Insight
2015 ANNUAL REPORT | TEAMBECK.COM
BUILDING UP DOWNTOWN PLUS REGIONAL SPOTLIGHT A look at the Gulf Coast’s major players
CATCHING UP WITH THE CURVE Technology’s growing role in CRE marketing
BACK PAGE PROUST Keeping up with CRC’s Paul Kang 1
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What’s Inside BECK PARTNERS BUSINESS MAGAZINE |
INSIGHT 2016
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Regional Spotlight
Catching Up with the Curve
Back Page Proust
Discover what’s new with the major players on the Emerald Coast.
Drones, CRM platforms and syndication: Technological strides the commercial real estate industry is making in the Southeast.
We sit down with Continental Realty Corporation’s Paul Kang to discuss life, business and long-distance relationships.
By Jared Hatcher; David Valletto, SIOR; John Fifer, CCIM; David Monroe
By Lisa Daiss
Interview by Justin Beck, CCIM, CPM
4 Year in Review
20 Progress Report
25 Service Spotlight
29 While We Were Out
By Justin Beck, CCIM, CPM
Reflecting on a booming year for America’s First Settlement.
Property Management: what it takes to build, maintain and enhance an asset’s value.
Chattanooga’s Warehouse Row breathes new life into Tennessee’s fourth largest city.
26 Giving Back
32 Enjoying a Bull Run
A look back at a memorable and productive 2015.
10 Today’s Workplace
By Brice Pelfrey, CPM
How the evolving function of office buildings affects employee happiness.
How investing in the community has become an important part of Beck Partners’ corporate culture.
Data compiled by Stacy Taylor, CCIM
12 Building Up Downtown
Introducing One51Main, Pensacola’s most exciting new downtown address.
22 Industrial Update
By Kristine Rushing, CIC, CPIA
By Justin Beck, CCIM, CPM
A look at how the multifamily sector exceeded expectations in 2015.
By David Monroe
Pensacola’s industrial market saw a major decrease in both sales and leasing in 2015.
Data compiled by Debbie Anglin, SIOR
23 Education Corner Leasing and the importance of teamwork.
By David Valletto, SIOR
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28 Understanding Insurance Changing insurance from a four-letter word to something you can believe in again.
By Reid Rushing, CPIA, AAI
34 Land Lowdown Escambia and Santa Rosa Counties bounce back from the Great Recession.
Data compiled by Scott Jennings INSIGHT | BECK PARTNERS
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Year in Review
By Justin Beck, CCIM, CPM
Welcome to the inaugural issue of Insight. We are extremely proud to bring this unique offering to our clients, friends and anyone interested in commercial development in the Southeast. We hope you’ll find there is nothing out there that provides the depth and breadth of information for our region like our publication.
Insight EXECUTIVE EDITOR
Justin Beck, CCIM, CPM EDITORIAL EDITOR
Lisa Daiss
MANAGING EDITOR
Beck Partners has undergone several milestones in the past year and we are thrilled to share our exciting developments and growth.
Lisa Daiss
ART DIRECTOR
To kick off 2015, we officially became Beck Partners in January. The rebranding was a result of the merger between Beck Property Company––a commercial real estate firm established by my father, Gregg Beck, in 1981––and McGraw Insurance, a proven veteran insurance producer led by Reid Rushing, with deep roots in the community and a family history of success in the insurance industry. October brought us all under one roof, as our combined divisions became one family at our new address: One51Main. Our new building is a mixed-use project at the entrance to the Community Maritime Park in Pensacola. The first of its kind in Downtown, the three story building is home to retail shops at the street level, our offices on the second floor, and three high-end lofts on level three. We are just about settled and couldn’t be more excited for a fresh start in an awesome downtown location.
Lisa Daiss
CONTRIBUTING WRITERS
Debbie Anglin, SIOR; Justin Beck, CCIM, CPM; Lisa Daiss; John Fifer, CCIM; Jared Hatcher; Scott Jennings; David Monroe; Brice Pelfrey, CPM; Kristine Rushing, CIC, CPIA; Reid Rushing, CPIA, AAI; Stacy Taylor, CCIM; David Valletto, SIOR This magazine is a product of Beck Partners
We also continued to create new jobs and add great people to our team. In January 2015, we opened an office in Tallahassee to better serve our clients across the Southeast. We also extended our offices west, opening a location in Mobile. Personnel-wise, we added a Transaction Coordinator, Marketing Manager and Corporate Accountant to our team. Finally, 2015 marks our best performing year ever, as revenues exceeded all previous years for each of our divisions. We hope Insight will serve as a reference for market information along the Gulf Coast, and also as a guide for making sound decisions for your business. For many of you, the excitement and growth that is occurring in our region isn’t news. For those who aren’t as familiar with our market, we hope this publication will inspire you to reach out to our professionals and find out more, and hopefully find time to visit in-person to see the great opportunities that exist from Mobile to Pensacola, to Destin and Tallahassee. Finally, and maybe most importantly, I hope this publication continues to tell the story of how our company is different from so many others, not just because of the services we offer, but because of our culture and our people. Thanks for reading, and cheers to another great year!
Justin Beck President
To order hard copies, learn about advertising options or subscribe to Insight, contact Lisa Daiss at ldaiss@teambeck.com.
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Insight is published once annually by Evergreen Printing, with offices at 318 Beverly Pkwy Pensacola, FL 32505 2015 (C) Evergreen Printing Inc. All rights reserved. PRINTED IN USA.
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CONGRATULATIONS TO OUR TEAM Beck Partners was honored with the New Development of the Year Award by NAIOP Northwest Florida for their latest Downtown Pensacola project and home of their new offices: One51Main. Read more about Pensacola’s newest flagship development on page 12.
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Regional Spotlight TALLAHASSEE By: Jared Hatcher Consistent with urban markets across the country, the in-town Tallahassee commercial real estate market is very active at the start of 2016. Three of the most unique real estate projects include: Magnolia Grove, the construction of the Ballard Building and a redevelopment project at The Centre of Tallahassee. Magnolia Grove: Developed by Ponte Vedra-based developer The Ferber Company, Magnolia Grove is an exciting new nine acre retail and hospitality project completed in 2015. Located in the heart of Tallahassee at the intersection of Magnolia Drive and Park Avenue, Magnolia Grove boasts over 35,000 SF of new retail along with a Home2Suites by Hilton. Some of the retailers include Starbucks, Blaze Pizza, Smash Burger, Which Wich and Stanton Optical, just to name a few. The Ballard Building: For the
PENSACOLA By: David Valletto, SIOR The overall development of the Pensacola area continues to be active and steady. Since Hurricane Ivan in 2004, Escambia County has been unwavering in its recovery and rebuilding from devastation, but the last few years have seen an exceptional explosion—Pensacola is leading the way on the Gulf Coast with multiple areas of growth and redevelopment. Downtown Pensacola is experiencing a movement which has never been seen. Multiple structures, from office buildings, hotels, apartments, retail, bars, restaurants to a minor league baseball stadium (home of the Blue Wahoos) have recently been built or are in the process of future construction. In 2015, Palafox St., Downtown Pensacola’s main drag, saw numerous new retail shops open. Cordova Mall continues to be Pensacola’s retail leader, with the development of BJ’s Brewhouse, Lonestar Steak6
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THE GULF’S MAJOR PLAYERS
first time since 2009, a new downtown commercial office building is scheduled to break ground this spring with the delivery of 110,000 SF in office space scheduled for mid to late 2017. Mr. Brian Ballard of Ballard Partners is a well-known lobbyist whose organization will occupy two floors of the six story building. Complete with an outdoor deck on level four and a planned upscale restaurant on the ground level, the Ballard Building will overlook the chain of parks at the corner of Monroe Street and Park Avenue and will command some of the highest office rental rates in Tallahassee.
