A Real Estate Publication of the St. Tammany News • Friday, August 26, 2011

Smart floor plan, convenient location, award winning school district, and a fantastic

value –you are home in this spacious 4 bedroom 2.5 bath, 2 car garage home on a huge,tree shaded cul-de-sac lot. Formal areas as well as family room, with fire place. Cleverkitchen with top line updated appliances, private master suite, enhanced securitysystem, meticulously maintained. What are you waiting for? Call Donna Guidry atColdwell Banker TEC Realtors, 985-649-6300

OOOOppeenn HHoouusseess::ppeenn HHoouusseess::KKEELLLLEERR WWIILLLLIIAAMMSS221155 CCHHRRIISSTTIINNEE CCTT.. -- SSUUNNDDAAYY 11--33 PPMM

PPRRUUDDEENNTTIIAALL GGAARRDDNNEERR RREEAALLTTOORRSS112255 CCAAWWTTHHOORRNNEE -- SSUUNNDDAAYY 220044 PPMM

This home is presented by Donna Guidry and Coldwell Banker TEC

PAGE 2 BBRROOKKEERR EEAASSTT FRIDAY, AUGUST 26, 2011 ST. TAMMANY NEWS

Washington, DC, August 25, 2011

Commercial real estate vacancy rates areflat and projections for growth have beenmoderated because economic growth and jobcreation have been weaker than expected, butmodest improvements are expected over thecoming year, according to the NationalAssociation of Realtors®.

Lawrence Yun, NAR chief economist, saidthe weakening economy will slow the growthin demand for space. “Disappointing econom-ic growth in recent months means a slowerrecovery for most of the commercial realestate sectors, although multifamily housingcontinues to benefit from pent-up demandresulting from an abnormal slowdown inhousehold formation in recent years,” he said.“Many young people, who normally wouldhave struck out on their own from 2008 to2010, had been doubling up with roommatesor moving back into their parents’ homes.However, they’ve been entering the rentalmarket as new households in stronger num-bers this year. As a result, apartment vacancyrates are declining and rents are rising atfaster rates.”

Growth in the Gross Domestic Productslowed to 0.4 percent in the first quarter and1.3 percent in the second quarter, much lowerthan the 4 to 5 percent expansion neededafter a recession.

“A healthy recovery is already occurring inthe multifamily sector, with average apart-ment rent expected to rise 2.5 percent thisyear and another 3.2 percent in 2012,” Yunsaid. “Normally, rising rents correspond to ris-ing home prices. However, this isn’t happen-ing in this recovery because buyers are con-strained by unnecessarily restrictive mort-gage underwriting standards, so the underly-ing demand isn’t drawing inventory downquickly enough to support price growth.”

Looking at commercial vacancy rates fromthe third quarter of this year to the third quar-ter of 2012, NAR forecasts vacancies todecline 0.3 percentage point in the office sec-tor, 0.6 point in industrial real estate, 0.7 pointin the retail sector and 0.9 percentage point inthe multifamily rental market.

The Society of Industrial and OfficeRealtors®, in its SIOR Commercial Real EstateIndex, an attitudinal survey of 266 local mar-ket experts,1 shows an erosion in market con-ditions. All regions posted declines except theWest.

The SIOR index, measuring the impact of10 variables, declined 2.6 percentage points to54.9 in the second quarter, following a stronggain of 6.8 percentage points in the first quar-ter.

The SIOR index remains well below thelevel of 100 that represents a balanced mar-ketplace, but had seen six consecutive quar-terly improvements prior to last quarter’sdecline. The last time the index was at 100 wasin the third quarter of 2007.

Fundamentals are largely unchanged, withvacancy rates relatively flat. Eight out of 10respondents said office and industrial leasingactivity is below historic levels, and seven outof 10 said asking rents are below a year ago. Itremains a tenant’s market, with many tenantsbenefiting from moderate concessions andrent discounts.

Construction activity is nearly nonexistentin most areas, and it is a buyer’s market fordevelopment acquisitions. Local experts saidcommercial office and industrial prices arebelow construction costs in 83 percent of mar-kets.

NAR’s latest COMMERCIAL REALESTATE OUTLOOK2 offers projections forfour major commercial sectors and analyzesquarterly data in the office, industrial, retailand multifamily markets. Historic data formetro areas were provided by REIS, Inc.,3 asource of commercial real estate performanceinformation.

OFFICE MARKETSVacancy rates in the office sector are fore-

cast to fall from 16.6 percent in the third quar-ter of this year to 16.3 percent in the thirdquarter of 2012.

The markets with the lowest office vacan-cy rates currently are Washington, D.C., with avacancy rate of 8.6 percent; New York City, at10.1 percent; and Long Island, N.Y., 13.0 per-cent.

Office rents are expected to rise 0.8 percentin 2011 and another 1.5 percent next year. Netabsorption of office space in the U.S., whichincludes the leasing of new space coming onthe market as well as space in existing proper-ties, is projected to be 28.3 million square feetthis year.

Industrial MarketsIndustrial vacancy rates are likely to

decline from 12.7 percent in the current quar-ter to 12.1 percent in the third quarter of 2012.

At present, the areas with the lowest indus-

trial vacancy rates are Los Angeles, with avacancy rate of 5.5 percent; Orange County,Calif., 6.2 percent; and Miami at 8.9 percent.

Annual industrial rent is expected decline0.9 percent this year before rising 2.0 percentin 2012. Net absorption of industrial spacenationally should be 47.8 million square feetthis year.

