Originally published by Tulsa World A retail center in south Tulsa has been purchased for $9.1 million, according to the locally based commercial real estate company that helped broker the sale. The Burlington-anchored center is located at 7020-7030 S. Memorial Drive, spans more than 102,000 square feet across two buildings and includes an out parcel occupied by men’s clothing retailer DXL. The property is located just west of Woodland Hills Mall, the city’s largest shopping mall. Stan Johnson Co.’s Mike Sladich, Jeff Hughes, Maggie Holmes and Michael Watson exclusively represented the seller, a Baltimore-based investor. A private 1031 exchange buyer from San Jose, California, was the buyer. A 1031 exchange allows an investor to sell one or more appreciated assets and defer the payment of capital gain taxes by acquiring one or more replacement properties. “This asset had some obstacles to overcome in the sales process, namely the oversized box for the main tenant, Burlington,” Sladich, regional director and partner in Stan Johnson Co.’s Atlanta office, said in a statement. “Burlington has communicated their intent to decrease their average store size and operate in the 25,000-30,000-square-foot range moving forward. “Because this site featured a larger floor plate commitment of 55,000 square feet, there was little to no interest from institutional investors that typically would have jumped to acquire an asset like this. However, this opened the door for private investors to purchase a well-located, multi-tenant center in the heart of south Tulsa’s retail corridor, and we were able to secure a California exchange buyer who saw the intrinsic value of the shopping center.”  

Excerpt of article originally published by GlobeSt In advance of the live ICSC Here, We, Go. 2021 networking conference in Las Vegas from Dec. 5-7, GlobeSt.com chatted with a few retail experts on what they are looking forward to from this year’s event. Here, We Go. 2021 networking conference is fast approaching and dealmakers and innovators will soon gather in person from December 5-7 in Las Vegas. Mike Sladich, regional director and partner of Stan Johnson, for one, is excited. “It will be a great opportunity to renew old relationships and build new ones in person,” Sladich tells GlobeSt.com. “Nothing compares to the efficiency of large conferences for business development and knowledge sharing.” Sandy Sigal, president and CEO of NewMark Merrill Cos., exclusively tells GlobeSt.com that he is excited to see so many friends and colleagues. “It will be great to share experiences, compare notes, and create new ICSC experiences.” He adds that “there is no substitute for in person experiences… This is how you create lasting, life changing opportunities.” Hillary Steinberg, senior advisor of MDL Group/CORFAC International, is especially looking forward to being able to meet face-to-face with property owners and asset managers in town for the convention. Additionally, Steinbern says, it will be an opportunity to hear about up and coming retailers from other parts of the country. We also caught up with Vicky Hammond, principal of Coreland Cos., who says that ICSC Las Vegas conferences are valuable events for our industry. “I’m encouraged that the organization is navigating a complicated environment to make it happen this December,” Hammon says. “Retail is a large worldwide industry that relies heavily on relationships and I’m personally looking forward to taking this first step back.”

Excerpt of article published by Commercial Property Executive Commercial real estate executives weigh in on what’s to come in the office and industrial sectors. With a new year right around the corner, Commercial Property Executive asked industry experts to forecast the business and economic factors that will determine deal flow and pricing in the office and industrial real estate sectors. Jeff Cox, Managing Partner & Sales Leader, East Region, Stan Johnson Company: Access to capital remains quite good, and we’re seeing strong buyer demand as investors rush to take advantage of the current lending environment. Our clients are also watching the return to office policies communicated by large corporate employers, the growing labor shortage, and persistent supply chain issues.  

