The State of Real Estate 2011
Tucker attendees told public work driving real estate
Tucker attendees tell of slow home sales, rebounding industrial sector
By Susan Orr
Evansville Courier & Press
Posted February 18, 2011 at 12:50 a.m.
http://www.courierpress.com/news/2011/feb/18/public-work-driving-real-estate-tucker-attendees/
Evansville's retail and land development market last year got a boost from a place you might not expect - the public sector.
Last year, public infrastructure projects resulted in $80 million in private investment in the Evansville area, said F.C. Tucker Commercial Sales Associate Gary Bumb.
"The public/private partnership paid big dividends in 2010," Bumb told those assembled for F.C. Tucker's State of Real Estate program Thursday evening at The Centre.
Bumb focused on how two public projects have led to private development.
The new North High School campus, under construction along U.S. 41 at Baseline Road, has spurred a number of private developments, Bumb said, including a new facility for Brandeis Machinery, a new CVS store as well as a shopping center and a Roca Bar restaurant.
Bumb also focused on the widening of North Green River Road which he linked to a number of new projects on Evansville's East Side.
Those developments include Lucas Oil Center, a car wash and service center soon to open on North Green River Road; the new Social Security Administration Building; a recently-announced Cheddar's restaurant; two new strip shopping centers; and the under-construction Veterans Affairs clinic.
Evansville Mayor Jonathan Weinzapfel, the event's keynote speaker, echoed the public/private partnership theme.
"For better or worse, the government has the ability to impact the real estate industry in many different ways," the mayor said.
As an example, Weinzapfel cited a grant program the city established in 2004 to spur residential development in Downtown Evansville.
Using money generated by Casino Aztar's operations, the city's grant program was gradually phased out as private development took over, Weinzapfel said.
The program also covered the residential and industrial markets.
The local housing market is still moving toward a post-recession "new normal," said F.C. Tucker/Emge Realtors Owner Officer Kathy Briscoe.
Last year 3,987 homes were sold in the Evansville market. That compares to 4,171 in 2009 and 4,209 in 2008.
"Let's call a spade a spade - 2010 was not what we wanted in home sales," Briscoe said.
On the positive side, Briscoe said she expects housing sales to improve by the second half of the year, and the number of days houses stay on the market should drop.
Briscoe said she expects mortgage interest rates to rise by the end of the year. She also foresees average home sale prices rising by 2 to 3 percent.
In the industrial market, the state is rebounding from 2010 when vacancies hit their peak, said F.C. Tucker Commercial President Ken Newcomb Jr.
The local market took a hit last year when Whirlpool shut down its production line, leaving its 1.5 million-square-foot plant vacant as well as 900,000 square feet of warehouse space.
But, Newcomb said, Evansville's industrial market as a whole fared better than most.
"In 2010 we had a number of expansions, leases and sales that indicated Evansville is headed in the right direction."
Looking ahead, Newcomb said he believes the industrial leasing rate will outpace the vacancy rate. He also predicted that construction will remain flat, and rents will gradually rise later in the year.
Overall, the speakers were optimistic about the year ahead.
"2010 was better than 2009. 2011 will be better than 2010," F.C. Tucker Commercial Realtors owner Kevin Eastridge told the group.