RETAIL MARKETSRetail vacancy rates are projected to

decline from 12.9 percent in the third quarterof this year to 12.2 percent in the third quarterof 2012.

Markets with the lowest retail vacancyrates currently include San Francisco, 3.8 per-cent; Northern New Jersey, 6.1 percent; andthree markets at 6.4 percent each: LosAngeles; Long Island, N.Y.; and San Jose, Calif.

Average retail rent is forecast to decline 0.4percent this year, and then rise 0.7 percent in2012. Net absorption of retail space is seen at5.6 million square feet this year.

MULTIFAMILY MARKETSThe apartment rental market – multifami-

ly housing – should see vacancy rates dropfrom 5.5 percent in the current quarter to 4.6percent in the third quarter of 2012.Apartment vacancies below 5 percent gener-ally are considered a landlord’s market.

Areas with the lowest multifamily vacancyrates presently are Minneapolis, 2.5 percent;New York City, 2.8 percent; and Portland, Ore.,at 2.9 percent.

Multifamily net absorption is likely to be237,700 units this year.

The COMMERCIAL REAL ESTATEOUTLOOK is published by the NARResearch Division for the commercial com-munity. NAR’s Commercial Division, formedin 1990, provides targeted products and serv-ices to meet the needs of the commercialmarket and constituency within NAR.

The NAR commercial components includecommercial members; commercial commit-

tees, subcommittees and forums; commercialreal estate boards and structures; and theNAR commercial affiliate organizations –CCIM Institute, Institute of Real EstateManagement, Realtors® Land Institute,Society of Industrial and Office Realtors®, andCounselors of Real Estate.

Approximately 79,000 NAR and instituteaffiliate members specialize in commercialbrokerage services, and an additional 171,000

members offer commercial real estate as asecondary business.

The National Association of Realtors®,“The Voice for Real Estate,” is America’slargest trade association, representing 1.1 mil-lion members involved in all aspects of theresidential and commercial real estate indus-tries.

FRIDAY, AUGUST 26, 2011 BBRROOKKEERR EEAASSTT PAGE 3ST. TAMMANY NEWS

Slowdown Impacts Commercial Real Estate Markets, Modest Improvement Seen

(NAPSI)—The kitchen has always beenthe heart of the home—a place where thefamily socializes and entertains friends.It’s no wonder a kitchen remodel occupiesfirst place on many homeowners’ wish list,especially at a time when families arespending less time dining out and moretime at home. Unfortunately, it’s also oneof the most expensive and time-consum-ing home improvement projects a familywill undertake, ranging from $17,000 to$20,000 for a basic kitchen remodel.

“Since the kitchen occupies a highlyvisible space in the home, it’s understand-able that families want it to reflect theirstyle and personality. But unfortunately, atraditional kitchen remodel can mean abigger investment of time and moneythan many families can handle,” says AnnGearty, Rust-Oleum senior brand manag-er. “Fortunately, now there’s an affordablealternative. For less than $500, homeown-ers can update their old, outdated cabinetsand countertops and make them lookbrand new thanks to breakthrough coat-ing technologies.” Here’s how:

Start with the cabinets: They are the

focal point of any kitchen and will set thetone for the look and feel of the entireroom. Instead of replacing or refacing, it’seasy to transform worn, outdated cabinetsto the look of beautiful handcrafted cabi-nets with Rust-Oleum CabinetTransformations. The refinishing systemprovides you with all the tools you need togive your cabinets a fresh, new look forunder $150—without the stripping, sand-ing or priming associated with cabinetpainting. It works on all types of cabi-nets—wood, melamine, laminate andmore. Plus, it is available in 70 beautifulfinishes and is guaranteed to last for years

to come.Rethink your current countertop: You

don’t have to replace your countertop toget a sleek new look. With new Rust-Oleum Countertop Transformations, youcan transform your worn or damaged lam-inate countertops at a fraction of the costof replacement. Available in a convenientkit for $250, the innovative coating sys-tem comes with all the tools needed totransform your outdated countertops tomirror the look of natural stone—likegranite. The coating was put throughextensive testing to ensure it could standup against daily wear and tear. It’s avail-able in five different colors, and is so easyto use, the entire project can be complet-ed in less than a weekend.

Don’t forget the details: It’s easy tomake your old cabinet knobs and pullslook brand new with a few coats of spraypaint. Try a spray paint such as UniversalOil-Rubbed Bronze to mimic one oftoday’s hottest metal finishes.

For more information on alternatives tothe traditional kitchen remodel, visitwww.rustoleumtransformations.com.

PAGE 4 BBRROOKKEERR EEAASSTT FRIDAY, AUGUST 26, 2011 ST. TAMMANY NEWS

A Complete Kitchen Makeover For Under $500

You don’t have to replace your countertopto get a sleek new look.

FRIDAY, AUGUST 26, 2011 BBRROOKKEERR EEAASSTT PAGE 5ST. TAMMANY NEWS

PAGE 6 BBRROOKKEERR EEAASSTT FRIDAY, AUGUST 26, 2011 ST. TAMMANY NEWS

available anywherein the world

the.

sttam

man

ynew

s.com

ST. TAMMANY NEWS FRIDAY, AUGUST 26, 2011 BBRROOKKEERR EEAASSTT PAGE 7

PAGE 8 BBRROOKKEERR EEAASSTT FRIDAY, AUGUST 26, 2011 ST. TAMMANY NEWS