Originally published by GlobeSt Throughout the majority of the pandemic, office investors were widely driven by a flight-to-quality, as those assets offered the most resilience amid demand uncertainty. While core and core-plus office properties are still in favor, value-add liquidity is quickly recovering as clarity surrounding rent growth and the future of office demand improve, according to new findings from JLL.  Thus far in 2021, value-add is the most sought-after profile with the share of value-add office properties in the current pipeline recovered from declines in 2020, and now recovering towards the 2017-2019 levels, JLL said. Additionally, value-add buyer pools are broadening after significant impact in 2020 and have seen the most improvement in 2021 relative to 2020. “We’re seeing investors pivot back to previously out of favor sectors like office and hospitality that can produce very attractive yields,” said Coleman Benedict, senior managing director and co-head of JLL’s National Office Practice, in prepared remarks. “As part of this rotation back to office, value-add is definitely back on investors’ radar reinforcing the investment community’s confidence in the long-term stability of the office market.” ‘Uncertainty No Longer Clouds’ Multi-Tenant Asset Sectors Ryan Roedersheimer, director in Stan Johnson Company’s Cincinnati office, specializes in nationwide multi-tenant investment property sales. He tells GlobeSt that he has seen a resurgence of interest in recent months for a variety of asset classes that had demand levels squeezed by the pandemic. “The most renewed interest is in multi-tenant assets—this includes office and retail, with an emphasis on value-add properties,” Roedersheimer said. “Uncertainty no longer completely clouds these sectors. Workers are returning to office environments and consumers are returning to stores. “For investors who’ve been chasing yield, they’re finding fewer options in the red-hot industrial market, and this dynamic is leading them to look elsewhere. With suppressed demand for multi-tenant assets in the last two years, there’s a lot of opportunity here for investors, and it will be interesting to see the story play out in 2022.” The Spector of Hybrid Work  To be sure, questions remain surrounding the impact of hybrid work on office demand. However, the majority of corporate occupiers have signaled that the office will remain the center of the work ecosystem. Hybrid work’s net impact on space usage and footprints will be relatively minor. Leasing activity supports this thesis, JLL notes, which nearly surpassed 40 million square feet in Q3 2021 for the first time since the onset of the pandemic and bringing the trailing six-month transaction total almost 40% above the same time period in 2020. Recent sales also drive home the rediscovery of value-add office’s appeal. There was the $155 million sale of Mount Eden Research Park in the Bay Area and the $56.5 million sale of CASA in Phoenix. “The amount of interest we received for Mt. Eden was truly astounding,” said Senior Managing Director Rob Hielscher, JLL Capital Markets. “A combination of value-add and life sciences drove pricing and the number of bids upward in a highly competitive process.” The CASA office sale set a new price-per-square-foot record for Phoenix’s Piestewa Peak submarket.  

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of 2420 Gulf to Bay Boulevard in Clearwater, Florida. The 8,000-square-foot multi-tenant retail center was 45 percent occupied at the time it was purchased by a local developer for $1.4 million. Jeff Enck of Stan Johnson Company represented the seller, a group of private investors based in Atlanta, Georgia. Currently leased to three tenants, the strip center also features two vacancies totaling 4,400 square feet. “While the property had excellent visibility and traffic, it was limited by use restrictions for redevelopment by the city,” said Enck, Associate Director in Stan Johnson Company’s Atlanta, Georgia office. “We received about a dozen offers and were able to close with a buyer who needed to satisfy a 1031 exchange with plans to develop it later down the road.” The property was originally built in 1963 and is situated on 0.94 acres. Current tenants operate on short-term gross leases, offering opportunities for lease-up or redevelopment. The exceptionally located property is just 20 miles west of Tampa, Florida in a densely populated residential and retail corridor. With 60,000 vehicles per day on the site’s main roadway frontage, and convenient access to U.S. Highway 19 North, the area’s main north-south artery, the center benefits from nearby retailers and shopping areas that include anchors such as Home Depot, Sam’s Club, Target, PetSmart, Costco and more.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a shopping center located at 825 Seaway Drive in Fort Pierce, Florida on Hutchinson Island. Harbour Cay is a 10,530-square-foot unanchored shopping center and is fully leased to a diverse mix of restaurant, service and professional tenants. Stan Johnson Company’s Jeff Enck and Mike Philbin represented the seller, a Jupiter, Florida-based developer. An individual investor from Lighthouse Point, Florida purchased the asset for $4.1 million reflecting a 6.08 percent cap rate. “Harbour Cay is a seven-tenant unanchored retail center on the coast of Fort Pierce, Florida,” said Enck, Associate Director in Stan Johnson Company’s Atlanta, Georgia office. “Brand new retail properties have been highly sought after this year, and while some of the tenants at the property had yet to open, we were able to find an exchange buyer to close on the property before all the tenants took occupancy.” The newly built property is situated on more than 1.50 acres at the corner of the entrance to Harbour Isle Marina and luxury condominium community. Centrally located between Cocoa Beach and West Palm Beach, Hutchinson Island is a tourist and vacation destination on Florida’s Atlantic coast. The site features direct frontage on Highway A1A in an area with limited retail. All tenants operate on triple net leases which commenced in 2021 at the time construction was completed.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale leaseback of a Pilot Travel Center located at 901 Bankhead Highway West in Birmingham, Alabama. The 9,790-square-foot convenience store sold for approximately $9.4 million reflecting a 7.0 percent cap rate. Matt Lipson and Mike Philbin of Stan Johnson Company represented the buyer, Brodersen Management Corporation based in Milwaukee, Wisconsin. The seller was Acworth, Georgia-based Mountain Express Oil Company. “This was a great deal for the buyer and tenant,” said Lipson, Associate Director in Stan Johnson Company’s Portland, Oregon office. “The tenant was purchasing a location from Pilot and rather than use traditional business financing, they found a real estate buyer to help fund the acquisition. Since you have to merge an asset purchase agreement with the purchase and sale agreement to ensure a simultaneous close, structuring a sale leaseback to fund an M&A is slightly more challenging than a typical net lease transaction. However, both parties maintained healthy communication and were experienced enough to get this across the finish line.” The property was originally built in 1995 and includes a Wendy’s quick service restaurant on-site. The 7.4-acre parcel is strategically located just north of Interstate 20 at a signalized intersection. “I like these types of transactions because the buyer is able to purchase an attractive net lease asset at a higher yield than a traditional deal, and the tenant is able to get into the property free of loan contingencies and with limited acquisition costs,” Lipson added. “Our client is also thrilled that their new tenant will have plenty of working capital that would normally be reserved for the cost of an acquisition.”  

