Friday, September 29, 2017

Why Industrial Real Estate Is Flourishing This Year


The industrial real estate world has never seen a more lucrative period. In just the first quarter of 2017, industrial property sales grew by 3%, which is about a $13.9 billion-dollar increase. With numbers this astounding, it is obvious that the industrial real estate world deserves the attention it is getting. At NAI Isaac, of Lexington, Kentucky, we want to show you why industrial real estate is flourishing this year.

Online Businesses


The main reason that industrial real estate is flourishing this year is the unprecedented growth of web-based companies and the shift to online shopping. More so than ever before, online retailers and distributors are expanding their businesses and more and more online businesses are opening. Because these businesses need somewhere to store and house their items, industrial real estate is in high demand. Many of these newer companies start out by renting smaller warehouses as startup businesses, and when their business expands they rent more industrial spaces in other areas or look for larger spaces to rent. In addition, businesses that were traditionally “brick-and-mortar retailers” are also moving towards online sales. Because of this shift, these businesses, which used to ship from store to store or from store to customer, are in need of distribution spaces to ship products directly to customers from their distribution centers rather than having all of their inventory in stores.

Shipping Times


Many companies are drawing in customers by offering free same-day, next-day, and two-day shipping. For this to be a plausible business plan, companies require warehouses that are fully stocked with product in many different areas of the country. Rather than having one main distribution warehouse, companies are now choosing to operate out of multiple smaller locations that make shipping and delivery options easier and more accessible to customers.

Inventory Storage


Going along with quicker shipping times and the move towards online commerce, companies are looking for industrial spaces to help with storing their products in a more affordable way. Rather than buying expansive buildings, many online companies are choosing industrial spaces with smaller square footage but with taller ceilings. Rather than spreading their products out over large areas, companies are choosing to store their products vertically to save money.

Online businesses will continue to grow and here at NAI Isaac, we want to help you make the most of these real estate trends. At NAI Isaac, located in Lexington, Kentucky, we pride ourselves on our knowledge and experience in the commercial and industrial real estate world. In addition to our outstanding customer satisfaction, NAI Isaac specializes in many real fields like acquisition and disposition, industrial services, property marketing, and various other areas. If you are ready to get involved in the flourishing industrial real estate world, NAI Isaac is who you need to call.

What You Need to Know About Investing in Big-Box Stores

Big-box stores were once a no-brainer when it came to investing in commercial real estate. It seemed like an obvious financial move to invest in such a thriving sector of business. However, with every passing day is appears that consumers are shifting away from big-box stores to more online forms of retail. Although the retail sector of business is still dominating and growing more and more by the minute, the way that consumers are conducting their business is transforming. Therefore, investing in big-box stores is now a decision that requires a little more deliberation than previously assumed.

It should be of no surprise that almost all aspects of our culture are being revolutionized by the internet. All business and companies, not just big-box retailers, are having to adapt to this new form of consumerism. Unfortunately, it has been difficult for some business to maintain their pace amongst all of this online change. Many big-box stores have suffered in the face of this changes and had to make serious decisions in light of their consumer reports. Some companies even began to close down some of their chain stores that weren’t attracting as much revenue as their more competitive locations in hopes of isolating and growing those more populated areas. Stores such as Nordstrom and Kohl’s, which seem to be functioning just fine on the exterior, had to make major cuts many of their locations.

On the flip side, businesses that had expanded their online presence were beginning to dominate the realm of consumerism. Take for example Amazon, a company with a thriving digital platform that is commanding Internet retail and is only expecting to continue on this profitable path. This has meant that many big-box companies are stuck at a cross-roads to determine if it is in their best interest to attempt digital advancements in their company. Wal-Mart decided to make an attempt at E-commerce and purchase an online retailer called Jet.com. This website actually aligned quite similarly with Wal-Mart’s approach to savings and lower pricing, which really only reiterated Wal-Mart as a big-box company and moved consumers away from physical stores and further into digital commerce.

A majority of big-box stores seem to struggle with their online presence, which is only hurting them in the long run. From an investing standpoint, we would recommend analyzing the company’s technological plan and strategies to see if their are going to be successful in the transition from primarily physical commerce to primarily E-commerce. This does not mean that you should avoid investing in big-box stores, but rather to be conscious of the trends in retail and seeing if these stores will be competitive online.

To see if investing in a big-box company is a financially savvy decision for you or for more information on commercial real estate and industrial real estate, come see us at NAI Isaac. We are dedicated to serving you in a way that is both customized and dependable. We are located in Lexington, Kentucky and serve the surrounding area.

Tuesday, September 19, 2017

NAI Isaac Welcomes Compass Municipal Advisors to Corporate Plaza in Lexington, Kentucky

NAI Isaac welcomes Compass Municipal Advisors, LLC to Corporate Plaza in Lexington. The company will occupy 3,558 SF on the tenth floor.  Compass Municipal Advisors, LLC is an independent municipal advisory firm with offices in Lexington and Louisville, Kentucky and Columbia, South Carolina.  They assist local, regional and state governments as well as non-profit entities in a wide variety of financial needs including, but not limited to, financial and capital planning, debt issuance and management, and investment management services. For more information, visit their website.  Anne Kilcoyne, CPM, Senior Property Manager with NAI Isaac, represented the Landlord during the lease transaction.  


