All of us in commercial real estate keep a super close eye on economic and demographic trends. At Lincoln Property Company Southeast, we pay particular attention to numbers that illuminate conditions in the South. Below, we’ll share with you recently released data indicating the region’s commercial real estate markets could be poised for a meaningful recovery.

From Moody’s Analytics, we present projections on future unemployment rates and personal income growth. From the federal government, we present statistics showing the robust population growth that several states in the region are experiencing. The data suggests unemployment rates will decline in keeping with the national trend while personal income growth may exceed national averages. Of particular note is the fact that Florida, Georgia and North Carolina rank in the top 10 in terms of annual state population growth, a trend that bodes well for their continuing economic development and recovery.

Lincoln Property Company Southeast has brokered the $3.5 million sale of Silver Star Logistics Center, a 147,389-square-foot manufacturing and logistics center in Orlando, Fla. An undisclosed buyer purchased the property from the seller.

Joe Rossi, senior vice president of investment services for Lincoln Property Company Southeast’s Orlando office, represented the seller.

The 7.32-acre property, which has been primarily vacant for more than three years, features 6,820 square feet of office space, 28-foot clear ceiling heights, an extensive sprinkler-security system, rail-spur service, covered loading docks and parking for more than 30 trailers. It is located less than three miles from downtown Orlando.

“We took over the sale and leasing assignment for this property in September 2011 and were able to quickly generate interest from potential tenants and buyers alike,” Rossi said. “This transaction represents a great deal for our client and is a strong testament to the demand for large warehouse buildings in our improving economy.”

In first-quarter 2012, Lincoln Property Company Southeast brokered 215,000 square feet of leases in the North Fulton office properties the firm is leasing on behalf of Equity Office. Michael Howell and Hunter Henritize, both vice presidents of office leasing for the firm, represented the landlord in the transactions.

The leases included the following deals:

• Amdocs signed a renewal and expansion totaling 34,990 square feet in Northwinds VI. Danny Granot of Joel & Granot represented the tenant.

• AIM Systems Inc. signed a renewal for 13,816 square feet in Northwinds VI. Rob Metcalf of Jones Lang LaSalle represented the tenant.

• NobleTek signed a new lease for 11,656 square feet in Northwinds VI. Bennett Gottlieb and John Thornton of CBRE represented the tenant.

• Brixmor signed a renewal for 9,496 square feet in Preston Ridge IV. Chad Koenig of NAI Brannen Goddard represented the tenant.

• Merck signed a new lease for 7,305 square feet in Northwinds II. Brannon Moss of Jones Lang LaSalle represented the tenant.

• Fullscope signed a renewal for 6,084 square feet in Northwinds III. Peter Webster of Davidson Webster represented the tenant.

• Adecco USA Inc. signed a renewal and expansion totaling 4,028 square feet in Northwinds III. Ben Onerdonk of Mohr Parnters represented the tenant.

In December, Equity Office awarded Lincoln Property Company Southeast contracts to manage 3.3 million square feet and lease 1.9 million square feet in suburban Atlanta. The management assignment covers buildings in the North Fulton and Northeast submarkets, and the leasing assignment is for buildings in North Fulton. Lincoln began servicing the contracts at the start of the year.

“We are extremely proud of the work that Hunter and Michael have done in their first 90 days of leasing the North Fulton properties,” said Tony Barlett, senior vice president for Lincoln Property Company Southeast. “They have assembled an outstanding mix of tenants and have already demonstrated the top-flight ability and know-how that Lincoln brings to this assignment.”

Lincoln Property Company Southeast has received an assignment from GE Capital Real Estate to manage, lease and sell a 388,367-square-foot portfolio of office/flex properties in Orlando, Florida. GE Capital Real Estate foreclosed on this portfolio of properties in 2010 and recently decided to change real estate service providers. The portfolio encompasses three properties:

• Airport Business Center. This six-building, 176,894-square-foot property is located only five minutes from the Orlando International Airport.

• Longwood Business Center. This seven-building, 130,868-square-foot complex is located directly adjacent to the South Seminole Hospital and is near downtown Orlando and the airport. It features multiple entry points from W SR434.

• North Lake Business Center. This 80,605-square-foot property offers rear-loading in many of the units and features 14-foot to 16-foot clear heights. With buildings featuring block and metal construction, the business center also has more than two parking slots for every 1,000 square feet of space.

“We are honored and thrilled that GE Capital Real Estate has entrusted us with this fantastic portfolio,” said Joe Rossi, Senior Vice President of Investment Services, who will handle the disposition assignment for Lincoln Property Company Southeast.

“These properties feature convenient access to many of the major points in the Orlando market and offer many amenities to tenants,” added Scott Stahley, Senior Vice President of Lincoln Property Southeast. “With our expertise and the appeal of the properties, we are confident we will bring tremendous value to our client.”