The Centre of Tallahassee: After years of decline, the Tallahassee Mall was purchased by Alabama developer Blackwater Resources and is currently undergoing a multi-million dollar renovation. Approximately 150,000 SF of the existing mall is being demolished (still leaving in excess of 600,000 SF of the existing mall) and will be replaced with an open air concert venue and urban park, plus two brick-paved crossing streets with outdoor retail shopping and a seasonal ice skating rink. In addition to retaining existing tenants Belk, AMC 20 Theaters, Barnes & Noble, Victoria’s Secret and Bath & Body Works, The Centre of Tallahassee has announced the addition of the iconic Dreamland BBQ and an Urban Food Market modeled after the famed NYC Eataly.
house and Saloon, and Jared the Galleria of Jewelry. University Town Plaza has also been redeveloped to compliment the retail sector, and in 2015, Beck Partners represented WP Glimcher in leasing over 30,000 SF of retail space at the development.
multiple subdivisions on the books to meet rising populations. Santa Rosa schools continue to be a leading factor in the county’s growth, boasting one of the best school districts in Florida. Santa Rosa County is also promoting retail development along Highways 90 and 98 in Gulf Breeze, in addition to actively pursuing industrial businesses for the commerce parks. Military, tourism, higher education and the medical industry are leaders of employment in both counties. However, Navy Federal Credit Union has become the dominant new force in the market, providing what will be more than 10,000 above-average paying jobs to the Pensacola area. The Northwest Florida Market is experiencing a growth period that does not have a foreseeable end. There are still business and real estate opportunities, room to grow, market capital, adequate infrastructure (Pensacola Bay Bridge to be replaced beginning in 2017), affordable costs of living and available workforce to sustain the area for years to come.
The Westside, which is home to Perdido Key, should see substantial progress over the next several years, as Escambia County is adapting a master plan to provide a more pedestrian-friendly, environmentally sensitive approach to development for the area. Escambia and Santa Rosa Counties’ single-family growth is in flux, with
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DESTIN By: John Fifer, CCIM Destin and South Walton County are undergoing a resurgence of residential and retail development. Housing sales have rebounded significantly, housing construction is booming and it seems like a new restaurant or boutique is opening in the area every week. There have been a lot of proposed planned residential developments all along 30A, including single family homes and vertical mixeduse condominium projects to infill housing in established developments. Recent land foreclosures are
MOBILE By: David Monroe Together, Mobile and Baldwin Counties make up the second largest metropolitan area in Alabama, with an estimated 2015 population of 618,159. It is also the state’s only major port. Surrounding Mobile Bay with some of the finest beaches on the Gulf of Mexico, Mobile has always prospered because of its location. Recent efforts by the Downtown Mobile Alliance are starting to pay off, as new businesses move in every month and “Coming Soon” signs abound. A 2014 announcement of 100 IT jobs from Rural Sourcing Inc., at an average salary of $50K, showcases renewed interest in companies moving to downtown. Baldwin County features a highly ranked public school system, high-end retail shopping and entertainment options, as well as safety and convenient access that people working in the Mobile area desire. With four out of five people moving to
generally being purchased by investors and developers. The South Walton County area is sorting through the last few foreclosure parcel sales and is beginning to see many non-foreclosure land sales as well; good examples of this are the outparcel sales at Plantation Commons anchored by Fresh Market and Home Depot. The retail market is hot, with most centers being leased up, like Beck Partners’s Plantation Commons. We’ve added HomeGoods, Tuesday Morning and a host of additional local tenants. The area is also seeing retail redevelopments and renovations. For example, the Downtown Destin Shopping Center
is being converted into a Publix, Emerald Coast Shopping Centre is renovating the Beall’s Department Store space and ongoing negotiations are trying to bring new anchor tenants to the market. Another example is the relocation of the WinnDixie and CVS redevelopment in front of Silver Sand Outlets. On the far east side of South Walton County, Inlet Beach has exploded as well. Inlet Beach is just east of Rosemary Beach and has experienced several large mixed retail and office use projects in the past two years. The Crossings contains approximately 25,000 SF of retail space that was fully leased prior to construction being completed. Across Hwy 98 is the larger 30Avenue retail project consisting of 130,000 SF of space. Many restaurants, retailers and service providers have opened in this location—it’s nearly fully leased as well. There is much to be excited about for the growth of Destin and South Walton County in the coming years.
Baldwin County from outside of the Mobile area, residents are drawn to its high quality of life and low cost of living. The University of South Alabama, located in West Mobile, is an economic powerhouse in the region, with 15,311 students, 5,500 employees and an annual economic impact of $3 billion. The university has an annual payroll of over $400 million. It boasts a School of Education and College of Business and a well-regarded medical program, with the related healthcare facilities treating over 250,000 patients annually. Several major manufacturers provide thousands of jobs in the Mobile area, including: Austal USA, a manufacturer of commercial vessels, currently employs more than 4,000 people in the Mobile area and recently completed building its eighth Littoral Combat Ship (LCS). Airbus began assembling commercial airliners this past summer, with its $600 million facility providing 1,000 new permanent jobs and 4,000 indirect jobs.
The plant is expected to produce between 40-50 aircraft per year by 2018.
