February 17, 2010 ::
The State of Real Estate 2010
"2009 - what a year. For one, I'm glad it's gone," said Ken Newcomb Jr., president of F.C. Tucker Commercial.
Newcomb and other F.C. Tucker representatives presented a mixed picture of the Evansville area's commercial real estate market: still struggling, but also showing signs of hope.
Industrial real estate in particular is facing challenges.
In the first half of 2008, Newcomb said, the Evansville market had very little vacant industrial space. That rose to about 4 million square feet of vacant space last year, and it stands at 6.1 million square feet now.
"That's a big number for market like Indianapolis or Louisville, much less in the Evansville metro market," Newcomb said.
Industrial property values and lease rates also are down.
On the positive side, Newcomb said, several companies in the Tri-State and around Indiana, including Berry Plastics, Mead Johnson and Toyota, have all shown signs of growth.
"Realistically, Evansville and the state of Indiana have fared far better than our surrounding counterparts in the Midwest."
In the office/redevelopment and retail markets, Evansville is holding its own, presenters said.
The local office vacancy rate is 18 percent, as compared with 21 percent in the Indianapolis market, said Harris Howerton, a broker associate with Tucker Commercial.
Office rental rates will continue to drop, Howerton predicted, and this segment of the market won't see a turnaround this year.
But an 18 percent vacancy rate "is not all that bad," Howerton said, because in the industry, a vacancy rate if 14 percent or less is considered desirable.
And Evansville's Downtown, Howerton said, is one local bright spot, with the former Old National Bank building (420 Main St.), the Old Post Office and the Old Courthouse all adding tenants. The redevelopment of the former Welborn Baptist Hospital and the former McCurdy Hotel and the construction of a Downtown arena are also positives, he said.
On the retail scene, big box retailers pulled in their horns last year. As an example, F.C. Tucker Commercial Vice President Dannetta Hiatt said, Walmart opened only two new stores in Indiana.
But one of those stores was in Newburgh, which saw a big boost in retail as smaller stores sprang up near the new Walmart.
"Newburgh has had a great year," Hiatt said.
Looking into the future, Hiatt said, the U.S. 41 North corridor is poised for growth when the new North High School opens in that area. The Downtown arena and new Veterns Affairs outpatient clinic planned off North Burkhardt Road will boost retail growth in those areas, she predicted.
And looking at Evansville's housing market, conditions are improving, said Kathy Briscoe, owner of F.C. Tucker Emge Realtors.
After hitting a low point in January 2009, the Tri-State housing market began to turn around in July 2009, thanks in part to the tax credit offered to first-time homebuyers, Briscoe said.
"The worst is over," she said
">
Local real estate picture mixed
Evansville Courier & Press
Friday, February 19, 2010
http://www.courierpress.com/news/2010/feb/19/local-real-estate-picture-mixed/
Susan Orr
STAFF WRITER / (812) 461-0783
orrs@courierpress.com
At its annual "State of Real Estate" presentation Thursday at The Centre, F.C. Tucker Commercial clearly was eager to put the past to rest.
AC/DC's "Back in Black" blared from speakers before the program began, and one buffet table displayed signs on which were printed "2009" with the universal circle and slash "NO" sign.
"2009 - what a year. For one, I'm glad it's gone," said Ken Newcomb Jr., president of F.C. Tucker Commercial.
Newcomb and other F.C. Tucker representatives presented a mixed picture of the Evansville area's commercial real estate market: still struggling, but also showing signs of hope.
Industrial real estate in particular is facing challenges.
In the first half of 2008, Newcomb said, the Evansville market had very little vacant industrial space. That rose to about 4 million square feet of vacant space last year, and it stands at 6.1 million square feet now.
"That's a big number for market like Indianapolis or Louisville, much less in the Evansville metro market," Newcomb said.
Industrial property values and lease rates also are down.
