Our Latest Apartment Market Report for Glynn County

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Brunswick Apt.

Occupancy Trends 

Current research into the Brunswick apartment market indicates continuation of the favorable conditions reported in our May 2015 publication.    Occupancy levels remain high and rents continue to climb.

As of July 2016, average occupancy for the same six apartment complexes discussed in our previous report was 97%, unchanged from one year prior.  On an individual basis, occupancy at two of the complexes increased, two decreased, and two remained the same.  This information is presented in…..

Read Full Article:  Brunswick Apartment Market July 2016.  (It may take a minute to load.)

Author: Nancy Rivers

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Economic Drivers in the Golden Isles – Going Strong

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TOURISM:     By far the most important industry for the Golden Isles is tourism, which continues to see increases in the number of visitors each year.  Information obtained from multiple year editions of Georgia Trend Magazine indicates that the isles’ tourism has increased an average of 10% each year since 2010.  Visitors to the area during fiscal 2014 totaled 2.4 million, resulting in an economic impact of $1.1 billion and a record $5.3 million in lodging tax collections.  Eight of the 12 months during 2014 were record months.  And while not all lodging statistics are available for fiscal 2015, the President and CEO of the Golden Isles Convention and Visitor’s Bureau reported record numbers of visitors for 2015 as well.  The lodging sector grew by 12% from the previous year and ten of the 12 months in the year were all time records.

Milestones during 2015 that help bring about last year’s increases include the opening of a new welcome center on St. Simons Island, and the filming of several television projects and one major motion picture in the area.  The film, “Live By Night,” starring Ben Affleck…….

Read Full Article: Significant Demand Drivers in the Golden Isles of Georgia   (It may take a minute to load.)

Author: Nancy Rivers

Commercial Real Estate Update- Coastal Georgia

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Commercial Real Estate Coastal Georgia

 

 

 

 

 

 

 

Commercial Real Estate properties are broken down by size to create two different market analysis.

  • Buildings less than 10,000 square feet- Small Commercial Real Estate Market (SCRE)
  • Buildings greater than 10,000 square feet- Large Commercial Real Estate Market (LCRE)

72% of all Commercial Real Estate properties fall within the SCRE market, and the remaining are in the LCRE market.

The LCRE market tends to bring big numbers along with their sales transactions, due to their location within major metropolitan areas, and the shear size of the property lends to a higher purchase price.  Portfolios, REITS and major investors tend to play in this area.

The SCRE market is what Coastal Georgia typically falls within, and also where Driggers Commercial Group has built its knowledge, experience, and relationships in.  According to the National Association of Realtor’s 2015 3rd Quarter report:

 ”Sales of commercial properties during the second quarter rose 9.0 percent on a year-over-year basis. For the first half of the year, sales in REALTORS®‘ markets advanced 11.0 percent year-over-year.  With the shortage of available inventory reported as the number one concern for NAR members, price growth accelerated in SCRE markets during the second quarter of 2015, with properties trading at 6.6 percent higher average prices compared with the same period in 2014. The average transaction price increased from $1.7 million in the first quarter 2015 to $2.0 million in the second quarter 2015.”

With the increase in sales transactions and prices, Commercial Real Estate is on the rise again.  Look to Driggers Commercial Group as your Commercial Real Estate consultant throughout Coastal Georgia.

Author:  Robert Jahn

 

 

Warehouse scarcity in Savannah shows positive growth for Commercial Real Estate on the Georgia Coast

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Savannah Port

 

 

 

 

 

Thanks to Mary Carr Mayle from Business in Savannah for her article on the scarcity of Warehouse space in Savannah, GA.

Both the Brunswick and Savannah Ports are seeing unprecedented growth for the past several years, with 2015 breaking records again according to the Georgia Ports Authority.

This article speaks of the drop in vacancy rate.  The vacancy rate for warehouse and distribution center space at the end of the second quarter was 3.72 percent, the lowest since 3.54 percent in 2001. In 2009, the height of the recession for industrial real estate, Savannah’s warehouse vacancy rate was nearly 19 percent.