Lincoln Property Company Southeast has brokered two new long term leases in Lucerne Plaza, a 57,860-square-foot office building in downtown Orlando.

Keller Williams Realty signed a 3,864-square-feet lease, and Berman Property Management signed a 1,741-square-feet lease.

Jay Dixon, vice president for Lincoln, represented the landlord in the deals, while the tenants represented themselves.

Lucerne Plaza features easy access to Interstate 4 and the 408, and offers free surface parking and on-site management.

“Keller Williams Realty and Berman Property will make excellent tenants for Lucerne Plaza, and their becoming a part of this complex is indicative of the value we’re providing the landlord,” Dixon said.

The Southeast is still trying to shake off the effects of the Great Recession, as its manufacturing and distribution sectors, as well as its housing markets, have suffered big blows. Over the long haul, however, the region’s economy is set to outperform the nation’s as a whole

Orlando and Atlanta, two of the Southeast’s biggest cities and home to Lincoln Property Company offices, are good examples of the economic trends at work in the Southeast. Both cities have seen certain sectors shed jobs lately – in Orlando, the manufacturing segment has been hit with job losses, while in Atlanta, the financial services, government and hospitality industries have been reducing headcounts.

Over the long term, however, Orlando and Atlanta will outperform the national economy, Moody’s predicts. In Orlando, the improving economic performance will be fueled by increased labor force mobility, growth in the healthcare and education industries, and a spike in tourism. Meanwhile, Atlanta will be buoyed by growth in the transportation/logistics, business services and hospitality segments.

Ongoing Trouble in Central Florida

Some familiar bugaboos continue to haunt Orlando. Loan delinquencies have risen recently, and the housing market is still weak. The manufacturing sector has shed jobs, and a declining unemployment rate – the rate dropped from 11.4 percent in 2010 to 10.4 percent last year – is counterbalanced by more discouraged job seekers quitting the labor force.

“Another recession is not imminent, however,” writes Chris Lafakis, an economist at Moody’s Analytics. “A solid majority of industries are expanding payrolls, average hourly earnings are rising as fast as they are nationally, and growth in industrial production is slightly outpacing the nationwide average.”

Positive Signs

Two Orlando industries poised for substantial growth in the future are education and healthcare. The University of Central Florida is undertaking a number of expansion projects, and the Lake Nona medical complex continues to grow. Education and healthcare payrolls will increase at an average annual rate of 4.3 percent through 2015, substantially higher than the metro area average of 2.5 percent.

The new Legoland and some new attractions at Walt Disney World have boosted the local tourism industry, and another aid to the local economy will come with the FlexBus/SunRail project. SunRail is a 61-mile commuter train line that will use existing freight lines and is slated to begin operations in 2014. FlexBus is a busing system that will transport commuters from SunRail stops to retail and business districts throughout Central Florida.

SunRail and FlexBus will help the Orlando economy in a couple of ways. The preparation of the commuter line and the creation of bus stops will lead to construction jobs, and once they’re up and operating, SunRail and FlexBus will create a more mobile workforce and thus make Orlando a more appealing destination for businesses.

In 2012 and 2013, Orlando’s gross metro product should rise by 3.8 percent and 4.5 percent, respectively; the U. S. gross domestic product (GDP) will increase by 2.6 percent and 3.5 percent in those years, respectively.

The area’s unemployment rate should register at 10 percent for both 2012 and 2013. Those rates are higher than the projections for the nation as a whole, which are 9 percent for 2012 and 8.5 percent for next year.

Hard Times in Atlanta

The residential real estate market continues to trouble Atlanta – the number of homes that can be classified as REO is more than double the national average on a per-household basis – as does a weak banking sector and job losses in the government and manufacturing sectors.

However, the South’s biggest city still has some things going for it. An overall improving economy will boost the city’s substantial warehouse segment and increase activity at Hartsfield-Jackson International Airport, already the world’s busiest airport. This increased traffic will in turn boost hotel occupancy rates in Atlanta and increase jobs in the hospitality sector.

Furthermore, an improving national business climate will boost conference demand in Atlanta, which will have a positive impact on the city’s hotel and retail sectors.

Atlanta’s gross metro product will increase by 3.8 percent this year and by 5.2 percent in 2013, both of which are bigger increases than the U.S. GDP will experience in each of those years. At 9.6 percent, Atlanta will have a higher unemployment rate than the nation as a whole in 2012, but the city’s rate is forecast to drop to 8 percent in 2013, which is lower than the national forecast for that year.

Personal bankruptcies will increase from just more than 47,000 in 2011 to just less than 48,000 this year, but should begin to decline modestly next year.

Solid population growth and an overall business friendly climate will further aid the area’s recovery and enable it to out perform the national economy over the long haul, Moody’s says.

Lincoln Property Company Southeast has hired Chip Sipple as a senior analyst. Sipple, who was previously a senior investment analyst for Prudential Asset Resources, will analyze office, industrial and retail assets for acquisition opportunities and disposition assignments. His research also will also aid Lincoln in support of its various lines of business.