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The recent addition of the $300 million Mobile Container Terminal has made Mobile the nation’s 12th largest port. In July 2014, The Port of Mobile announced the site selection for a $54 million automotive shipping terminal that will allow the state to ship Alabama-made cars and SUVs within two years. Mobile’s population is expected to grow by 4.25% over the next five years, and its economy is poised for continued growth in 2016 and beyond. INSIGHT | BECK PARTNERS
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Retail Rewind
PICKING UP SPEED
Trade Winds Shopping Center in Pensacola
Rebound in 2015
From Big Box to Freestanding, Gulf Coast retail is on the upswing. By John Fifer, CCIM and Stacy Taylor, CCIM
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he retail market along the Gulf Coast of Florida and Alabama has rebounded significantly in the past few years. In 2016, we’re expecting to see around 75% of retailers adding locations of all types and sizes, across most of our markets. Beginning with the largest retail type, a very active trend is the redevelopment of regional malls like WP Glimcher’s University Town Plaza in Pensacola and The Centre of Tallahassee. Other malls with plans to redevelop include Springdale Mall in Mobile, the Panama City Mall and Regency Square Mall in Jacksonville. Large anchors like Sears and JCPenney are often staying in place, with owners backfilling large vacancies with Academy Sports, Burlington Coat Factory and other creative uses, including entertainment facilities, trampoline parks, music venues and charter schools. Existing retail big box vacancies are being absorbed very quickly. Some examples of this include the new Whole Foods at Pinebrook Shopping Center in Mobile, Publix/Pottery Barn in Pensacola, Gander Mountain in Destin and Lucky’s Market in the
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Towne South Shopping Center in Tallahassee. As second generation big boxes fill up, retailers are looking for new locations, with a lot of larger retail development projects coming out of the ground and being proposed. These developments are paired with traditional suburban growth and also a newer trend to redevelop into denser urban locations, often with a second floor of office space or residential above. Retailers are looking at much smaller footprints within those downtown locations. Smaller retailers and franchisees are growing and expanding across all types of our shopping centers. The A Centers are pushing rents and upgrading the quality of their tenants. As smaller retailers are not finding locations in A Centers, they are building freestanding or smaller strip centers on outparcels. A lot of new strip centers and freestanding retailer developments are popping up along most of the Gulf Coast’s commercial corridors. Looking ahead, we expect the retail sector to have a very busy and profitable 2016. TEAMBECK.COM
2015 Lease Rate Averages Big Box
B Centers
A Centers Free-standing Retail $/SF/Year
2015 Average Price Per Acre
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Data compiled by Stacy Taylor, CCIM
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DONE DEAL.
Property Address: Challenge:
14230 Spartina Court Jacksonville, FL 32224 Jared Hatcher, from Beck Partners’ Tallahassee office, was hired by a family trust with eight trustees. This required conference calls weekly with all of the trustees and the trust attorney. The family trust had sold a property in Connecticut and were looking to 1031 the proceeds into a new property. Hatcher had to present all options and get the blessing of the Probate Court in Connecticut on the new investment property. The Probate Court required that he present three options for their approval.
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Action:
Given the slow pace at which the court system moves, Hatcher was required to negotiate extended due diligence periods with the Sellers. Of the approximately one dozen properties Hatcher presented to the trustees, The Goddard School was the favorite. Hatcher then narrowed down the list and negotiated at great length directly with the Seller (a seasoned developer and Harvard J.D.) throughout the transaction. Even though he had the property listed with a broker, he preferred to deal directly with Hatcher.
Result:
All told, Hatcher was able to work out all of the special circumstances his client had and get the deal closed.
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Introducing: One51Main PHOTOGRAPHY BY SHAWN SANDUSKY
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One51Main’s look combines traditional materials and design with contrasting contemporary styles
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Retail on the ground floor creates an inviting atmosphere along West Main Street
The building is on the doorstep to Community Maritime Park and Bayfront Stadium
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The Collaboration Station allows for quick pop-up meetings and brainstorming sessions
An open floor plan fosters energy and teamwork
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Building Up Downtown
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ne51Main, an exciting new address in Downtown Pensacola, opens the door to a new era for urban working and living in the city. The first of its kind in the City of Five Flags, the three story building is home to retail shops at the street level, the Beck Partners offices on the second floor and three upscale loft spaces on the top floor. Downtown Pensacola’s newest flagship is on the doorstep to cultural and sporting events, dining choices, shopping, concerts and nightlife in one of Northwest Florida’s fastest growing cities. Building Blocks The three-floor, 26,715 SF building boasts: • A retail and dining promenade • Retail shops including Barefoot Gypsy and Truth Soap Co. • A Sacred Heart Clinic • The second floor corporate offices of Beck Partners Inc.
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Three loft spaces ranging from 822 SF to 1,921 SF Private garages for loft owners Retail and office parking with 41 public spaces in a dedicated, landscaped parking lot A 1,446 SF second floor common area and event deck with landscaping and seating areas
Standing Out One51Main’s look combines traditional materials and design with contrasting contemporary styles to create a transition from the architecture along Palafox St. to the new developments springing up towards the west. The tower on the northeast corner, with its floor-to-ceiling windows, creates an attractive corridor to Maritime Park while the forty-five degree angle of the northwest corner, with a brick facade and shopping promenade, creates an invit-
ONE51MAIN
ing entrance to downtown from the west. The building also utilizes several green building techniques, including geothermal heating and insulated concrete form construction, as well as high efficiency lighting and a living wall. Its landscaping features native plant species with minimal water needs— one of the first new commercial structures in Downtown Pensacola to take advantage of the city’s green building ordinance. Prime Location One51Main is located at the corner of Main Street and Spring Street in Downtown Pensacola. It is the primary piece of property that creates a gateway to The Community Maritime Park, which includes Pensacola Bayfront Stadium, home of the Blue Wahoos. The architects at Bay Design have created a building design that defines its intersection and sets the tone for further development of the area.