With this dramatic drop in vacancy, we can expect Commercial Real Estate Industrial Land to become a hot commodity as speculative or built to suit warehouse space begins development.

Driggers Commercial Group can assist with sales, leasing, site analysis and appraisal work throughout the Georgia Coast.  Contact us to gain more insight.

 

Author:  Robert Jahn

 

Housing Market is on Fire-New Home Starts Best in 8 Years

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Home Construction Pic

 

 

 

 

 

 

 

Business Insider author Akin Oyedele writes about the U.S. Housing market exploding and states the facts in his recent article, read it here.

All signs point to a strong Real Estate Market recovery.  Here in Southeast Georgia activity and pricing is on the rise as well.  Census Bureau data showed that housing starts surged 9.8% to an annualized pace of 1.174 million, a level not seen since July 2007.

“With a nearly 30% increase in housing starts compared to June of last year, the residential market recovery is here, and it is strong and sustainable,” said Peter Ciganik, managing director of GTIS Partners, in a note Friday.

There is also a strong increase in multi-family construction starts that coincides with the residential activity increase.  Inevitably, we will see the other arms of Commercial Real Estate begin to expand as well.

For those Commercial Real Estate investors looking to buy while there are still opportunities for up-side, contact Driggers Commercial Group for your Brokerage and Appraisal needs.

 

Author: Robert Jahn

Downtown Brunswick, GA- abundant leasing and sales activity for Commercial Buildings

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We are seeing a trend in downtown Brunswick, GA that we haven’t seen in many years…  Properties are selling, several in fact, and all within the past 120 days.

Downtown Brunswick Sales Data

 

 

 

 

 

Although the prices are not high, they appropriately reflect the condition the properties were in.  As with most real estate re-development, the cheap stuff goes first, it gets renovated, and then we see a general increase in property values.  This improvement of properties usually extends beyond the purchased properties to other adjacent buildings as those building owners feel the need to “keep up with the Joneses”.

In addition to these sales, several leases have been signed within the past 10 months in downtown Brunswick as well.

All of this activity bodes well for downtown.  With an influx of new businesses and existing businesses expanding, we hope and expect to see more of the same.  The properties that sold are being brought back to life and many that were once vacant will have new occupants.  Case in point, the buyers of 1600 Newcastle are investing heavily, adding a new roof, new HVAC, eight new windows, all new interior finish including ADA compliant restrooms, and more.

Contact Driggers Commercial Group as your Commercial Real Estate experts. We specialize in sales, leasing, and appraisals for Commercial Properties.

See below for Harlan Hambright’s new “Brunswick Stewdio” and examples of Oyster Design Co’s products and workspace.

Brunswick Stewdio minicard_template_us Oyster Design Co2

Resurgence for Downtown Brunswick, Georgia- Redevelopment Incentives

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Downtown Brunswick

 

It’s been happening in major metropolitan cities acreoss the U.S. for a while.  Businesses and People are moving back downtown.  The american dream of a 4 bedroom home, 2 car garage, in some far-out suburb from town is no longer appealing.

Several factors can be attributed to the transition.  They are as simple as cost of gas-traffic and commute times.  Or macro themes such as population per household decline.  Either way, our culture is trending back to an urban oriented lifestyle, with more attention to active lifestyles, walkability and centralized community.

Downtown Brunswick, GA appears primed for redevelopment.  The College of Coastal Georgia, the Federal Law Enforcement Training Center, Southeast Georgia Health System and the Brunswick Port are all nearby and provide economic and population boosts for the area.  Multiple properties are available for sale, some need rehabilitation, and we are seeing an increase in commercial building tenant occupancy.

The Brunswick Downtown Development Authority offers numerous incentives for property owners:

  • Facade Grants to assist with signage and exterior building improvements.
  • State and Federal Tax incentives for rehabilitated historic properties.
  • A low interest loan fund for building improvements.
  • An Enterprise Zone designation, which allows for varying levels of property tax exemption, and exemption from a variety of Government fees.