On the positive side, Newcomb said, several companies in the Tri-State and around Indiana, including Berry Plastics, Mead Johnson and Toyota, have all shown signs of growth.
"Realistically, Evansville and the state of Indiana have fared far better than our surrounding counterparts in the Midwest."
In the office/redevelopment and retail markets, Evansville is holding its own, presenters said.
The local office vacancy rate is 18 percent, as compared with 21 percent in the Indianapolis market, said Harris Howerton, a broker associate with Tucker Commercial.
Office rental rates will continue to drop, Howerton predicted, and this segment of the market won't see a turnaround this year.
But an 18 percent vacancy rate "is not all that bad," Howerton said, because in the industry, a vacancy rate if 14 percent or less is considered desirable.
And Evansville's Downtown, Howerton said, is one local bright spot, with the former Old National Bank building (420 Main St.), the Old Post Office and the Old Courthouse all adding tenants. The redevelopment of the former Welborn Baptist Hospital and the former McCurdy Hotel and the construction of a Downtown arena are also positives, he said.
On the retail scene, big box retailers pulled in their horns last year. As an example, F.C. Tucker Commercial Vice President Dannetta Hiatt said, Walmart opened only two new stores in Indiana.
But one of those stores was in Newburgh, which saw a big boost in retail as smaller stores sprang up near the new Walmart.
"Newburgh has had a great year," Hiatt said.
Looking into the future, Hiatt said, the U.S. 41 North corridor is poised for growth when the new North High School opens in that area. The Downtown arena and new Veterns Affairs outpatient clinic planned off North Burkhardt Road will boost retail growth in those areas, she predicted.
And looking at Evansville's housing market, conditions are improving, said Kathy Briscoe, owner of F.C. Tucker Emge Realtors.
After hitting a low point in January 2009, the Tri-State housing market began to turn around in July 2009, thanks in part to the tax credit offered to first-time homebuyers, Briscoe said.
"The worst is over," she said
">
AC/DC's "Back in Black" blared from speakers before the program began, and one buffet table displayed signs on which were printed "2009" with the universal circle and slash "NO" sign.
"2009 - what a year. For one, I'm glad it's gone," said Ken Newcomb Jr., president of F.C. Tucker Commercial.
Newcomb and other F.C. Tucker representatives presented a mixed picture of the Evansville area's commercial real estate market: still struggling, but also showing signs of hope.
Industrial real estate in particular is facing challenges.
In the first half of 2008, Newcomb said, the Evansville market had very little vacant industrial space. That rose to about 4 million square feet of vacant space last year, and it stands at 6.1 million square feet now.
"That's a big number for market like Indianapolis or Louisville, much less in the Evansville metro market," Newcomb said.
Industrial property values and lease rates also are down.
On the positive side, Newcomb said, several companies in the Tri-State and around Indiana, including Berry Plastics, Mead Johnson and Toyota, have all shown signs of growth.
"Realistically, Evansville and the state of Indiana have fared far better than our surrounding counterparts in the Midwest."
In the office/redevelopment and retail markets, Evansville is holding its own, presenters said.
The local office vacancy rate is 18 percent, as compared with 21 percent in the Indianapolis market, said Harris Howerton, a broker associate with Tucker Commercial.
Office rental rates will continue to drop, Howerton predicted, and this segment of the market won't see a turnaround this year.
But an 18 percent vacancy rate "is not all that bad," Howerton said, because in the industry, a vacancy rate if 14 percent or less is considered desirable.
And Evansville's Downtown, Howerton said, is one local bright spot, with the former Old National Bank building (420 Main St.), the Old Post Office and the Old Courthouse all adding tenants. The redevelopment of the former Welborn Baptist Hospital and the former McCurdy Hotel and the construction of a Downtown arena are also positives, he said.
On the retail scene, big box retailers pulled in their horns last year. As an example, F.C. Tucker Commercial Vice President Dannetta Hiatt said, Walmart opened only two new stores in Indiana.
