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Franklin Street Expands Industrial Brokerage Team with Two New Hires

Franklin Street, a full-service commercial real estate brokerage firm, has added two new hires to its industrial services team. The new hires are Leslie Burke, director for tenant and landlord representation, and Michael Dambro, senior associate for sales and leasing.

“We’re thrilled to have both of these brokers join the Franklin Street team,” said Larry Kahn, senior director for industrial services at Franklin Street’s Orlando office. “Leslie and Mike are well-aligned with our core values of collaboration, integrity, accountability and hard work.  These new members of our growing industrial team understand ‘Big Data’ and how it impacts the commercial real estate market. Franklin Street’s goal is to present property in a remarkably different way, to help our customers make better real estate decisions.”
 
In her new role, Leslie Burke will advise clients on marketing/advertising industrial properties to potential tenants, asset disposition, and site selection for local, regional, and national clients throughout Orlando and Central Florida. 

Prior to joining Franklin Street, Burke represented commercial real estate clients in Gainesville, Fla., with Ferro Real Estate Partners and ran a Lean Six Sigma management consulting firm.  She is a member of the Orlando chapter of the Certified Commercial Investment Member Institute (CCIM) and the National Association for Industrial and Office Parks (NAIOP). She received her bachelor’s degree in Mechanical Engineering from the University of Florida.

As part of the industrial leasing and sales advisory team, Michael Dambro will specialize in industrial sales, leasing and site selection across Central Florida. He is a Florida native and 30+ year Orlando area resident with over a decade of commercial real estate appraisal experience. 

Prior to Franklin Street, Mr. Dambro served as a commercial appraiser for Chief Appraisal Services, Inc., where he appraised a wide variety of property types throughout the Central Florida market area with an emphasis on vehicle dealerships, medical offices and industrial properties. Dambro is a graduate of the University of Florida, where he earned a bachelor’s degree in Communications. 

Franklin Street is actively recruiting additional brokers in our offices in Florida and Georgia as we continue to expand our reach across the Southeast,” said Yvonne Baker, regional managing partner for Franklin Street. “Last year, Franklin Street executed more than $897 million in real estate transactions. In 2019, we expect to exceed $1 billion in transactions thanks to our unique collaborative platform.”

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

 

For full story, visit http://orlando.cre-sources.com/franklin-street-expands-industrial-brokerage-team-with-two-new-hires/

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Laying Down the Tracks for Rail-Served Site Selection

Excerpted from Area Development story.

The power of our nation’s railroads may not be obvious to the average American, but rail impacts all of our lives in one way or another. For more than 150 years, trains have efficiently and effectively delivered essential goods across the continental United States. These products, which include coal, grain, fertilizer, plastics, building materials and countless others, are staples of our economy and touch the lives of every American on a daily basis. Even with the advent of new forms of transportation, such as planes and automobiles, rail is not losing steam. 

But the most significant import that rail delivers is not the food products or fertilizer that helps feed our population and support our agricultural needs. It’s not even the coal that fuels many aspects of our economy. Trains deliver economic vitality. In 2017 alone, U.S. freight railroads helped produce $220 billion in economic activity and supported the jobs of 1.1 million Americans, according to a study by Towson University. The economic impact of rail is particularly noteworthy because rail-related jobs typically earn above-market wages, are often sourced locally, and do not require advanced college degrees. 

For these reasons, it is clear why economic developer organizations (EDOs) are all aboard the rail train. But how can a company seeking a rail-served site lay down the track for successful site selection? 

Timeliness is essential 
Meeting project timelines is essential for site selection in any industry. The difference between being able to break ground in 6 months versus 18 months could be the difference between a project’s success or its failure—and especially for rail projects. Historically, freight has been a point to point business with long haul truck lanes. Now, there’s a freight advantage to put that long-haul container- 53 foot domestic- on a train to move through certain lanes. 

No wonder one of the biggest factors disrupting rail-served site selection at present is the lack of shovel-ready sites, or sites that are ready to go and equipped with road, water, sewage and special permits. So, one key to successful site selection is being able to identify EDOs that can offer shovel-ready sites that match your geographic needs and align with your project timelines. 

Rural providing opportunity 
It’s common to seek rail-served industrial properties and intermodal logistics centers around the major urban areas. The EDOs for urban-centric locations typically have greater access to capital than more remote areas to market their sites. 

However, the biggest opportunity for a company seeking a rail-served location is to choose the cornfields over bright city lights. That is, in an economy with incredibly low unemployment, rural markets tend to have a greater availability of solid workers whose skills are perfectly aligned with the type of jobs that rail-served industrial projects provide: positions with above-market wages that do not require advanced college degrees. 

The catch is that rural communities rarely have the capital to gain publicity and awareness for their rail-served sites. So, it helps for your project team to include someone who has some knowledge of EDOs and railroad routes across the country. What you want is a rural location that is geographically linked to important ports, cities and transportation centers that may also offer streams of labor. 