Thursday, September 14, 2017

NAI Isaac Welcomes Kentucky Lions Eye Bank to Griffin Gate Plaza in Lexington, Kentucky

NAI Isaac Commercial Properties welcomes Kentucky Lions Eye Bank to Griffin Gate Plaza, located at 1510 Newtown Pike in Lexington, Kentucky. Kentucky Lions Eye Bank is a non-profit charitable organization that restores sight through corneal transplant, ocular research and medical education.  For more information, visit their website.  Paul Ray Smith, Executive Vice President and Jim Holbrook, Associate with NAI Isaac represented the landlord during the lease transaction.  


Monday, September 11, 2017

NAI Isaac Brings United States Postal Service Back to Corinth, Kentucky


NAI Isaac is happy to announce the re-opening of a United States Postal Service in the city of Corinth, Kentucky.  The city has been without a post office for over 18 months.  The new USPS will be located at 315 Owenton Road.  Jim Holbrook, Associate with NAI Isaac, represented the USPS during the lease transaction.  

Friday, September 8, 2017

NAI Isaac Releases Lexington, KY CRE 2017 Mid-Year Market Report


The Lexington commercial real estate market was mostly positive during the 1st and 2nd quarters of 2017 with an impressive vacancy decrease in the Industrial market which already had a low vacancy rate at yearend 2016.  Low Industrial vacancy is a nationwide trend that is likely tied to the growth of internet shopping and the need for more warehouses closer to various customer markets for companies selling products. There was a smaller decrease in vacancy within the Retail sector that also had a low vacancy rate at yearend 2016. Fluctuations within Suburban Office and CBD Office sectors demand and higher vacancy rates despite the lack of speculative construction continue to indicate those sectors are still "right-sizing" with companies moving to more open floor plans with less square footage per employee. Further impacting the office market is an increase in office tenants seeking non-traditional office space, particularly in the tech and marketing segment.

Market rental rates for all commercial sectors have remained stable over the past 6 months and are expected to remain stable through yearend 2017 with the likelihood of Industrial rent increasing and the possibility of Retail rent increasing.  


-Al Isaac, President



Thursday, September 7, 2017

Why You Should Invest in Industrial and Retail Space in Lexington, KY

Known for basketball, horses, and rolling fields of bluegrass, Lexington, Kentucky is a historic city with a rich and diverse history. Let NAI Isaac show you a few highlights of this spectacular city that will help you understand why you should invest in industrial and retail space in Lexington, KY.

Heart of the Bluegrass



Founded in 1775, 17 years before Kentucky was even a state, Lexington was originally Finecastle County, Virginia. After the victory in the battles of Lexington and Concord, the area was renamed Lexington. Located in Fayette County, Lexington is the second largest city in Kentucky and the 60th largest city in the US. With a population of just under 318,500 people, this city is bustling with activity. Consisting of 285.5 square miles of land, the population density is around 1,000 people per square mile. Because Lexington is also considered part of the Lexington-Fayette Metropolitan Area, which includes Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford county, the MSA population is around 500,500 people. In Lexington, there are around 126,000 households. 43.5% of these households are composed of couples, and 27.3% are households with children under the age of 18. The median income for a household in the city is around $50,000.

Economy



Filled with the bustle of downtown life, the southern charm that Kentucky is known for, and the diversity of people because of the colleges, Lexington is truly a unique and exciting city. Lexington is one of the most stable economies in the nation. With strength in manufacturing, technology, and entrepreneurial businesses, the unemployment rate in Lexington is only 3.7%, which is lower than many cities of comparable size. Home to many large companies, like Xerox, Lexmark, IBM, and two colleges, the University of Kentucky and Transylvania University, the economy and population of Lexington has been consistently on the rise.

Why Choose Lexington



As you can see from the economic overview of the city, Lexington is thriving. Because this city houses the largest university in the state, the diversity of Lexington has grown exponentially, and continues to grow along with the population. This ever-growing city is already business oriented, so industrial and retail properties are an excellent investment. Because many people graduate from the universities and then stay in the city, new businesses are always popping up in the area and then expanding from there.

At NAI Isaac, serving Lexington and all the surrounding areas, we specialize in the leasing and buying of commercial and industrial properties. We pride ourselves on both our customer satisfaction and wide range of real estate experience. Specializing in numerous real estate areas, our team of trained and experienced professionals can help with all of your real estate needs. If you are interested in investing in industrial and commercial real estate in Lexington, Kentucky, contact NAI Isaac today.

Tuesday, September 5, 2017

NAI Isaac Releases Lexington, KY CRE 2017 Mid-Year Market Report

The Lexington commercial real estate market was mostly positive during the 1st and 2nd quarters of 2017 with an impressive vacancy decrease in the Industrial market which already had a low vacancy rate at yearend 2016.  Low Industrial vacancy is a nationwide trend that is likely tied to the growth of internet shopping and the need for more warehouses closer to various customer markets for companies selling products. There was a smaller decrease in vacancy within the Retail sector that also had a low vacancy rate at yearend 2016. Fluctuations within Suburban Office and CBD Office sectors demand and higher vacancy rates despite the lack of speculative construction continue to indicate those sectors are still "right-sizing" with companies moving to more open floor plans with less square footage per employee. Further impacting the office market is an increase in office tenants seeking non-traditional office space, particularly in the tech and marketing segment.
 
Market rental rates for all commercial sectors have remained stable over the past 6 months and are expected to remain stable through yearend 2017 with the likelihood of Industrial rent increasing and the possibility of Retail rent increasing.  

-Al Isaac, President