But one of those stores was in Newburgh, which saw a big boost in retail as smaller stores sprang up near the new Walmart.
"Newburgh has had a great year," Hiatt said.
Looking into the future, Hiatt said, the U.S. 41 North corridor is poised for growth when the new North High School opens in that area. The Downtown arena and new Veterns Affairs outpatient clinic planned off North Burkhardt Road will boost retail growth in those areas, she predicted.
And looking at Evansville's housing market, conditions are improving, said Kathy Briscoe, owner of F.C. Tucker Emge Realtors.
After hitting a low point in January 2009, the Tri-State housing market began to turn around in July 2009, thanks in part to the tax credit offered to first-time homebuyers, Briscoe said.
"The worst is over," she said
">
Local real estate picture mixed
Evansville Courier & Press
Friday, February 19, 2010
http://www.courierpress.com/news/2010/feb/19/local-real-estate-picture-mixed/
Susan Orr
STAFF WRITER / (812) 461-0783
orrs@courierpress.com
At its annual "State of Real Estate" presentation Thursday at The Centre, F.C. Tucker Commercial clearly was eager to put the past to rest.
AC/DC's "Back in Black" blared from speakers before the program began, and one buffet table displayed signs on which were printed "2009" with the universal circle and slash "NO" sign.
"2009 - what a year. For one, I'm glad it's gone," said Ken Newcomb Jr., president of F.C. Tucker Commercial.
Newcomb and other F.C. Tucker representatives presented a mixed picture of the Evansville area's commercial real estate market: still struggling, but also showing signs of hope.
Industrial real estate in particular is facing challenges.
In the first half of 2008, Newcomb said, the Evansville market had very little vacant industrial space. That rose to about 4 million square feet of vacant space last year, and it stands at 6.1 million square feet now.
"That's a big number for market like Indianapolis or Louisville, much less in the Evansville metro market," Newcomb said.
Industrial property values and lease rates also are down.
On the positive side, Newcomb said, several companies in the Tri-State and around Indiana, including Berry Plastics, Mead Johnson and Toyota, have all shown signs of growth.
"Realistically, Evansville and the state of Indiana have fared far better than our surrounding counterparts in the Midwest."
In the office/redevelopment and retail markets, Evansville is holding its own, presenters said.
The local office vacancy rate is 18 percent, as compared with 21 percent in the Indianapolis market, said Harris Howerton, a broker associate with Tucker Commercial.
Office rental rates will continue to drop, Howerton predicted, and this segment of the market won't see a turnaround this year.
But an 18 percent vacancy rate "is not all that bad," Howerton said, because in the industry, a vacancy rate if 14 percent or less is considered desirable.
And Evansville's Downtown, Howerton said, is one local bright spot, with the former Old National Bank building (420 Main St.), the Old Post Office and the Old Courthouse all adding tenants. The redevelopment of the former Welborn Baptist Hospital and the former McCurdy Hotel and the construction of a Downtown arena are also positives, he said.
On the retail scene, big box retailers pulled in their horns last year. As an example, F.C. Tucker Commercial Vice President Dannetta Hiatt said, Walmart opened only two new stores in Indiana.
But one of those stores was in Newburgh, which saw a big boost in retail as smaller stores sprang up near the new Walmart.
"Newburgh has had a great year," Hiatt said.
Looking into the future, Hiatt said, the U.S. 41 North corridor is poised for growth when the new North High School opens in that area. The Downtown arena and new Veterns Affairs outpatient clinic planned off North Burkhardt Road will boost retail growth in those areas, she predicted.
And looking at Evansville's housing market, conditions are improving, said Kathy Briscoe, owner of F.C. Tucker Emge Realtors.
After hitting a low point in January 2009, the Tri-State housing market began to turn around in July 2009, thanks in part to the tax credit offered to first-time homebuyers, Briscoe said.
"The worst is over," she said