The Bourbon Meeting Room and balcony overlook Pensacola Bay
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Digital Marketing
GETTING CONNECTED
CRE is increasingly moving away from paper and ushering in the Digital Age
Catching Up With The Curve
Technology’s growing role in commercial real estate. By: Lisa Daiss
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n 2015, Millennials, or Generation Y, overtook Generation X to make up the majority of the workforce. Older generations peg Millennials as entitled, lazy and impatient, but they’re simply misunderstood by their forebears. They’re the first generation to be molded by the digital age, which in turn shapes the way they live and work. For a Millennial, entering the commercial real estate industry is like taking a ride in Doc Brown’s DeLorean to a time in the distant past, where paper is still prevalent and social media is in its infancy. Let’s face it, the industry is years—maybe even decades—behind the technological curve. Perhaps this is in part due to the fact that those who have enough money to buy, lease and sell properties are older, having had more years to accumulate wealth. But technology is a pervasive force, Darwinian in nature; you either accept and adapt to it or become irrelevant, unable to function and die out. I myself am a Millennial, uprooted from a tech-savvy nonprofit in California to a commercial real estate firm in the Southeast. There are plenty of differences between the nonprofit and real estate worlds, but most striking is my new industry’s general disinterest in the beneficial use of technology. It wasn’t so much that commercial real estate was inherently Luddite—there just wasn’t the need to keep up with technology, especially in my 18
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new region of the country. So it was a pleasant surprise to find a future-facing industry leader in Beck Partners. Droning On and On Visuals are extremely important in marketing, especially in commercial real estate. They’re the first thing eyes are drawn to on a listing, the first impression to hook a prospect. For decades, the industry’s main marketing efforts have relied on brochures, digital or printed, as the centerpiece. They featured photos taken from eye-level, providing little dimension and perspective. Flat and uninspiring, ground-level photos render it difficult for a prospect to visualize the potential of a property. But until recently, it was all there was. And then came drones. The exact moment I realized Beck Partners was ahead of the technological curve was 8:02 am on my first day, when I walked into my new office and saw a DJI3 Phantom Advanced drone sitting on my desk. Imagine the scene in Dr. Seuss’s Grinch (the old school cartoon, not the Jim Carey version) when the tree in the town square grew a glowing halo TEAMBECK.COM
and sounds of a heavenly angel choir emerged from thin air. It was kind of like that. The drone has a three mile range. Automatic flight logs. GPS-assisted hover. Insanely hi-res photo and video [insert drooling noise]. It was love at first sight. Now, drones are taking the world by storm. Consumer drone sales are expected to reach four million this year, and quadruple to an astonishing 16 million by 2020. Hobbyists and wannabe Top Guns aside, the exploration of the commercial potential for drones began a few years ago, from delivery services like Amazon and Domino’s to farmers surveying their acreage remotely. But for marketing purposes, there are few industries that can benefit more from drones than real estate. What better way is there to effectively capture the entirety of a building, neighborhood or lot, in one shot? While drone photos can increase the level of dimension and perspective of a property, drone video ups the ante tenfold. The drone we use at Beck Partners shoots 12 megapixel photos and 2.7K videos. Translation: Extremely hi-res. Translation part deux: Marketing gold. For Beck Partners, 2016 will be the year of drone video; I personally can’t wait to take to the skies for virtual property tours. Data Game Strong Customer Relations Management (CRM) software has been the single most important thing to happen to the sales industry since the invention of the Rolodex. Prospecting, organizing, marketing and reporting are made nearly automated by incredible CRM software tools like Zoho, SAP and Salesforce. At Beck Partners, we use Salesforce with the commercial real estate plugin APTO to track our activity, stay organized and create detailed reports. We also utilize it for extremely targeted marketing efforts. Using Salesforce, we can sort and segment our audiences by industry, location, job title and dozens of other categories. For example, if I had a property I wanted to showcase only to lawyers in Destin, I could easily pull a segmented list from our database and send a targeted e-blast to that specific group. This way, I wouldn’t have to painstakingly go through our TEAMBECK.COM
contacts one by one to find Destin-area lawyers, or conversely risk sending a seemingly spammy email to our entire database, spurring dozens of unsubscribes. Clean, abundant, easily-accessible data makes for smooth and effective marketing. Syndication Nation Humankind’s need for efficiency drives technological advancement—think of the old adage: “Necessity is the mother of invention.” Technological progress is inspired by the desire to make things faster, easier and more efficient. Websites have all but replaced print publications in most industries, with commercial real estate bringing up the rear (but coming, nonetheless!). And with so many channels on which to advertise properties, a one-by-one listing operation would be next to impossible. So the ability to advertise one listing on dozens of channels like Catylist, MLS, Loopnet and Rofo with one click of a button is a marketing godsend. The syndication software we use at Beck Partners is called BuildOut, and it allows for greater return in less time and with less work—the very definition of smart, beneficial tech in the workplace. With the time we save using syndication, we can focus more on making our individual listings amazing, not to mention more time for me to become a drone ace. Another benefit of syndication software is that it provides code that can be embedded on our website, TeamBeck. com. This embedded code automatically pulls our listings from BuildOut, keeping our information accurate, updated and aesthetically consistent across all channels. As the younger generations continue to replace the old guard in the workplace, the use of technology will only increase and become exponentially faster, more advanced and more widespread. At its core, commercial real estate will remain the same: buying, selling and leasing properties. But the way it’s done will evolve with the Millennial Way of Life; it will become fully digital, efficient and integrated. So the question isn’t will you evolve, it’s when—and we plan on being at the front of the pack. n INSIGHT | BECK PARTNERS
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Progress Report: Pensacola 2015 was a busy year for development in America’s First Settlement. In 2011, Pensacola began the process of recovering from Hurricane Ivan (the terrible), a hard-hitting Great Recession and the devastating Deepwater Horizon oil spill. After a testing decade, the Gulf Coast was poised for a resurgence—there was nowhere to go but up. New commercial developments, a strengthening residential market and decreasing unemployment/increasing employment rates have all contributed to the renaissance Pensacola is currently experiencing. Two thousand and fifteen was an especially busy year, with a handful of exciting initiatives and plans being passed in City Hall, new projects and developments breaking soil and a host of ribbon cuttings and grand openings taking place every month. The following is a shortlist of the most notable area developments that took place in 2015: • New home construction was up over 105% from 2014 with 103 new homes being permitted in 2015. When compared to the last 5 years, new home construction was up over 200% for 2015. Almost one-third (1/3) of those new homes permitted in 2015 were in East Hill. Three new outparcels were created at Cordova Mall. Jared the Galleria of Jewelry opened in September 2015 and Longhorn
Charts courtesy of UWF Haas Center
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Steakhouse and BJ’s Brew House will be opening in 2016. •
A 250+ unit apartment complex and 60,000 SF office development was announced by Studer Properties.
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One Palafox Place, LLC announced the acquisition of the Brent block, and plans to renovate its historic structures.
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A new Centennial Bank and Harvesters Federal Credit Union broke ground and are in the construction phase.
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A four story Holiday Inn Express began construction in December on Main Street.
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A new 53,000 SF YMCA was permitted and is currently under construction.
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KESCO, a kitchen supply company, moved from the county into their new 19,000 SF building on West Main Street.
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Oren International moved their manufacturing business from a location in the county to 675 S. Pace Boulevard.
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The Institute for Human and Machine Cognition (IHMC) started construction on their new three story, 33,000 SF facility on East Romana Street.
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A new CVS Pharmacy completed construction at the former Angus Restaurant site on Scenic Highway.
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A new five story condominium building on S. Palafox Street is well into construction, with the shell nearly complete and the individual units currently being built out.
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A new three story retail/office/residential building, One51Main, was recently completed on the northeast side of the Maritime Park property. Source: City of Pensacola
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Looking south along Palafox Street in Downtown Pensacola
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Data compiled by Debbie Anglin, SIOR
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Education Corner
LEASING’S LATEST EVOLUTION
The Importance of Teamwork
Increasing collaboration has led to leasing’s rise in popularity. By David Valletto, SIOR
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easing has been a cornerstone of Beck Partners since its inception in 1981. The company’s experience is vast, covering most sectors of commercial real estate, with offices ranging in size from 60,000 SF spaces to executive suites. The company also has an extensive portfolio of office buildings that it both leases and manages. With three SIOR members (including Gregg Beck, who founded the Northwest Florida chapter of SIOR) and three CCIM members (including John Fifer, the current Northwest Florida chapter president), Beck Partners is stacked with professional experience in leasing. The Leasing Lowdown Leasing is a very important component of commercial real estate, as it permits tenants flexibility with cost savings and allows landlords to reap the benefits of rental income as investors. Our representation of landlords and tenants has been a focal point of our business model, and is expressed in the variety and amount of leasing transactions produced annually, covering office users, retail, industrial and land leases. Beck Partners has expanded throughout
Northwest Florida from Pensacola to Fort Walton Beach, Destin, Tallahassee, Panama City and most recently, Mobile, Alabama. Leasing has been and continues to be a major part of Beck Partners’ contribution to the commercial real estate market, with clients including Winn Dixie, CharterBank, Variety Wholesalers, Papa John’s, Subway and Pen Air. Teamwork Makes the Dream Work Traditionally, leasing has been considered an individual type of representation business. The process has recently evolved to include much more collaboration between brokers within an office, as well as actual teams organized to fit specific customer needs. Beck Partners leads the way with members integrating into multiple teams including our retail specialists: Stacy Taylor CCIM, John Fifer, CCIM, and Justin Beck, CCIM, CPM. Their success as a team is best articulated by Taylor: “I think it works because of the synergies we create. We are able to develop new ideas and opportunities through brainstorming and by seeing things from dif-
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ferent perspectives. The team concept has allowed us to win more business because landlords see the value in three people working on an assignment versus one. We’ve absolutely won some of our larger shopping center assignments due to the fact we have a three man team, including Plantation Commons in Destin, Palms of Foley in Foley, Alabama and Cordova Collections in Pensacola.”
