Redstone recently accepted a Smart Growth Award from an organization doing important work across the state called Smart Growth Vermont.  So, what is Smart Growth?

According to the Smart Growth Network, the Principles of Smart Growth include:

• Creating a range of housing options and choices, providing quality housing for people of all income levels;
• Creating walk-able neighborhoods;
• Encouraging community and stakeholder collaboration in growth decisions;
• Fostering distinctive, attractive communities with a strong sense of place;
• Making development decisions predictable, fair and cost effective;
• Mixing land uses;
• Preserving open space, farmland, natural beauty and critical environmental areas;
• Providing a variety of transportation choices;
• Strengthening and directing development towards existing communities;
• Taking advantage of compact building design.

http://www.smartgrowth.org/about/principles/default.asp

From Smart Growth Vermont

“How individual communities plan for and manage land use and development will determine Vermont’s economic, social and environmental well-being.  The state’s distinctive sense of place is largely the result of its cultural and economic heritage. This heritage created, and maintained, the state’s historic landscape of compact cities and villages surrounded by working farms and forests. Unfortunately, this landscape is being incrementally lost to a pattern of unplanned, inefficient development.  The result is that our farms, forests and opens spaces are being replaced by strip malls and residential subdivisions scattered far outside of our traditional centers.

At Smart Growth Vermont, we believe that for Vermont to grow and thrive we need to carefully integrate growth, environmental protection and economic opportunities into our local planning framework.  This will require the participation of citizens, local and state officials, developers, business leaders and non-profit organizations.  Our future depends on careful analysis, dialogue, cooperation and leadership.”

http://www.smartgrowthvermont.org/learn/

At Redstone we believe strongly that Vermont’s historic settlement pattern and sense of place are essential elements to the quality of life we all enjoy and the continued success of our state.  We focus our development efforts in villages and downtowns; we rehabilitate historic structures; we re-purpose pre-existing buildings; and we build new buildings in infill locations.  We’re proud to be the recipients of two awards from Smart Growth Vermont for our Marble Works Residences project in 2007 and this year for the initial phases of the BankNorth Block redevelopment.  In both cases, we had a number of project partners involved and could not have achieved success without tremendous collaboration.

The redevelopment of the BankNorth Block is a prime example of Smart Growth at work in Vermont.  Burlington presents our state’s greatest smart growth opportunities as well as its greatest challenges with incredibly high demand for residential and commercial space; very little developable land; and tight urban sites to work with.  Smart Growth in Burlington requires a collaborative approach bringing the private, public and non-profit sectors together to achieve success.  Along with our project partners Housing Vermont, Champlain Housing Trust, Farrell Real Estate and Mary Farrell, we’re pleased to accept this award for the initial phases of the BankNorth Block redevelopment; we hope that Smart Growth advocates statewide will be supportive of the final phases of this dynamic urban infill and adaptive reuse project.

http://www.smartgrowthvermont.org/help/awards09/awards07/

http://www.smartgrowthvermont.org/help/awards09/2009smartgrowthawards/

Approximately 1,300 SF.  Formerly a Dunkin’ Donuts/Convenience and grocery, this space provides an excellent neighborhood location on the corner of  Woodbury Road and North Avenue.  Highly visible with plenty of free parking.  Available immediately.

http://www.redstonevt.com/Retail-Restaurant-For-Sub-Lease-VT-Commercial-1353-1355-North-Avenue-Burlington-Vermont

Prime Retail space on church street.3,500 SF with expansion potential.The space can be sub-divided into 3 spaces of 750 SF, 1,000 SF and 1,500 SF fairly easily. The full basement is a bonus as well is the access from the rear with parking available for a monthly fee.

http://www.redstonevt.com/Retail-For-Sale-VT-Commercial-20-26-Church-Burlington-Vermont

Two Industrial condos totaling 12,384 SF on 1.32 acres with frontage on both Leroy Road (285′) and Krupp Drive (157′).  Fully Sprinklered warehouse with 18′ ceilings.  Three electric overhead doors (two at dock height, one at grade).  Municipal water and sewer & natural gas.  Located within well-established commercial, light industrial zoned area.

http://www.redstonevt.com/Investment-Office-Warehouse-Industrial-For-Sale-VT-Commercial-4-8-Leroy-Williston-Vermont

Former Shelburne Motorcars location, this space offers 4,000+ SF of warehouse space perfect for automotive repair or storage facility. 10’x12’ drive-in door and 13’x12’ office, bathroom, dedicated parking. Conveniently located ju…st off Shelburne Road. Fully sprinkled, gas heat, and concrete floors. Available October 1st.