Excerpt of article originally published by GlobeSt.com Overall, the retail market is in a very healthy space as essential retailers have been thriving. So says Mike Sladich, Regional Director and Partner of Stan Johnson. GlobeSt.com spoke with Sladich among a few other retail experts about all things retail in preparation for the upcoming RECon convention. The event will be hosted this year by ICSC on December 5-7 in Las Vegas. According to Sladich, tenants who are susceptible to e-commerce, have effectively experienced the worst-case scenario for brick-and-mortar sales. But he says, “these non-essential retailers can now better model their businesses moving forward and optimize their spaces as consumers return to stores.” Additionally, he says, “as we review financials and sales data for sale-leaseback candidates in the retail sectors perceived to be hit hardest, like casual dining restaurants, family entertainment centers and fitness centers, we’re seeing that their business in recent months has surpassed pre-COVID-19 levels.” According to Sladich, the pent-up consumer demand for these experiential retail tenants has been substantial and may be even more important moving forward as the population desires a return to routines.  

Originally published by GlobeSt The single-tenant net lease market and the national multi-tenant retail market will continue to enjoy booming growth as a combination of low interest rates and ample availability of capital make the sectors attractive for investors, according to a new analysis. “Without an increase in rates or a tightening from lenders, this environment will continue to fuel buyer demand,” says Lanie Beck, Stan Johnson Company Director of Corporate Research, Marketing & Communications. She notes that investment sales volume for shopping centers is up an “incredible” 211% year-over-year in Q3, and the overall net lease market reported more than $20 billion in activity in the last three months. Single tenant net lease sales volume hit $20.7 billion, enjoying its sixth strongest quarter on record in Q3, with office clocking in at $7 billion (up 30% from last quarter), industrial hitting $10.7 billion (up 11% from last quarter), and retail posting $3.1 billion (down 31% from last quarter). “The market is well on pace to exceed 2020’s annual sales totals, even if Q4 activity isn’t particularly strong—early predictions put 2021’s estimated annual total around $75 billion, which would make it the second strongest year in history,” Beck says. The overall single tenant net lease cap rate average fell 8 basis points this quarter to 6.01%. When it comes to STNL buyers, 39% are private buyers and US-based institutional investors account for 30% of all activity, on par with 2020 numbers. Around 35% of office buyers are US-based institutional investors, while private buyers account for 39% of industrial deals and 70% of retail sales. Meanwhile, multi-tenant retail sales volume hit $14.3 billion in the third quarter, up 39% from Q2. Sales volume so far this year has already surpassed 2020 totals, and “while it won’t be anywhere near a record-breaking year, there appears to be strong and growing momentum across the sector,” Beck says. Cap rates have stayed stagnant, though there is wide variation across regions. REITs and private buyers represent a combined 89% of MTR buyers, and the share of REIT deals has increased significantly, going from 3% in 2018 to 40% of the current buyer pool. A lack of inventory continues to plague buyers, particularly with multi-tenant retail, which has faced significant issues over the past few years by a lack of new development. And then there’s the obvious: supply chain issues are presenting challenges for retailers, and the “Great Resignation” is presenting serious labor challenges for employers of all sizes, despite an 18-month low in unemployment. Consumer confidence dropped significantly in the February through April 2020 period and “it hasn’t improved much since then,” according to Beck. However, e-commerce sales as a percentage of total retail sales remain strong and are expected to grow throughout the second half of 2021 as consumers begin holiday shopping early. In addition, “inflation remains a concern for investors and consumers, with CPI rising 5.4% during the 12 months ending in September 2021, Beck says. “Costs are expected to rise for a number of goods and services, further complicating the impact to retailers.”  