With these incentives in place, the property investor and developer have less exposure and risk to take on a new and exciting project.  Driggers Commercial Group can assist with property identification, financial analysis, leasing, and zoning/rezoning matters.  Contact us as your local commercial real estate experts.

 

Author:  Robert Jahn

 

Real Estate Investing- Hard Work or Hardly Working?

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Christmas Money

 

As we enter the Holiday Season, Americans are spending money like crazy.  Some will spend wisely and others not so much.  As we enter the end of 2014 and begin to look forward to 2015, some of us will also begin to think about taxes, income and investments as well.  There’s nothing like some free time after a spending spree to analyze one’s finances.

I was going to take some time and discuss the different pathways to real estate investment, but found an article from BiggerPockets.com that does an excellent job of presenting how to think about real estate investment.  If you own real estate or are thinking about owning real estate as an investment, then this article is for you.

As always, it helps to have an expert on your side when you actively manage/own real estate, or are thinking about getting into real estate investment.  Driggers Commercial Group, Inc. can help you navigate the many paths to passive income.  Our years of experience in Coastal Georgia Real Estate allow us to give you the edge on the right purchases to make.

 

Author: Robert Jahn

 

Brunswick, GA Port Has Record Breaking Year

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Brunswick Port

 

The Georgia Ports Authority held its annual “State of the Port” luncheon on October 14th at the Jekyll Island Convention Center.  To say the room had a positive vibe would be an understatement, with a record breaking year, the room was buzzing with energy.

Here are the highlights of the record breaking numbers for 2014:

  • Total Tonnage increased by 12%.
  • Vessel Calls increased by 7% for a total of 636 calls.
  • Bulk Cargo increased by 12%.
  • Breakbulk Cargo increased by 12%.

Brunswick.GA remains the 2nd busiest Auto Port in the United States (Baltimore, MD is #1) and if 2014 numbers continue into next year, then Brunswick is posed to take the #1 spot in 2015.

Glynn County commercial real estate could see benefits in the near future as well.  The Brunswick Port has 742 acres of land permitted for expansion.  This puts the Brunswick Port in a unique position, as many other Ports are confined to already densely developed metropolitan areas which do not offer room for expansion and development.  In addition to the land available at the Port, Glynn County has an abundance of commercial land surrounding the area and I95 Exit 29 to offer opportunities for companies and vendors that do business with shipping industry.

It was great to hear the impact the Brunswick Port has on Coastal Georgia and the potential positive economic trends our community will continue to see.

 

Author: Robert Jahn

 

Brunswick, Georgia Commercial Real Estate seeing new development, big box and neighborhood concept.

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walmart neighborhood market

 

 

There has been plenty of speculation on the future of retail within the Commercial Real Estate Industry, and the media has begun to contribute to the conversation as well.  A recent article from Business Insider discusses “The Fate of America’s Dying Supercenters”.  The article raises issues facing the big box retail centers are facing, such as Americans driving less, demographics are moving to smaller urban centers away from suburbs, and larger retailers are meeting new demand with smaller stores.

Brunswick, GA is seeing an interesting combination of recent development which has both the old and new retail strategies in place.  A Walmart Neighborhood Market is under construction within the city limits at the busy intersection of Community Rd. and Altama Ave.  This 40,000SF store will only be 2 miles from its existing Walmart Supercenter.  Walmart deems the Neighborhood Market stores as “quick-in, quick-out, small basket stores” which meet a different demand than the Supercenter shopper.

In other Commercial Real Estate development, just outside the Brunswick city limits, the 42 acre Canal Crossing Shopping development will have a Sams Club and two other major anchors along with several other smaller commercial spaces.  This development is near the I95 exit 38 interchange and the Brunswick Golden Isles airport.  At nearly 135,000SF, the Sams Club is quite the opposite of the Walmart Neighborhood Store, and there will be an additional 200,000SF available for the other anchors and retailers.  This additional square footage does not take into account the multiple outlots that will be available for commercial development as well.

It will be interesting to see how both of these commercial developments are received by the community, and what impact they will have on existing retail development.  Either way, this activity will provide and immediate impact on jobs and the economy for the area, which is beneficial to all.

 

Author: Robert Jahn