At Prudential, Sipple worked with the Special Servicing division on problem loan resolutions and REO disposition strategies. Prior to his stint with Prudential, he worked for Trimont Real Estate Advisors and Bullock and Mannely Partners.

“Chip was a stellar performer at Prudential, and we couldn’t be more excited to put his analytical skills and market knowledge to work for Lincoln and our clients,” said Tony Bartlett, senior vice president of Lincoln Property Co. “His keen insight and experience will help us deliver outstanding service to our clients and partners.”

Sipple received a Bachelor of Business Administration with concentrations in Finance and Real Estate from the University of Georgia’s Terry Business of College. He is a member of the Terry Real Estate Alumni Network’s Steering Committee and a member of the Terry School of Business Alumni Association.

Lincoln Property Company has brokered nearly 20,000 square feet of leases at Corporate Park, an 87,000-square-foot office complex in Orlando. Scott Gregory and Jay Dixon of Lincoln Property Company represented the landlord in the transactions.

The new tenants welcomed to the office park were Perry Becker (1,849 square feet), a landscape design firm represented by Craig Castor at Cresa Partners, and Harvard Jolly Architects (1,583 square feet).  The Lincoln team also negotiated three lease renewals with Kimley Horn and Associates (10,000 square feet), United Mortgage Partners (2,395 square feet) and Nursefinders (757 square feet).

The leases come shortly after Lincoln completed an extensive renovation of the office park. The improvements included  a new automated HVAC system; a web-based work order system; lobby upgrades consisting of new finishes, artwork, furniture, plantscapes, and a touchscreen tenant directory; and improved monument signage that enhances the visibility of the tenant’s names along Maguire Boulevard.

“We are extremely excited about the amount of activity we have been able to generate at Corporate Park,” said Gregory, vice president for Lincoln Property Company Southeast. “The renovations look great and the new monument signage will be an added benefit for new and existing tenants”.

Lincoln Property Company Southeast has won leasing assignments for four metro Atlanta office properties owned by OA Development and totaling nearly 450,000 square feet. OA Development is based in Atlanta and has more than two decades of experience in the commercial real estate industry. In the last 13 months, OA Development has acquired 400,000 square feet of commercial real estate properties.

The properties Lincoln will handle include:

• 2400 Lake Park Drive, a four-story, 104,000-square-foot building in Smyrna. The property is 82 percent leased.

• Lakeview 400, a 135,000-square-foot office park in Alpharetta consisting of two, one-story buildings. The park is 93 percent leased. The payroll services firm ADP is the anchor tenant.

• Northwoods Business Center, a 111,000-square-foot office park featuring three, one-story buildings in Norcross. The center is 70 percent leased.

• Bluegrass Promenade, a one-story, 99,000-square-foot building at 1200 Bluegrass Lakes Parkway in Alpharetta. The building is presently 76 percent leased.

Michael Howell and Hunter Henritze – both vice presidents, office leasing, for Lincoln Property Company Southeast – will oversee the leasing for OA Development.

“We believe that Lincoln Property Company Southeast’s experience, knowledge and talents are the perfect fit for these four properties,” said Brian Granath, a partner with OA Development. “We could not be more excited about the leasing future of these sites. They are in great hands.”

“We are honored by OA Development awarding us these contracts,” said Tony Bartlett, senior vice president of Lincoln Property Company Southeast. “I know Michael and Hunter will do a fantastic job with these properties and will create great value for OA Development’s assets.”

Lincoln Property Company Southeast has taken over the management and leasing of Silhouette Midtown, a 10-story, 116,600-square-foot office building located at 1447 Peachtree Street in the heart of Midtown Atlanta. Wells Fargo awarded Lincoln the assignment after a competitive bid.

Lincoln managed and leased the building, which sits between the High Museum and the Savannah College of Art and Design, from 2006 to 2008. During that time, the company oversaw an extensive renovation of the property, which was constructed in 1964. The $3.2 million renovation was an effective repositioning effort that included a full replacement of the building systems, a new façade with energy efficient glass and glazing, , extensive hardscape and landscape on the Peachtree Street frontage, a stylish new lobby, and distinctive murals painted along the south and west faces of the building, from which the building draws its name. Since its renovation, the boutique office space has been marketed to technology and creative firms.

The building is currently 74 percent leased and has one full floor totaling about 11,000 square feet available. Notable tenants include Digitas, TALK International and Farrington Design Group. David Danhof, vice president for Lincoln, and Sabrina Altenbach and Daniel Bamberger, leasing associates for the firm, will oversee the leasing of the property.

“Silhouette Midtown is a wonderfully unique, ‘jewel box’ office building,” said Tony Bartlett, senior vice president of Lincoln Property Company Southeast. “We could not be more excited about the chance to be associated again with this asset and work with an important client like Wells Fargo to create value for this assignment.”