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 7020-7030 South Memorial Drive in Tulsa, Oklahoma. The Burlington-anchored center totals more than 102,000 square feet across two buildings and includes an outparcel occupied by men’s clothing retailer, DXL. Stan Johnson Company’s Mike Sladich, Jeff Hughes, Maggie Holmes and Michael Watson exclusively represented the seller, a Baltimore, Maryland-based investor. A private 1031 exchange buyer from San Jose, California purchased the asset for $9.1 million. “This asset had some obstacles to overcome in the sales process, namely the oversized box for the main tenant, Burlington,” said Sladich, Regional Director and Partner in Stan Johnson Company’s Atlanta, Georgia office. “Burlington has communicated their intent to decrease their average store size and operate in the 25,000-30,000-square-foot range moving forward. Because this site featured a larger floorplate commitment of 55,000 square feet, there was little to no interest from institutional investors that typically would have jumped to acquire an asset like this. However, this opened the door for private investors to purchase a well-located, multi-tenant center in the heart of south Tulsa’s retail corridor, and we were able to secure a California exchange buyer who saw the intrinsic value of the shopping center.” The property is located at the intersection of South Memorial Drive and East 71st Street and is adjacent to the more than 1.0-million-square-foot Woodland Hills Mall, which is Tulsa’s highest-volume regional shopping mall anchored by Dillard’s and Macy’s, among others. The retail center benefits from high visibility from more than 80,000 vehicles per day and features signalized access. New retail construction and redevelopment in the surrounding area, along with infrastructure improvements, continue to support a growing residential population with strong household demographics.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 5,013-square-foot retail center, The Forts. The fully leased, two-tenant property is located at 91-97 Parkway Drive in Fort Oglethorpe, Georgia. Ryan Roedersheimer of Stan Johnson Company represented the seller, a Tennessee-based investor. The property was acquired by an individual investor from Cumming, Georgia for $1.8 million reflecting a 6.75 percent cap rate. “This was a fun deal to work with our client on,” said Roedersheimer, Associate Director in Stan Johnson Company’s Cincinnati, Ohio office. “Our biggest challenge was both tenants had early termination clauses for under-performance, but ultimately we were able to demonstrate to the buyer the strength of both tenants who were far exceeding their sales expectations.” Built in 2018, the property is leased to America’s Best Contacts & Eyeglasses and Buff City Soap on long-term triple net leases. The center is an outparcel to a shopping center anchored by Walmart Supercenter, Hobby Lobby, Ross Dress For Less and other national retailers. Located only five minutes south of Chattanooga, Tennessee and approximately 90 miles north of Atlanta, Georgia, the property has convenient access to Interstate 75 and is served by a growing population base.

  Market data, charts & graphs of current and historical trends across 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: "c1356763-5ba7-47b2-8ff1-6a3dbb18bc75" });   CRE markets show growth and momentum, but industries are impacted by a number of challenges Following the close of the third quarter, both the single-tenant net lease market as well as the multi-tenant retail sector are reporting strong year-over-year growth. Investment sales volume for shopping centers is up an incredible 211 percent from third quarter 2020, while the overall net lease market reported in excess of $20 billion of activity in the last three months, making it the sixth strongest quarter on record. Despite the positive momentum, the market continues to see some lasting effects from the pandemic. Here are a few of the top trends we see impacting the market for the remainder of 2021 and into 2022: Low Interest Rates & Strong Buyer Demand | Rates are low and capital is available, and this has been an attractive combination for investors. Without an increase in rates or a tightening from lenders, this environment will continue to fuel buyer demand. Lack of Inventory | Unfortunately for buyers, there continues to be a lack of available inventory across all product types. Multi-tenant retail, for example, has been impacted in recent years by a lack of new development, while industrial investors are having an increasingly difficult time finding yield. Supply Chain Issues & Labor Shortages | As we approach the holiday shopping season, many retailers are encouraging consumers to start early. Expected delivery delays combined with supply shortages may present challenges for retailers. Additionally, in what some are calling “The Great Resignation,” a high number of employees are leaving the workforce or switching jobs, and employers across all industries are now facing labor shortages. Inflation | Inflation remains a concern for investors and consumers, with CPI rising 5.4 percent during the 12 months ending in September 2021. Costs are expected to rise for a number of goods and services, further complicating the impact to retailers.