Both the commercial and residential real estate sectors are stable and poised for growth in the spring of 2016. This article focuses on the commercial side of the market. Many readers are probably tired of reading about the Great Depression's affect on the real estate market years after the economy began expanding again. The good news is that in 2016 we are at the tail end of that affect. However, 2015 was a year of cleaning up loose ends in the commercial sector.
According to J. Walter Allen, senior managing director of Integra-Memphis, little or no class A office space remains available in the Memphis area and the retail sector is beginning a growth phase. As recent as 2015, Memphis was still working through a lot of commercial REO sales and plenty of foreclosure sales. Today, most of the valued commercial inventory has been cleaned out. This leaves Memphis poised for a growth phase.
Lambda Alpha International participated in the Land Economics Weekend in Memphis April 21-23. One project they visited is the Tennessee Brewery where demolition and clean up is well underway and new construction is expected to begin within weeks. The new construction will include office, commercial, and residential units, as well as a more than 300-space parking garage. Some prominent tenants are already on board.
Developers of the proposed mixed-use project in Lakeland made a preliminary presentation of the concept in early April. Previously known as the Lakeland Factory Outlet Mall located off Interstate-40 and Canada Road, The new project is currently known as The Lake District. As recently as 2011, the redevelopment proposal was to remodel the 30-acre property into an updated outlet mall.
Developers concluded that the limited 30-acre site was insufficient to attract national anchor brands and that the outlet mall concept is outdated. The new vision is for a 120-acre site that will include two hotels, an art center, a big box district with a potential grocery anchor, office space, a main street with restaurants and retail, a child learning use facility, parks, playgrounds, bike/jogging trails, and housing options that include townhomes and apartments. Mixed use is the wave of urban development.
With 2015 freshly behind us and the commercial market beginning an expansion phase, it's no surprise that multiple construction permits are being applied for. Recent building permits makes for a diverse mix of food, beer, fitness, and retail.
This the early phase of commercial expansion. Expect more plans to be unveiled later in 2016.
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