dc67de3a" });   Following a record-setting 2021 with unprecedented levels of investment sales activity in the final quarter of the year, there was no expectation that the single-tenant net lease market was positioned for back-to-back quarters of such volume. Instead, predictions called for just enough carried momentum to position the market well enough to have a respectable follow­up year. Despite current headwinds - with inflation raging and interest rates rising - the market delivered on those predictions for the most part. It is highly unlikely and perhaps even impossible that we'll see 2022's activity reach or surpass the nearly $103 billion reported last year, but we had a healthy start. Overall, the net lease market reported approximately $21.7 billion in sales volume during first quarter 2022. While it's a decrease of about 50 percent quarter-to-quarter, this was a very strong showing of above average quarterly volume which points to continued buyer demand. By sector, the industrial net lease market continued to drive the bulk of investment activity, contributing $11.4 billion, or more than half of the quarter's overall total. The office sector, powered by Google's high-profile purchase of a single-asset Manhattan office building for a reported $1.9 billion, logged nearly $6.9 billion in total. Even without the Google transaction, the single-tenant office sector would have come close to meeting its historic average, indicating investor confidence has rebounded from the height of the pandemic when the future of office use was much more uncertain. The single-tenant retail sector experienced the most significant quarter-to-quarter decline in activity, with just $3.3 billion in sales. Down approximately 66 percent from fourth quarter 2021, activity in the retail sector fell more in line with demand levels we've seen in recent years. The multi-tenant retail sector is coming off a strong year as well, although 2021 wasn't record-setting Still, with nearly $14.0 billion in sales reported for first quarter 2022, investor demand has grown substantially since the pandemic began and the last 12 months of activity has been incredibly encouraging for the sector.  

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of Northcrest Village located at 3044 Old Denton Road in Carrollton, Texas. The 136,061-square-foot shopping center is anchored by ALDI and Ace Hardware and was approximately 85 percent leased at the time of sale. Margaret Caldwell, Patrick Kelley and Gill Warner of Stan Johnson Company represented the seller, an Oklahoma-based developer. The 1031 exchange buyer was an individual investor based in Texas. “Northcrest was highly sought after by investors because of its location, strong credit anchors and its potential upside,” said Caldwell, Managing Director and Partner in Stan Johnson Company’s Atlanta, Georgia office.  Located in the northern Dallas suburbs, the shopping center features 31 tenants across three buildings. The attractive tenant mix reflects grocery, restaurant, hard goods, soft goods and service providers including national retailers like Subway, O’Reilly Auto Parts, The UPS Store, Little Caesars and State Farm. At the time of sale, there were four contiguous in-line suites available for lease along with one junior anchor space adjacent to Ace Hardware. “The bidding process was highly competitive with double-digit offers showing the continued demand for grocery-anchored multi-tenant retail properties,” added Kelley, Associate Director. “In addition to its credit anchors and upside, Northcrest Village boasts a coveted market in Dallas-Fort Worth.”  

While the state of Ohio may not be top of mind as a major real estate investment center, there are many reasons why investors should keep an eye on net lease assets and opportunities across the Buckeye State, and specifically within its capital, Columbus.  With 11.7 million residents and 2.3 percent growth during the last decade, Ohio is the nation’s seventh most populous state. Ohio has attracted new residents with its low cost of living that is approximately ten percent lower than the national average and housing prices that are comparatively low as well. The state boasts good schools and prestigious universities, as well as a thriving economy that also ranks seventh in the nation.  Business is Booming When it comes to business, the state is ranked fifth for Fortune 500 companies and is home to 25 firms, with more than half located in Columbus alone. Columbus’s economy is hugely diverse, offering employment opportunities across major industries such as technology, finance, healthcare and education. Among the companies that operate their headquarters or have significant employee counts in the area are Nationwide, J.P. Morgan Chase, Honda, Big Lots, Wendy’s and Huntington Bank, among others. "Columbus is ripe with opportunity for net lease and commercial real estate investors…new construction is robust, and the existing supply of second-generation investment properties is also abundant." In recent months, a startup company, Staq Pharma Inc., announced plans to build a $50 million facility in Columbus and create 300 new jobs. Intel also recently announced plans to open two new factories in a rural area east of Columbus with an initial investment of more than $20 billion and a long-term investment that could exceed $100 billion. This is the single largest commitment by a private-sector firm ever announced in Ohio, and a total of 10,000 jobs – both permanent and construction-related – are expected to be created in the short-term. The economic impact of an announcement like this will be substantial, and the area will benefit from additional population growth in the coming years – not only from Intel, but from all the supporting suppliers and businesses this mega-site is sure to attract.  