“We are able to develop new ideas and opportunities through brainstorming and by seeing things from different perspectives.” - Stacy Taylor, CCIM, Senior Associate | Beck Partners All of our brokers participate in leasing in various forms, offering professional assistance and years of experience in all sectors. Medical office and retail are still prime sources of leasing, but land leasing is becoming more popular as property owners have determined they do not wish to give up title to their land. This type of work requires a specialized form of leasing with additional experience and expertise. Leasing continues to be a pillar of Beck Partners’ business model, and is picking up speed thanks to a newfound respect for teamwork. n
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Studer Group’s Maritime Place is one of many Class A buildings in Beck Partners’ property management portfolio
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Service Spotlight
PROPERTY MANAGEMENT
Striving for Perfection
What it takes to build, maintain and enhance an asset’s value. By Brice Pelfrey, CPM
A
t its core, real estate management is the performance of functions intended to achieve an owner or investor’s financial goals. Beck Partners has provided property management services since we opened shop in 1981. From that time, clients have depended on us to provide them with accurate and timely accounting and direct and transparent communication, in addition to reducing operating costs and maximizing their asset’s value. Beck Partners’ procedures are multi-faceted, with a focus on areas ranging from long-term financial goals to deferred maintenance items. Our team’s approach is holistic; we understand that each client and each property is unique. We deeply value our partnerships with owners and work hard to understand their goals. Our current management portfolio of nearly 2 million SF reaches across Florida’s Gulf Coast and continues to grow each year. We promote success by combining new technology and proven practices to provide the best possible service to both owners and tenants. Further, our team consistently demonstrates that they possess the knowledge and commitment to efficiently and accurately deliver services to our clients, which is evident in our client retention success.
“Our team’s approach is holistic; we understand that each client and each property is unique.” -Brice Pelfrey, CPM; Director of Property Management | Beck Partners
Beck Partners provides a full range of property management services including tenant relationships and retention, budgeting, accounting, construction administration and management, marketing and leasing and facilities management. Tenant Relations To be an effective property management company, good communication with both the owner and tenant is critical. Our goal is to establish an open, professional business relationship to help ensure the retention of tenants at a commercial property, as well as enforce all lease terms and property rules and regulations. Retaining tenants allows the owner to save re-improvement dollars, continue to benefit from market rents and improve the bottom line of their property investment. The foundation for sound tenant relations is providing superior maintenance services, responsiveness and professional management of the property. TEAMBECK.COM
Accounting Our detailed accounting processes are thorough yet streamlined, allowing for the appropriate checks and balances, but also giving us the ability to input, store and retrieve historical data quickly and accurately for our clients. We utilize several different technologies to support this protocol, including AVID Xchange and YARDI. We use AVID Xchange as our third party payables processing partner, YARDI as our lease management and accounting software and Microsoft Sharepoint for our file and data management. By employing these cloud-based tools, we are able to process information quickly, compile more thorough and accurate records and ensure the security and confidentiality of our clients’ information. Facility Management Maintenance is an ongoing process of balancing costs and services. Commercial tenants expect resolutions to maintenance problems in a timely manner, so we need to determine what is needed to preserve the physical condition of the property through continual inspection. When an issue is detected and identified, we determine the best and most cost-effective manner to resolve the challenge. Our Facility Management division offers commercial maintenance services to property owners, managers and businesses across Florida’s Gulf Coast. We keep all of our facilities running smoothly 365 days a year. Our in-house technicians can diagnose and repair just about any issue, install new services and fixtures and perform all types of commercial maintenance services. Our property maintenance team is highly experienced in selecting, hiring and managing subcontractors, and holding them accountable for the highest level of service. Our Goal This quote from Fred Prassas, CPM, sums up our philosophy of commercial management: “The end result of a real estate manager’s work is building, maintaining, and enhancing the value of a real estate asset. That work also is a critical component of the long term management plan, with analytical skills being used to make recommendations for a property’s future success. Real estate management is more than analysis—it is analysis put into action at the property level.” Our goal is simple: We aim to provide the best possible service to owners and their tenants, using proven practices but also constantly re-evaluating our procedures for the best return. n INSIGHT | BECK PARTNERS
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Giving Back
SETTING THE STANDARD
Investing in the Community Serving others as a part of corporate culture. By Kristine Rushing, CIC, CPIA During the interview process at Beck Partners, one question we ask all applicants is “In what ways do you give back to the community?” It’s important that we find team members who hold values that will align with the culture of our company. There are only 24 hours in the day. Twenty four hours to divide between our careers, our families our health and our hobbies, and sometimes serving others gets bumped to the bottom of the priority list. Amidst being engulfed in the Real Estate and Insurance industries, what are members of the Beck Partners team doing when they’re not working with clients, collaborating with local developers, creating opportunities or meeting with legislatures on industry initiatives? They are investing their time and resources in the communities that they serve to make a difference. As individuals, over 50% of Beck Partners’ employees give hours of their personal time to causes they believe in. The
list of causes is long, and includes: Serving on the Board for the Chamber of Commerce, coaching youth sports, mentoring children, growing businesses, exploring local historical assets to increase tourism, painting the local museum of art, cleaning up schools that have a lack of funding, supporting cancer awareness initiatives and more. Our team members are passionate about giving back on their own time. We also come together multiple times throughout the year to give back as an organization. In 2015, our biggest event was participating in the United Way Day of Caring, lending a hand to a local elementary school to clean up their campus. We spent the entire day weeding sandboxes, sweeping walkways, washing windows, painting murals and raking leaves. The gratitude of the school’s staff and thank-yous from the students left us humbled and fulfilled. Our organization supports the volunteer efforts of our team members and it’s reflected by directly impacting over 25 organizations and investing over 1,400 hours annually in our communities from Tallahassee to Mobile. We live our mission and vision here at Beck Partners and it shows: Connect and Protect is what we do, and we do it because we care to make difference.
