Avison Young Releases 2016 CRE Forecast

Avison Young has released its 2016 Canada, U.S. and U.K. Forecast, suggesting that stakeholders "will need to keep a global perspective, stay abreast of changes in the broader environment and, increasingly, devise innovative solutions to complex problems." The company's annual report looks at commercial real estate markets in 55 metropolitan regions in Canada, the U.S. and U.K., analyzing activity from 2015 and prospects for the year ahead. For the U.S. office markets, Avison Young saw overall vacancy declined 60 bps year-over-year to 12.4%, in 2015, with all but six markets recording lower rates when compared with year-end 2014. At year-end 2015, the amount of office space under construction in the U.S. had increased to almost 86 msf (52% preleased), up from 68 msf one year earlier; however, according to Avison Young, there is no real threat of oversupply in the near term.

Avison has forecast "modest improvement" in the U.S. office vacancy rate in the coming year, noting that absorption may be tempered by tenants shifting to smaller and more efficient footprints. "From an occupier perspective, we have seen a slight decrease in capital deployment, primarily related to economic uncertainty, and the occupier tendency toward risk aversion, shorter leases and optimization of space usage may continue in 2016,"said Earl Webb, President, U.S. Operations for Avison Young.

To read the full Avison Young forecast, click here. For more news and information visit Blumberg Partners.

Avison Young Sells Landmark Building

Avison Young, the Toronto-based real estate firm, has completed the sale of the Landmark Building at 2100 Main Street in Irvine, CA for $27.41 million. A partnership between 2100 Main L.P. and Bethel Holdings, LLC sold the Class A office building to Property Investment Co., which was represented by North American Commercial and Industrial Properties, Inc. in the transaction. Terms of the deal were not disclosed.

"This transaction was completed off-market," Avison Young Principal Alan Pekarcik told GlobeSt in an exclusive interview. "The buyer plans to occupy approximately 10,000 sf to 15,000 sf of the building." According to the report, the property was approximately 60% occupied by nine tenants at the close of escrow.

The Landmark Building is a four-story, 89,041-square-foot building off of MacArthur/Von Karman, within minutes of the John Wayne Airport. The building is located on the manicured grounds of Irvine Concourse Business Center with a large covered parking structure adjacent to the property. Originally built in 1985, it recently underwent upgrades to include a renovated lobby with floor to ceiling windows and modern, open office floor plans.

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Exeter Buys Chicago Area Industrial Portfolio

Avison Young, the Toronto-based commercial real estate services firm, has sold a 900,000-square-foot portfolio in the Chicago industrial market to Exeter Property Group for an undisclosed sum. The four-building industrial portfolio located around the perimeter of Chicago was sold by an Avison Young fund managed by J.P. Morgan Asset Management. Erik Foster and Mike Wilson of Avison Young's national industrial capital markets group handled the transaction, and Foster told GlobeSt.com that the net lease purchase is part of a larger trend.

"We've seen a lot of buyers that need higher returns making purchases in class B submarkets within core markets like Chicago," said Foster. Although each of these properties is relatively new and fully-leased to strong credit tenants, they are located in suburban Monee and Batavia, and in Portage, IN, all part of the greater Chicago market but outside the truly core submarkets like I-55.

The properties in the portfolio include:

• A 246,300-square-foot building at 25777 S. Cleveland Ave. in Monee, IL in the greater Chicago market. The tenant is Liberty Furniture, a privately owned furniture manufacturer with a national distribution base. Built in 2001, the building has 30-foot ceiling heights.
• A 239,700-square-foot facility at 25975 S. Cleveland Ave. in Monee, IL, in the greater Chicago market. DIY Group, a packaging, warehouse and distribution services company, leases 100 percent of the space, built in 2005. The building has 30-foot ceiling heights.
• A 251,465-square-foot building at 1160 Pierson Dr., in Batavia, IL, in the greater Chicago market. The space is leased by DS Containers (193,465 SF), a consumer packaging company, and Superior Health Linens (58,000 SF), a healthcare supply company. Built in 2006, the building has 30-foot ceiling heights.
• A 157,120-square-foot building at 5900 Carlson Ave. in Portage, IN, in Northwest Indiana, considered part of the greater Chicago market. The building was built in 1995, has 29-foot ceiling heights and is leased to Manufacturing Solutions. The tenant is a leading manufacturing and engineering company.

For more news and information visit Blumberg Capital Partners.

Abood Wood-Fay Acquired by Avison Young

Avison Young, the international commercial real estate services firm, announced that it had entered into a definitive agreement to acquire Abood Wood-Fay Real Estate Group, LLC (dba Colliers International South Florida). The purchase of the Miami-based real estate brokerage and property management firm expands Avison Young's Florida offerings, adding 70 employees from Abood Wood-Fay Real Estate Group's Miami, Fort Lauderdale and Palm Beach offices to Avison Young's operations in South Florida. Terms of the acquisition were not disclosed.

"We look forward to welcoming Abood Wood-Fay Real Estate Group to Avison Young," said Mark Rose, chair and CEO of Avison Young. "This strategic acquisition will give Avison Young an even broader client-service platform in the Florida market as we continue to expand our capabilities throughout the U.S. and overseas."

Michael Fay and Donna Abood merged their firms in 2002, and that company aligned with Colliers in 2005, according to a Sun Sentinel report. Fay and Abood will become principals of Avison Young, building business for the firm in Miami."I have a great deal of respect for what they've created," said Pike Rowley, managing director of Florida for Avison Young. "They've been on my radar for quite some time."

For more news and information visit Blumberg Capital Partners.