What’s next? 
Railroads have been the main deliverers of goods, services, and most important, economic activity and vitality in America for the past 150 years. And, railroad usage isn’t slowing down anytime soon. If anything, the need for shovel-ready, rail-served sites and sustainable workforces is only becoming more urgent. If you’re a user of rail-served locations, start laying your tracks early and look outside the urban centers—and you may find a faster track to a new site. 

For full story, visit https://www.areadevelopment.com/consultant-insights/Q2-2019/rail-served-site-selection-laurence-kahn.shtml

 

About the Author
Laurence Kahn, Senior Director, Industrial, Franklin Street
As Senior Director in Franklin Street’s Orlando office, Larry Kahn specializes in industrial real estate services for clients in Florida. He is a 20-year Industrial real estate veteran who has extensive experience consulting domestic and international parties on issues regarding supply chain, logistics, rail, operations and restructuring. Franklin Street, a full-service commercial real estate firm, was established in 2006 and serves clients around the Southeast from its offices in Tampa, Orlando, Jacksonville, Fort Lauderdale, Miami and Atlanta. Most recently, Mr. Kahn served as a Director and National Leader for Cushman & Wakefield’s Rail Advisory Group, where he specialized on rail-served industrial real estate. He focused in site selection and bringing rail-served properties to market throughout the United States and Canada. Prior to Cushman & Wakefield, he worked as Vice President at CNL Commercial Real Estate.

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Franklin Street Adds Industrial Real Estate Services to Orlando Office

Franklin Street, a full-service, vertically-integrated commercial real estate firm, has added industrial sales and leasing to its list of real estate related services in Orlando and named Larry Kahn as senior director of the regional division. He will work out of the firm’s Orlando office alongside Scott Edwards, senior associate for industrial services. As part of the industrial brokerage team, Mr. Kahn and Mr. Edwards will specialize in landlord and tenant services and site selection for local, regional, and national clients throughout Central Florida and the southeast.

Most recently, Mr. Kahn served as a director and national leader for Cushman & Wakefield’s Rail Advisory Group, where he specialized on rail-served industrial real estate. He focused in site selection and bringing rail-served properties to market throughout the United States and Canada. Mr. Kahn also worked as a vice president at CNL Commercial Real Estate. Prior to Franklin Street, Mr. Edwards served as regional sales manager for Dackor Designs, a national manufacturer and distributor of continuous laminates.

Franklin Street is constantly recruiting new talent and looking for ways to enhance our service offerings,” said Yvonne Baker, regional managing partner for Franklin Street in Orlando and Jacksonville.  “Larry and Scott are exactly the type of highly motivated, experienced professionals that we are looking to hire as our firm continues its strategic regional expansion.”  

“Central Florida is transitioning from being a spoke to an industrial hub for distribution, which makes this a special moment in time to do Industrial real estate here,” said Mr. Kahn. “Franklin Street has embraced the change by assembling technology tools to better address customer needs.  We call them ‘Real Estate Power Tools.’  Decades ago, the spreadsheet revolutionized finance. Next, the internet transformed the business world.  Commercial real estate is about understanding and presenting data.  Our Power Tools present market data in a revolutionary manner that will make the customer experience remarkably better.  You either embrace change or compete against it. I chose to join the next wave of innovation that Franklin Street is leading.”  

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com. 

 
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Is My Property Ready to Sell?

In simple terms, “shovel ready” means a property ready to be developed. A survey, plat, roads, electric, water and sewer permits are in place. All the prospective buyer needs is site engineering, a set of construction plans and a building permit allowing them to proceed. When a prospective buyer seeks a site, they are ready to do business now, not 12 months from now. Are you ready to do business?

Common Elements in Florida

Different markets have slightly different definitions of “shovel ready” with the most common elements being: Ownership of the site is clearly defined and in the hands of a third party such as a local government agency, developer, private company, etc. Detailed information on the site is readily available and packaged in a profile that includes Site boundaries and identification of adjacent owners, Layout of the site with a survey, plat or parcels, roads, utilities, environmental reports and water management permits, clearly defined pricing by parcel and acre. Identification of whether the site is in any type of Opportunity Zone, HUB Zone or CRA that would qualify the prospective buyer for incentives. Completion of formal title search as well as geo-technical soils testing and archaeological studies. Defined transportation access to site and timing required for road and/or rail installation. Defined utility access to the site and timing required to run service to a specific lot/site.

Site selection is no different from buying anything else. The buyer ends up doing business where there is a site that is ready to be developed now. We offer a free shovel ready property checklist. Call Franklin Street with your real estate questions, Laurence Kahn, 407.756.8861 or Larry.Kahn@FranklinSt.com.

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Is My Property a Good Industrial Site?

Frequently I am asked to consider a property for industrial site selection. Properties fit into two types.

“Shovel Ready” is marketable functional property with proper zoning in place, permits for water management, roads, utilities, water, sewer, power and gas or at a minimum engineering plan for all of this. It has a plat and a site plan which allows for breaking off a portion of a larger property for that new factory. This property is ready to develop subject to obtaining a building permit and other rapid approvals.