Beck Partners’ volunteers giving back at the United Way Day of Caring
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SB0108 Insight Mag HP ad.indd 1
2/12/16 10:22 AM
DONE DEAL. Property 4920 Bayou Blvd. Address: Pensacola, FL 32503 Challenge: Beck Partners’ Justin Beck and John Fifer were hired
by a national bank to exclusively represent them in relocating one of their local branches. Their requirement was difficult because of confidentiality and the lack of available options within the market, which extended the length of time it took to find suitable options and also included new construction and working through extensive FDIC procedures.
Action: Beck and Fifer helped the bank identify the goals
they wanted to achieve with this new location. Working through this exclusive engagement and a thorough needs assessment process, they were eventually able to find the bank a great option within the market that was not publicly advertised at the time.
Result: Overall they were very successful in their endeavor
and the client was able to find a location which significantly reduced their square footage, while at the same time increased their visibility.
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Making Insurance Understandable The value of a knowledgeable agent. By Reid Rushing, CPIA, AAI Beck Partners has the knowledge, experience and relationships to provide you the insurance program for your real estate and your business. With insurance licenses in over 20 states and relationships with over 50 national/international carriers, we help change insurance from a four-letter word to something you can believe in again. Beck Partners makes the process as easy and understandable as possible. We specialize in writing business around the Gulf Coast, from Texas to the Carolinas. We focus our efforts in property risks, contractors, hospitality and not-for-profits. Our team is knowledgeable and competitive in all aspects of insurance, including Property, General Liability, Workers Compensation, Builders Risk and Professional Liability, as well as helping you prepare for the next phase of your business cycle. For building owners, it does not matter if you are just starting or if you have a portfolio with over $200 million in assets—we can handle your insurance needs. Our team will work with you for whatever you need, from putting together a Master Policy to finding you better Wind deductibles and terms. We also have team members that specialize in Private 28
INSIGHT | BECK PARTNERS
“We help change insur-
ance from a four-letter word to something you can believe in again.”
-Reid Rushing, CPIA, AAI, President | Beck Partners Insurance Asset Protection so that our clients can continue to enjoy the lifestyle that they work so hard for. It’s our goal to write policies that will best secure our clients’ Home and Auto needs, Recreational Vehicles and families. Additionally with our Risk Management Programs and insurance product offerings, we can help minimize your losses and keep you in business. Our job is to Connect you to the right company, program and policy and Protect you when the unforeseen accidents and losses happen. Connect and Protect. It’s what we do. TEAMBECK.COM
While We Were Out
URBAN RENEWAL
A Look at What’s Happening Elsewhere Warehouse Row breathes new life into Chattanooga. By: Justin Beck, CCIM, CPM
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or those of us who are passionate about urban renewal and development, what’s happening in downtown Pensacola is downright exhilarating. And as a confirmed real estate junkie, I’m always on the lookout for new and exciting developments wherever I go. What do I look for? Mixed-use is a great place to start. Even better if it’s a redevelopment of an old building. Better still if there’s a buzz and energy created in the neighborhood, the feeling materialized when a new development provides a sense of arrival or place. On a recent family road trip to the Smokey Mountains, I found such a place: Warehouse Row in Chattanooga, Tennessee. Purchased by Jamestown LP in 2006 (and recently acquired by The Simpson Organization), this 330,000 SF development represents one of the finest examples of urban redevelopment I’ve seen in the Southeast. Some of its highlights include: • • • •
Historic masonry, stone, and post and beam construction 330,000 SF of space 10’ – 15’ ceilings Onsite building maintenance and management
• • •
24 hour security and controlled access systems 426 garage parking spaces Destination shopping and dining
The property was originally the site of the Old Stone Fort during the Civil War, later transformed into a warehouse district at the turn of the century. It was redeveloped as a mixed-used development in the 1980s, but it wasn’t until Jamestown LP purchased the property in 2006 that it was really transformed. In January 2016, Atlanta-based property owner and management group The Simpson Organization purchased historic Warehouse Row, along with a nearby site where they plan to build a structure with 125 apartments, offices and ground-floor retail. Today, Warehouse Row is home to a great selection of retailers and restaurants including Anthropologie, Lululemon, J. Crew, Tupelo Honey Café, Public House and my personal favorite: Onward Reserve. The property is home to a wide variety of office users, as well. Chattanooga is a thriving city and Warehouse Row is a great example of how urban redevelopment can reignite a neighborhood. My heart skips a beat when I see an example like this, the product of investing in the heart of old cities for the sake of revitalization.
Photo courtesy of The Simpson Organization
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Available FEA
FOR LEASE
D E R TU
A SELECTION OF OUR LISTINGS
One Pensacola Plaza 125 W. Romana St., Pensacola, FL 32502 • • • • •
1,702 SF - 7,000 SF available Premier office space in Downtown Pensacola Tremendous views of Pensacola Bay and Downtown Close proximity to numerous retail/restaurants on Palafox Abundant parking in Downtown Core
Stacy Taylor, CCIM O 850.477.7044 C 404.936.8936 staylor@teambeck.com
View online listing
5041 Bayou Blvd. Pensacola, FL 32503 • • •
Class A, three story, 29,310 SF office building with retail frontage and exposure Located across the street from Cordova Mall and the premier retail district in Pensacola Highly visible location with easy access to I-10, I-110, Hwy 29 and Pensacola International Airport
Justin Beck, CCIM, CPM O 850.477.7044 C 850.529.7499 E jbeck@teambeck.com
John Fifer, CCIM O 850.477.7044 C 850.261.4684 E jfifer@teambeck.com
Class A Office Space 1701 Hermitage Blvd. Tallahassee, FL 32308 • •
• • • •
View online listing
700 S. Palafox St. Pensacola, FL 32502 • • • • • • •
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Four units available Downtown historic district south of Main Street From 1,511 SF up to 13,135 SF available immediately Some units with water views Full service lease rates Great landlord Ample parking
INSIGHT | BECK PARTNERS
View online listing
300 E. Chase St. Pensacola, FL 32502
• • •
View online listing
Jared Hatcher O 850.727.0003 C 850.443.2289 jhatcher@teambeck.com
Technology Campus •
Debbie Anglin, SIOR O 850.477.7044 C 850.501.1075 danglin@teambeck.com
Ten minutes from Downtown Tallahassee Space consists of 7 offices, 2 conference rooms, break room (including dishwasher) and file storage room Renovated lobby Monument signage available On-site property management Conveniently located to the I-10 interchange
FOR SALE
FOR LEASE
Historic Downtown Space
FOR LEASE