Avison Young Acquires Aguer Havelock Associates

Aguer Havelock Associates, a Sacramento-based real estate brokerage company and a former member of the NAI network, has been acquired by Avison Young, the Canadian commercial real estate services firm. Founded in 1992, Aguer Havelock Associates is an independently owned commercial real estate brokerage firm offering a full slate of commercial real estate services to businesses operating in diverse sectors, and serving five counties: Greater Sacramento, El Dorado, Pacer, San Joaquin and Yolo. The change in ownership adds five new employees to Avison Young's operations in Sacramento, according to a GlobeSt.com article. Terms of the acquisition were not disclosed.

"Sacramento, due to its proximity to San Francisco and other areas of Northern California, ranks as one of the most dynamic markets in North America," Mark Rose, Chair and CEO of Avison Young, said in a statement. "Although Avison Young already has a presence in the region, we are now able to offer brokerage services, a core element of our full-service model. With the acquisition of Aguer Havelock, we have once again strategically expanded in a key market, California's state capital, that has a strong demand for our Principal-led, client-centric business model."

Over the past five years, Avison Young has grown from 11 to 58 offices and from 300 to more than 1,500 real estate professionals across Canada, the U.S., and in Europe.

For more news and information visit Blumberg Capital Partners.

Avison Q1 Analysis Shows Manhattan Rates Soaring

Avison Young, the Toronto-based commercial real estate services firm, released its first quarter 2014 New York office market analysis, which shows that Manhattan office leasing is on pace to exceed the record levels achieved in 2013. According to the company's research, demand for class A office space has boosted rents in the market by an average of $5 per square foot. Avison Young's analysis shows healthy growth consistent with the recovering job market, as 18 deals were inked during the first quarter with starting rents in excess of $100 per square foot, compared with only 13 such deals during the same period a year ago.

"As the unemployment rate in New York City continued to drop during the first quarter, reaching 7.8%, we are seeing continuous demand for high-quality office space in the borough, particularly from the growing technology and media industries," said Arthur Mirante, Avison Young Principal and Tri-State President, in a company statement. "With new leases accounting for seven of the top 10 transactions during the quarter, Manhattan has shown encouraging signs of growth from a diverse group of new market players, and we've seen the immediate effect on asking rents."

"Tenants searching for space in Midtown South are faced with significantly fewer options than even a few months ago," said Avison Young Principal John Ryan. "Large deals completed in the area during the first quarter have solidified the district's position as the tightest submarket in Manhattan."

For more news and information visit Blumberg Capital Partners.

Toronto's Avison Young Acquires McShea & Company

McShea & Company, a full-service real estate services company founded in 1983 and operating throughout the Washington metropolitan area, has been acquired by Avison Young, a a Toronto-based commercial real estate firm seeking to expand its presence in the region. The change in ownership adds 150 employees to Avison Young's Suburban Maryland operations, and makes Avison one of the largest real estate firms in Suburban Maryland and the Washington Metropolitan Area. According to a Washington Business Journal article, Avison Young has been seeking to beef up its D.C. presence for past few years through a mixture of acquisition and recruitment, hiring former Grubb & Ellis Managing Director Keith Lipton in 2009 to help it open a new office in the District.

The acquisition means that McShea & Company founders Tim McShea and Jack McShea, along with Len Mongeon, Laurie Craft, Steve Lynch and Bob Dickman become Principals of Avison Young. Tim McShea and Mongeon also become Co-Managing Directors of the Suburban Maryland office and will manage the day-to-day operations of the office and service new and existing clients. Craft also becomes Director of Commercial Property Management, and Lynch becomes Director of Residential Management. Jack McShea's and Dickman's responsibilities will include client relations, new business development and brokerage transactions.

"We are very excited about the acquisition of McShea & Company, Inc. The acquisition of this highly regarded company represents the next step in our expansion strategy and will serve to create a deeper local presence in our rapidly growing DC Metro Region," Avison Young CEO Mark Rose said. "Tim, Jack, Len and the whole organization have a collaborative culture consistent with Avison Young's philosophy; our firms are an excellent fit culturally. Moreover, this acquisition is another example of a highly regarded independent firm that was heavily pursued by others, but recognized Avison Young's culture and structure as the right home for their clients and employees."

"We are thrilled to be joining a firm that places such a strong emphasis on being client-centric and culture-driven, and I am confident that our team's industry relationships and experience will support the company's growth objectives in the Washington, DC area," added Jack McShea. "We are looking forward to our new venture and working in this expanded platform with like-minded individuals."

For more news and information visit Blumberg Capital Partners.

Avison Young Acquires Ramsey-Shilling

According to a Los Angeles Business Journal article, Avison Young, Canada's largest independently-owned commercial real estate services company, has acquired LA-based Ramsey-Shilling Commercial Real Estate Services Inc., a full-service real estate brokerage firm. While the terms of the acquisition were not disclosed, the company did note that Ramsey-Shilling Chief Executive Christopher V. Bonbright and Ramsey-Shilling President Mark Evanoff will join Avison Young as principals. Also joining as principals are John Tronson, a Ramsey-Shilling principal who focused on the entertainment division and Michael Dettling, principal and director of Ramsey-Shilling’s health care group.

"We are delighted to add Chris, Mark, John, Michael and the Ramsey-Shilling team to our rapidly-growing Southern California and U.S. platforms,"said Mark E. Rose, Chair and CEO of Avison Young. "Chris Bonbright and his team have a solid market share in Hollywood, West Hollywood, the Westside and other key Los Angeles markets, and are market leaders serving healthcare providers and the entertainment industry."

Avison Young opened its first L.A. office in August 2011, with industry veteran Neil Resnick joining as a Principal to help launch the company's brokerage business in Southern California.

For more news and information visit Blumberg Capital Partners.