“Raw Land” lacks all of the above and particularly lacks engineering and proper zoning. The engineering and zoning process takes between 6 to 9 months, water management permits in takes up to 24 months, bringing water, sewer and gas takes up to 12 months and plus, the lack of roads adjoining the property and in the property. Additionally, this is costly with an average cost of about $1,000,000 per 100 acres. Often, this landowner wants to put up the land and find a joint venture (JV) partner to provide the funding. 

Prospective buyers prefer a “Shovel Ready” site because it is ready to go and are especially impressed with sites that are certified as shovel ready by an engineering firm. Raw Land takes too long and has too many variables. Can you get zoning? How much does it cost to bring the property to a functional condition? Site selection is not much different from purchasing anything else. I want it ready to use, I want to understand the costs and I want it now.   

Bringing your property to market can be remarkably easier.  Learn more. Franklin Street, a full-service commercial real estate firm, was established in 2006 and serves clients around the Southeast from its offices in Tampa, Orlando, Jacksonville, Fort Lauderdale, Miami and Atlanta. Laurence Kahn can be reached at Larry.Kahn@FranklinSt.com or 407.458.5419.

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Recipes for Success

Is a financially strong franchise or a corporate-backed restaurant the best choice for a new retail center?

As all retail real estate professionals know, restaurants are red-hot right now. The total number of restaurants in the U.S. is expected to reach 1 million this year, 100,000 more locations than in 2005. This year, sales will top $783 billion, according to National Restaurant Association estimates.

While the demand for restaurants of almost all categories is undeniable, picking the right one for your project remains a tricky business. For developers and the brokers who advise them, the choice of food and beverage tenants is as essential to the tenant mix as the selection of in-line stores. and oftentimes determines the success of a property. Restaurants usually pay higher rental rates per square foot and generate excellent foot traffic.

Setting Goals

Though multiple factors determine which restaurant-related tenants are the best fit for a property, the choice ultimately depends on the developer’s goals. We believe that a developer that intends to sell the property for immediate proceeds should target corporate-backed tenants in most cases. The reason is that retail properties that offer a lineup packed with credit tenants tend to sell more quickly and command higher prices than comparable centers lacking those attributes.

For these properties, the goal of the owner and the agent should be to fill the center with high-rent tenants. The developer is generally willing to pay a higher tenant improvement allowance in order to amplify the cap rate.

Take the quick-service category, for example. Several popular Mexican-style concepts—Chipotle Mexican Grill, Moe’s Southwest Grill, and Willy’s Mexicana Grill, for instance—invite customers to create entrees from a variety of ingredients to suit their individual tastes. However, selecting the best option isn’t quite so simple.  Sometimes it will be a corporate restaurant, and at other times it may be a franchisee with multiple locations.

For instance, if a developer intends to flip a property quickly, the preferred choice may be a corporate-backed restaurant like Chipotle. However, for a developer planning a long-term hold, a financially strong franchise like Moe’s is the better bet. The challenge for the broker and developer is to determine on a deal-by-deal basis which restaurant tenant is able to pay the highest rent and provide the strongest credit.

The same analytical approach holds true for another increasingly popular market segment, the fast-casual category. These restaurants typically require space ranging from 1,500 to 2,500 square feet, with multiple concepts vying for available space, particularly in new developments. It’s up to the broker and the developer to determine the best fit based on credit, the number of similar tenants in the market, and the experience of the owner or operator that would oversee the concept.

In general, most retail developers today are trying to sell their projects as quickly as possible to take advantage of low interest rates and the relatively small inventory of product on the market. For that handful of project sponsors planning a long-term hold, which offers the flexibility to incorporate more franchisees and unique local tenants.

Wise Owl 

In Kennesaw, Ga., part of the metropolitan Atlanta market, we are working with a local developer on a new 17,000-square-foot center called Owl Creek Commons (the name is a tip of the hat to the mascot of nearby Kennesaw State University). Together with the developer, we created a plan to bring restaurant concepts to four of the seven available spaces in the center.

With that in mind, we identified concepts that would be willing to pay premium rents but could also provide strong guarantees in the event the developer decides to bring the property market earlier than anticipated. After working on several other nearby retail projects in prime locations, we were able to advise our client on which popular brands were seeking to expand or enter the market. The upshot was that Chipotle Mexican Grill, Capriotti’s Sandwich Shop, Taziki’s Mediterranean Café and Tropical Smoothie Café all signed leases at Owl Creek Commons, and only one 1,850-square-foot space remains.

We’d like to leave you with a final thought. When a retail project first starts coming to fruition, it’s imperative that the developer takes the time to find a broker who understands their goals. Brokers who know which retail tenants are in the hunt for space, where they want to go and what they need give their developer clients a leg up on competition and eliminate some of the risk associated with new developments. By working together to create the best possible tenant mix from the start, the sponsor and adviser greatly raise the odds of developing a successful project that meets the developer’s goals.

Justin Berryman and Reid Mason are Atlanta-based directors with Franklin Street, a diversified real estate services company. They specialize in retail landlord representation and leasing throughout Georgia, Eastern Alabama, and Southern Tennessee. In the last two years, Berryman and Mason have advised clients on 10 developments in Greater Atlanta ranging in size from 10,000 to 150,000 square feet.

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