FOR LEASE OR SALE
Class A, High Visibility
One acre located in Downtown Pensacola on South 9th Avenue and East Salamanca Street Pricing is dependent on job creation and capital investment Elevation: 16 feet above sea level Zoned as General Redevelopment (GRD)
Justin Beck, CCIM, CPM O 850.477.7044 C 850.529.7499 jbeck@teambeck.com
Stacy Taylor, CCIM O 850.477.7044 C 404.936.8936 staylor@teambeck.com
John Fifer, CCIM O 850.477.7044 C 850.261.4684 jfifer@teambeck.com
View online listing
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2904 Pleasant Valley Rd. Mobile, AL 36606 • • • • • • • •
As-is foreclosure Value add opportunity Low occupancy Attractive assumable debt structure All utilities separated per unit Washer & dryer connections in each unit Onsite laundry room Public transportation stop at entrance to property
• • • •
David Monroe O 850.477.7044 C 251.508.0010 dmonroe@teambeck.com
•
Debbie Anglin, SIOR O 850.477.7044 C 850.501.1075 danglin@teambeck.com
Scott Jennings O 850.477.7044 C 850.341.7209 sjennings@teambeck.com
View online listing
Plantation Commons 4495 W. Commons Dr. Destin, FL 32541 • • •
John Fifer, CCIM O 850.477.7044 C 850.261.4684 jfifer@teambeck.com
FOR LEASE
FOR SALE
•
19.06 Acres across from Gulf of Mexico One of the largest sites available in Perdido Key Lost Key Golf Club and WCI Community neighbor to the North Zoned PRPK and Com-PK
Front open area is 2,166 SF, rear ‘distribution’ room is 1,840 SF Modified gross lease with tenant paying utilities Zoned C-2-A Perfect for retail or office use Accessible from Palafox and Gregory Streets
View online listing
13000 Perdido Key Dr. Perdido Key, FL 32507
•
186 N. Palafox St. Pensacola, FL 32502 •
Perdido Key 19.06 Acres •
Downtown Retail/Office
FOR LEASE
FOR SALE
Sky Valley Apartments
•
More than 36,000 SF of in-line space available for lease Anchored by Fresh Market, Home Depot, Marshalls and Home Goods Located along Hwy. 98 with daily traffic counts near the center exceeding 50,000 cars per day Free rent is negotiable
Justin Beck, CCIM, CPM O 850.477.7044 C 850.529.7499 jbeck@teambeck.com
Stacy Taylor, CCIM O 850.477.7044 C 404.936.8936 staylor@teambeck.com
View online listing
251 Miracle Strip Parkway Fort Walton Beach, FL 32569 • • • • •
Publix anchored shopping center Retail spaces available in heart of Downtown Fort Walton Beach Offering the most attractive lease rates in the market 52,000 cars per day 1,200 feet of road frontage
View online listing
Industrial Park - NW 4329 W. Pensacola St. Tallahassee, FL 32304 • • • •
Justin Beck, CCIM, CPM O 850.477.7044 C 850.529.7499 jbeck@teambeck.com
Stacy Taylor, CCIM O 850.477.7044 C 404.936.8936 staylor@teambeck.com
John Fifer, CCIM O 850.477.7044 C 850.261.4684 jfifer@teambeck.com
FOR SALE
FOR LEASE
Paradise Pointe
• •
Light Industrial Warehouse Park Convenient access to I-10 Potential distribution facility Partially leased with the ability to owner-occupy or lease out the remaining spaces Excellent signage Easy access to I-10
Jared Hatcher O 850.727.0003 C 850.443.2289 jhatcher@teambeck.com
View online listing
1016 E. Gregory St. Pensacola, FL 32502 • •
• •
1.77 acre downtown waterfront development site Vacant commercial property in Downtown Pensacola with great water view of Pensacola Bay Zoned for hotel, condo or restaurant Site has 15-25 feet of elevation above high tide
View online listing
Lender-owned Four Story 7282 Plantation Rd. Pensacola, FL 32504 • • • •
Justin Beck, CCIM, CPM O 850.477.7044 C 850.529.7499 E jbeck@teambeck.com
•
View online listing
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FOR LEASE OR SALE
FOR SALE
Waterfront Development
John Fifer, CCIM O 850.477.7044 C 850.261.4684 jfifer@teambeck.com
Bank owned four story office complex Aggressive pricing Good investment or owner occupied property with plenty of potential Located in redevelopment area by the Simon Group Visibility from I-10 and 1-110
David Valletto, SIOR O 850.477.7044 C 850.501.1075 dvalletto@teambeck.com
Gregg Beck, SIOR O 850.477.7044 C 850.341.7209 gbeck@teambeck.com
View online listing
INSIGHT | BECK PARTNERS
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Market Update
MULTIFAMILY IN 2015
Enjoying a Bull Run
Will 2016 be an encore to an expectation-shattering 2015 performance? By: David Monroe
T
he apartment market in South Alabama and Northwest Florida was better than expected at the start of 2015. Economists thought the delivery of new units would cause vacancy to increase and rents to flatten out or even decrease by year’s end. They were wrong. On the national front, we saw rent increases of more than 5% for eight straight months in 2015. This was the longest streak in the history of multifamily record keeping. In the Gulf Coast market, we saw a 4.2% YOY increase from 4Q2014 to 4Q2015, most of which occurred in the first three quarters. There was no change in rent growth from 3Q2015 to 4Q2015. This statistic, of course, is different for each market from Mobile to Tallahassee. The Coastal Markets delivered 699 units in 2015. There are 851 units currently under construction with another 594 in the pipeline that have permits. There were 369 units absorbed giving our total market a 5.5% vacancy rate to close out 2015. Our total inventory is 120,542 units. Rental Market With rents at their highest levels ever, it may be time to say the multifamily market will finally level out and may even decrease slightly, unless the new Administration elected this upcoming year can get the middle class some wage growth. Our Occupancy vs. Rental Rate Chart (above) shows this may be starting already, though
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than 2014, which was in turn slightly less than 2013. The average price per unit was $48,776 across all classes. This is dramatically different when compared to each class of property. Class A properties brought a staggering $103,365 per unit and contributed $300 million in total sales. Class B properties saw $47,861 per unit and contributed $143 million in total sales. Class C and Class D properties bring up the rear with a per unit sold price of $28,811 and contributed $81 million to the total sales volume. Cap Rates
one quarter a trend does not make. We’ll be interested to look at this in the second quarter to see if it regains strength, or if we are headed down. After two years of declines in Concessions from 1.990% in 2013 to 0.987% in 1Q2015, they have been steadily creeping back up to 0.990% in 4Q2015. This is another sign that rental rates may have hit their limit. Sales Market On the sales side, multifamily had a strong performance in 2015 with $524 million in total sales volume. But that was slightly less
Average cap rates increased in 2015 across all classes as the year wound to a close. The average cap rate for the year was 8.3%, but the average cap rate per class of property was very different. Class A properties had an average cap rate of 6.3%, a decrease from 2014. Class B properties had an average cap rate of 7.4%, also a decrease from 2014, and Class C and Class D properties had an average cap rate of 9.5%, almost 150 basis points above 2014. With interest rates beginning to rise, rents stabilizing, vacancy increasing and inventory yet to hit the market, I believe 2016 is the year for getting the most value out of your existing multifamily asset and to explore a potential exit strategy. For property managers, it’s time to look at creative ways to keep occupancy and rents up to keep the asset values high. n
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DONE DEAL.