With this growth comes the need for housing, and residential developers as well as multifamily investors will see new opportunities generated. Retail will soon follow as an influx of residents will need access to grocery stores, restaurants, shops and entertainment. Net lease investors will be quick to pursue newly built banks, car washes, dollar stores and drugstores, self-storage facilities, drive-thru restaurants and strip centers that will undoubtedly pop up overnight to serve the fast-growing community. Additional industrial development is sure to happen too, as again, an operation of this size will draw suppliers and manufacturing partners.  Current Growth Areas & Opportunities  As the market waits for these future developments to become a reality, Columbus has plenty of activity already occurring. The bulk of new retail construction is happening in suburban areas including New Albany to the northeast, Dublin and Hilliard to the northwest, and in town along the Interstate 70 and State Route 315 corridors near Grandview Heights. Just west of downtown, two significant projects are in various forms of development. The Peninsula includes office, residential, retail and hospitality space, and the project has already secured several large office tenants including Deloitte and Insight Global. The second development is Gravity, a mixed-use project featuring residential, Class A office space, eclectic retailers and outdoor entertainment and gathering spots. The immediate area along West Broad Street is primed for redevelopment, so as incoming residents spur growth, investors will be able to acquire newly built net lease retail, multi-tenant retail and additional multifamily properties that crop up.  Industrial development has been robust in Columbus as well, with 9.0 million square feet of warehouse space built in the past year and another 15.0 million under construction. Much of the activity is occurring within the Rickenbacker Global Logistics Park. Last summer, a newly built 500,000-square-foot industrial facility leased to Synnex Corporation sold for $31.5 million. The property is strategically located adjacent to Rickenbacker Airport, which is the 27th largest cargo airport in the U.S.  Another corridor of growth and development exists in and around The Ohio State University – one of the city’s largest economic drivers. Located minutes north of downtown, OSU is one of the nation’s largest public universities. It features a huge medical complex and an enrollment count of over 67,000 students. The year-round student and faculty population, not to mention the 24,000 people employed by OSU’s medical center, drive a significant need for multifamily housing, retail and healthcare. And while the university itself may not provide traditional commercial real estate investment opportunities, continued expansion by Ohio State is driving local growth. The areas along High Street and Lane Avenue have seen a resurgence lately, and the CVS Pharmacy at this pivotal intersection traded recently for $7.5 million. The Olentangy River corridor too is seeing new development to support the growing medical complex, as the Wexner Medical Center announced additional expansion in the form of an inpatient hospital slated to open in 2026. Driven by an aging baby boomer generation, healthcare in and around the Columbus area will continue to expand and offer investment opportunities beyond the walls of Ohio State.  A Good Bet for Future Investment Columbus is ripe with opportunity for net lease and commercial real estate investors. New construction is robust, and the existing supply of second-generation investment properties is also abundant. Continued cap rate compression and competition, especially from out of state buyers, maintains a seller’s market for single-tenant net lease investors, and the frothy market is ideal for developers who can sell quickly and move on to the next project. Overall market dynamics may be impacted in the coming months by continued inflation and rising interest rates, but the Columbus market is one area investors can continue to bet on.  hbspt.forms.create({ region: "na1", portalId: "7279330", formId: "ce591be0-0223-48f6-a228-f3aafe246f29" });

Originally published by GlobeSt BioMed Realty, a unit of Blackstone, is acquiring a sprawling life-sciences and office campus in Boulder, Colo.—the latest sign that the city at the base of the Rocky Mountains is emerging as a hub for the biotechnology and pharmaceutical industries.  BioMed Realty acquired Flatiron Park, a one-million-square-foot, 22-building life science and office campus that is currently 90% leased to a mix of industry-leading technology and life science firms.   The campus traded for $600 million, according to the Wall Street Journal, and BioMed Realty has plans to invest another $200 million to in part convert some of the offices to life science space.   Always a stable real estate sector, life science has exploded since the start of the pandemic, drawing investors new to the space.   “Now that the cap rates on multifamily and industrial have fallen below many investors’ required yield, alternative property types such as life science move to the front burner,” Joseph Rubin, consultant, Eisner Advisory Group, tells GlobeSt.com.   An Opportunity to Expand Flatiron Park provides BioMed with the opportunity to expand its portfolio beyond its existing core markets and invest in emerging markets in this sector. “Boulder has always been a market to watch, driven by highly educated talent, robust capital flow, an existing base of life science and tech pioneers and great quality of life,” Mike Ruhl, vice president of leasing at BioMed Realty, said in prepared remarks.   