Commercial Investment Real Estate November/December 2018 | Page 43

{WEST}
{SOUTHEAST}
Oregon Approves
Timber High-Rises
Oregon is the first U.S. state to allow timber structures to rise
higher than six stories without having to receive special permis-
sion. In August, the state approved an addendum to its building
code that allows three new timber building classifications: up to
18 stories and 270 feet high; up to 12 stories and 189 feet high;
and up to nine stories and 85 feet high.
{MIDWEST}
Chicago Condo
Reconversions Rising
Source: Avison Young
Miami Retail Grows
2012
2018
General Retail Asking Rates $28 psf $35 psf
Mall Space Asking Rates $60 psf
$45 psf
Shopping Center Sale Price $250 psf $450 psf
Mall Cap Rates
5.9%
Higher rents, a shortage of land for new devel-
opment, and high construction costs spurred
condo deconversions in Chicago. In the 24
months ending July 15, 20 deconversions
occurred in the city, with buildings ranging from
10 to 300 units. Most are buildings constructed
from 1960 through the 1980s. Demand for
apartments has increased as well; since 2006,
72,000 units have been added to the area.
4.9%
Source: MMG Equity Partners
{ MID-AT L A NTIC }
I-81 Corridor Heats Up
The Shenandoah Valley/I-81 corridor industrial market is
emerging as a solid player in the region at the end of 2Q2018.
Overall Vacancy Rate: 5.5%
Down from 6.4 percent in 2017 and
12.1 percent in 2009.
New Development: 2.4 million sf
Includes six buildings under construction
at the end of 2Q2018.
Overall Net Absorption: 2.1 million sf
Market’s growth rate of 2.3 percent midyear
was the fifth highest in the U.S.
Asking Rents: $4.26 psf
Decade high level, up from
$4.12 psf in 2017.
Source: Colliers International
CCIM.COM
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