Property Address: Challenge:
6601 Old Shell Road Mobile, AL 36608 Rose Garden Apartments, a 34 unit multifamily property in Mobile, AL, had a loan balance more than the property was worth and more than half the tenants not paying their rent. It was experiencing negative cash flow with reserves depleted.
Action:
David Monroe (now with Beck Partners) assisted the Owner in selling the property, immediately taking steps to mitigate any further losses. He was finally able to get the lender to agree to a short sale, and a multi-faceted marketing approach was implemented which included personal, digital and physical marketing efforts.
Result:
Four offers were secured within 30 days of listing the property as a short sale. The Bank and the Owner proceeded with exclusive negotiations with one potential buyer, based on the potential to purchase, renovate and secure higher rents for a strong cash flow—the asset had greater perceived value. The sale closed in the middle of April 2015.
Why Choose a CCIM? By John Fifer, CCIM There are many benefits in choosing to work with a Certified Commercial Investment Member (CCIM). Commercial real estate investment requires the counsel of many qualified professionals, and a CCIM provides clients with the knowledge and assurance that every decision will be made to meet their investment objectives. CCIMs must be proficient in four key areas of commercial real estate: 1. 2. 3. 4.
Investment Analysis Market Analysis User Decision Analysis Financial Analysis
CCIMs also have access to a suite of online technology tools through STDB.com (Site To Do Business) to help them advise their clients to make their most important decisions. If you’re a client of mine, you’ve definitely seen the benefits of the financial analysis and site location/demographics tools. In the Gulf Coast market, approximately 45% of business owners own their own building or real estate. This is higher than larger markets because the barrier to entry is lower. Because of this, I am TEAMBECK.COM TEAMBECK.COM
often providing a “Lease vs. Buy Comparison” using the CCIM technology. This tool alone has made the years of effort to get the CCIM designation worth it. In addition to these financial tools, CCIMs have exclusive access to advertise properties for sale or lease through their online CCIM.net commercial real estate exchange. To earn the CCIM designation, a candidate must complete six rigorous courses in financial analysis, market analysis, user decision analysis, investment analysis, ethics and negotiating (totaling 160 hours of case-driven study), submit a portfolio of qualifying industry experience, and then demonstrate practical expertise by passing six challenging comprehensive exams. For something so valuable and rewarding, you might be surprised to learn how few commercial agents have the CCIM designation. Here along the Gulf Coast, there are just over 1,600 licensed commercial agents, of which only 6% are CCIMs. As the President of the CCIM Florida Panhandle District, I encourage any commercial or residential real estate agent to tackle one or two courses—they will dramatically improve your understanding of the commercial real estate industry and help you be a better professional. Keep your eyes open for an Introduction or Fundamentals Course in 2016. And, as I always recommend when assembling a commercial real estate investment team, start with a CCIM. INSIGHT | BECK PARTNERS INSIGHT | BECK PARTNERS
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Data compiled by Scott Jennings
DONE DEAL.
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Property Address:
25 W. Government Street Pensacola, FL 32502
Challenge:
2-Story Single User Office Building, 14,946 SF. Beck Partners’ Debbie Anglin, SIOR, was challenged to find a single user that needed this much space. The property was listed in February 2015 but was not available for occupancy until May 2015. Another challenge on this particular building was that Beck Partners was unable to post their real estate signs on the property.
Action:
Because of the challenges listed above, Anglin employed direct mail, email blasts, as well as digital listings on Gulf Coast CMLS, Loopnet, Costar and many other local and regional networks. In this case, the tenant called Anglin after seeing the listing on Gulf Coast CMLS.
Result:
It took 60 days to lease from the time negotiations started until the tenant occupied the building. Many improvements were made by the Landlord for a five (5) year term at a negotiated rate. The building was leased with an occupancy date of June 1, 2015, with only one month of lost rent for the Landlord.
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Back Page Proust
INSIDE THE INDUSTRY’S GREAT MINDS
Keeping Up with Paul Kang We chat with the CRC VP about business, life and long-distance relationships. Interview by Justin Beck, CCIM, CPM We sat down with Paul Kang, Vice President of Acquisitions/ Dispositions at Continental Real Estate Corporation, to find out more about his life, commercial real estate knowledge and why the Gulf Coast is a great place to invest. JB: What’s your hometown? PK: St. Louis, MO. JB: Alma mater? PK: University of Michigan. JB: What’s your day job? PK: I’m the Vice President of Acquisitions/Dispositions at Continental Real Estate Corporation. JB: What was your worst-ever investment? PK: I bought my first car, a beat-up Nissan Altima, for $1,300. Only drove it for a year before totaling it and paid the junk yard $1,400 for storage and disposal. A lot of lessons learned from that experience. JB: What has been your best idea? PK: Transitioning our acquisitions contacts and deal database to a fully integrated and customized Salesforce.com platform. JB: Do you have any pay-it-forward wisdom? PK: No matter where you start in your career, take every single opportunity as a learning experience, whether you’re starting at the bottom, middle or at the top. Every single one of the positions that I have had has helped me to get to where I am today. JB: What’s your biggest worry? PK: What I am going to eat for my next meal. JB: Why invest in the Gulf Coast? PK: CRC purchased its first Gulf Coast asset in 2013 with the acquisitions of Plantation Commons in Destin, Florida. We saw a tremendous opportunity to acquire a high-performing Fresh Market and Marshalls anchored center at 70% occupancy in a 94% occupied market at the time. The center is 95% occupied today. We were attracted to the Destin market specifically given the growing retailer/tourism demand and long season coupled with the fact that it is a barrier island that has a limited amount of land for new development. JB: What can we look forward to in 2016? PK: We are excited about 2016 and will continue to focus on purchasing value-add shopping centers and apartments for our $165,000,000 Continental Realty Fund IV. It should be interest-
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Paul Kang, Vice President of Acquisitions/Dispositions | Continental Real Estate Corporation
ing as pricing has become very competitive. JB: What’s the last book you read? PK: 13 Hours in Benghazi. JB: When you aren’t working, you are probably where? PK: Spending time with my wife Sue-Jean and 7 month-old daughter, Josephine. Or golfing. JB: Who has had the biggest influence on your career? PK: J.M. Schapiro, friend and CEO of Continental Realty Corporation. He has been a mentor and has helped me get to the next level in understanding the business. JB: What is one thing you believe that most people don’t? PK: Long distance relationships work! Three of the four years before marrying my wife were spent long distance. Paul Kang joined CRC in 2011 and serves as the Vice President of Acquisitions. In his role, he leads retail acquisitions and dispositions, manages broker/owner relationships, and oversees the underwriting and due diligence process. Prior to joining CRC, Paul worked at First Capital Realty, CB Richard Ellis, Costar Group, and the Greenwich Group International. Paul has a B.A. in Economics from the University of Michigan. He is also an active member of ICSC (International Council of Shopping Centers). (Source: crcrealty.com)
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Providing exceptional architectural design & services to our clients for over 20 years.
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