Indeed, the deal is a testament not only to the burgeoning life science market but also the growing number of alternative cities where such investments are being made—such as Philadelphia, Atlanta and now Boulder.  The seller was a joint venture of Crescent Real Estate, Goldman Sachs Asset Management’s Real Estate Business and Lionstone Investments. JLL Capital Markets represented the seller in this transaction.  BioMed Realty owns and operates more than 13.7 million square feet of high-quality lab, technology and office real estate across seven leading markets in the United States and the United Kingdom.  Coordinated Public-Private Research Accelerating Growth  Joe Euphrat, managing principal, GreenRock, tells GlobeSt.com that continued growth in new products and technology, coupled with continued capital flow, has allowed for the life science industry growth of the last decade.  “The thrust of coordinated research between public and private institutions during the pandemic in the last two years has only accelerated this growth in products and technologies, including mRNA technology,” Euphrat said.  “More than $140 billion of combined capital from private equity and public National Institutes of Health (NIH) sources has poured into life sciences in the last two years. From a real estate perspective, there is continued significant strength in life sciences real estate.  “Healthcare, including life sciences, does not take a break whether the economy is hot or cold. Healthcare is always needed and life sciences, and the discoveries therein, serve as a key part of the healthcare delivery foundation.  Atlanta’s Net Rents Half of Boston’s   Kyle Smith, Vice President of Life Sciences at Stream Realty Partners’ Atlanta office, tells GlobeSt that many cities such as Denver and Atlanta offer access to talent, a high quality of life, and a pro-business environment at significant savings relative to primary life science markets in the Northeast and on the West Coast.  “For example, stabilized net rents for Atlanta are nearly half those of Boston, and the discount is even steeper when you consider a tenant’s total occupancy costs, which include real estate taxes and other operating expenses,” Smith said.   “This is a huge value proposition for companies and investors. However, like established life science markets around the US, Atlanta’s existing supply of wet lab space is 100% occupied, with tenants waiting on sidelines for space to be delivered. Emerging markets are witnessing conversions of all kinds to meet the demand of life science tenants who are relatively price inelastic.”  A Burgeoning Subset of the Larger Healthcare Industry   Jeff Cox, Stan Johnson Company Managing Partner, tells GlobeSt.com that the life science sector has been a quiet but powerful force during the past two decades.  “It is a burgeoning subset of the larger healthcare industry, and many of the investors we work with appear eager to get their foot in the door as life science companies play increasingly critical roles in the economy and our everyday lives,” Cox said.   “The Cambridge submarket of Boston is home to the largest national concentration of life science real estate, but with a scarcity of space and soaring rents, landlords in other markets—especially in the Northeast—are looking for opportunities to attract owners and occupiers in the sector.”  Cox said that one of the current trends in the space involves the conversion of traditional office properties to bio and lab facilities, and metro areas including Philadelphia, Washington, D.C., Raleigh-Durham and San Francisco, among others, are seeing their inventories of this product type grow.  “In the coming years, we expect to see demand for life science real estate increase from tenants and investors as well, as genomics, biotechnology, pharmaceutical companies and others continue to expand,” Cox said.  Florida Another Market to Watch  For investors looking to break into the booming life sciences asset class, location is king—at least for now.  JP Bacariza with Ryan Companies, tells GlobeSt.com to watch Florida because it has all the ingredients that are needed to become the next big player in life sciences.  “It’s been the big winner from the population boom and domestic migration patterns that have only accelerated since the pandemic, and we’re already seeing major companies begin to follow the crowd by planning expansions in markets like Tampa and Orlando,” Bacariza said.  “Major research universities such as the University of Florida, UCF, Florida Polytechnic University, and USF have invested heavily in life sciences and are producing the caliber of top-tier talent that companies want to be in close proximity to as they look to leverage the workforce of the future.”  One example of the life sciences boom in Florida is a project Ryan Companies is developing, designing, and building for International Flavors & Fragrances at Florida Polytechnic University in Lakeland.   When considering where to build, Bacariza said three key factors any company will look for are a strong infrastructure network to support specialized systems, flexibility to adapt the space to specific R&D needs and close proximity to multiple colleges and universities that emphasize life sciences.  “Florida has it all and is well-positioned to capitalize on the next wave of development,” Bacariza said. 

Summary of future growth plans for the top 100 retailers, as selected by brand recognition, expansion rate and frequency of investment sale transactions Average cap rate and sale price information for the most commonly traded retailers Credit rating summary with parent company information Average square footage ranges and store counts for each tenant hbspt.forms.create({ region: "na1", portalId: "7279330", formId: "f238c774-f61d-4812-9adc-e25c9f621770" });