CPN - September 2008 - (Page 30) INDUSTRY PULSE DEVELOPMENT Better to Build As Corporations Cut Costs, Build-to-Suits Remain Popular By Amanda Marsh R ising fuel and construction costs and the tough financing market have made development difficult, but corporations in search of new office space continue to like build-to-suits. “The desire will never go away,” declared Highwoods Properties Inc. president & CEO Edward Fritsch.“(Corporations) prefer their needs and personality.” That is good news for develop- ers, as the build-to-suit risk profile has pushed speculative development out of the first-choice slot,said Drew Sanders, senior vice president of national development for Duke Realty Corp. Additionally, the difficulty of financing development projects has become an advantage for larger developers with access to capital and lines of credit. For stories on more business lines, visit www.cpnonline.com/specialties. Still Breaking Ground (office groundbreakings) 140 Millions of Square Feet 120 100 80 60 40 20 0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 Build-to-Suit Speculative (industrial groundbreakings) 160 140 120 100 80 60 40 20 0 '97 '98 '99 '00 '01 '02 Millions of Square Feet Build-to-Suit Speculative As a consistent capital provider under a range of real estate market conditions, ORIX today is actively seeking opportunistic investments. '03 '04 '05 '06 '07 '08 Source: Grubb & Ellis Co. Rockefeller Group Development Corporation OUR CAPITAL STRUCTURES: Opportunity Fund Investments Property/Portfolio Acquisitions Debt & Structured Finance Please contact: David R. Brown President & CEO david.brown@orix.com 312.669.6020 Rockefeller Group Development Corporation is pleased to announce that it has been selected by the U.S. Department of Veterans Affairs (VA) as the developer of a new build-to-suit 84,000 square foot medical outpatient clinic for lease to the Veterans Health Administration at Seagate Corporate Center Oceanside, California Coldwell Banker Commercial Almar Group ONCOR International are exclusive leasing agents for Seagate Corporate Center. Carpenter/Robbins Commercial Real Estate, Inc. represented the VA. Margaret DeWoskin Whole Loan Purchases Development JVs Chief Investment Officer maggie.dewoskin@orix.com 312.669.6414 The firm has also acquired 57 acres in Salt Lake City, Utah to develop and lease 6 industrial buildings totaling 930,000 square feet. Commerce CRG represented Rockefeller Group Development Corporation in the transaction. Tom McCormick, SIOR Senior Vice President and Regional Development Officer, Western Region Rockefeller Group Development Corporation 949-468-1800 tmccormick@rockgrp.com rockgroupdevelopment.com The Rockefeller Group Companies: Rockefeller Group International Rockefeller Group Development Corporation Rockefeller Group Investment Management Rockefeller Group Business Centers Rockefeller Group Technology Solutions ORIX Real Estate Capital, Inc. 100 North Riverside Plaza, Suite 2100, Chicago, IL 60606 312.669.6400 www.orix.com OREC IS A 100% WHOLLY OWNED SUBSIDIARY OF ORIX USA CORPORATION WHOSE PARENT IS ORIX CORP., AN $80 BILLION FINANCE COMPANY. Comprehensive Real Estate Services and Solutions TM 30 COMMERCIAL PROPERTY NEWS • September 2008 • www.cpnonline.com http://www.cpnonline.com/specialties http://www.orix.com http://rockgroupdevelopment.com http://www.orix.com http://www.cpnonline.com
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