http://www.redstonevt.com/Office-Retail-Warehouse-Industrial-For-Lease-VT-Commercial-4750-Shelburne-Shelburne-Vermont

22 Pleasant Street, Randolph, Vermont

Stand alone commercial building in downtown Randolph with 1,000 SF upstairs apartment. Current location of the 3 Bean Café, this space offers great visibility, plenty of parking, and enormous potential for the right buyer. New hardwood floors upstairs and down, this property is priced to sell!

http://www.redstonevt.com/Retail-Residential-Investment-Multi-Family-For-Sale-VT-Commercial-22-Pleasant-Randolph-Vermont/

61 US Route 4, Mendon, Vermont

17 room motel plus owner’s residence (with motel office, lobby, coffee shop), swimming pool with shed, and storage shed all situated on a little over 5 acres. Wonderful views surround this mountain road motel which is less than 3 miles from Killington and less than 2 miles from Pico Ski Resorts. Whether you are new to the motel business or a seasoned veteran, you can argue that the location presents a wonderful opportunity. The property is being sold in AS/IS condition. Showings will be by appointment only and will be conducted the week prior to bids being due. For a full package on the property with a description of the Bid Process, please call or e-mail Peter Yee.

http://www.redstonevt.com/Business-Motel-For-Sale-Bid-Auction-VT-Commercial-Route-4-Mendon-Vermont/

45 Avenue D, Williston, Vermont

Offering good visibility and curb appeal! A 10,645 SF mostly air conditioned commercial building, currently Kittredge’s showroom space. Layout currently consists of a large showroom, a few private offices, admin space and warehouse with a dock. 13’-20’ ceiling height, 400 amps 3 phase power, built around 1976. Available November 1st.

http://www.redstonevt.com/Office-Warehouse-Industrial-For-Sale-For-Lease-VT-Commercial-45-Avenue-D-Williston-Vermont/

52 River Road, Stowe, Vermont

Unique development/investment opportunity in Stowe, offering 19,823 SF of warehouse/retail/office and storage space on 5.66 acres of land. Perfect for light manufacturing, warehouse, retail, or office space. Located in serene country setting, yet conveniently located literally minutes from downtown. Plenty of parking as well as a 50-year lease on additional parking lot. Waterfall offers micro-hydro power potential. 3-phase power, municipal water and sewer serves the property. This is a must see!

http://www.redstonevt.com/Land-Office-Warehouse-For-Sale-VT-Commercial-52-River-Stowe-Vermont/

A national rating firm RealtyTrac(R) (www.realtytrac.com) has reported that Vermont has both the fewest foreclosures over the first half of the year and the lowest rate as a percentage of housing units. Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008. “In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.

See the full article here:

http://www.vermontbiz.com/news/july/vermont-continues-have-far-lowest-foreclosure-rate-us-0

For the first two quarters of 2009, the vacancy rate for industrial/warehouse space in Chittenden County has been 9%. This is a very acceptable vacancy rate considering the depth and severity of this recession, and given that the historic average vacancy rate is 7.4%. Although we have experienced a net decrease in occupancy over the past 12 months, there are still local companies which have contributed to space absorption, such as Green Mountain Coffee Roasters and Blodgett Ovens.

The industrial market in this recession versus the last significant recession in 1989-1992 seems to be quite different. The 1989-1992 recession provided significantly more foreclosures, and bank-owned properties and vacancy rates increased to over 10%. It is widely believed that the Vermont State and Chittenden County economies tend to be insulated and lag behind national economic trends. This seems to hold true with many fearing that national economic impacts will still be chiseling away at our economic foundation after the rest of the nation has turned.

With the increased vacancy rates, lease rates are trending lower. Average industrial space is currently leasing at $4.50 – 6.00 per SF with the tenant paying the NNN expenses which will typically add another $1.50 per SF to the occupancy costs. A prime example of warehouse/ industrial space is 68 Nesti Drive in South Burlington. The other factors that favor lower lease rates are the cost of construction and cost of money, which have significantly been reduced in the last twelve months.

However, capitalization rates have recently increased. This is a bit unusual as the interest rates are historically low. Investors seem to be more cautious with their cash, and are looking to the capitalization rate for their return on money, not appreciation.

New supply in 2009 is projected to be limited with no new speculative projects planned and a few small owner-occupied driven projects. These projects will most likely contribute approximately 50,000 SF of space to the marketplace.

68 Nesti Drive, South Burlington:

http://www.redstonevt.com/Office-Warehouse-Industrial-For-Lease-VT-Commercial-68-Nesti-South-Burlington-Vermont/

Other exceptional Industrial Properties include:

133 Elm Street, Winooski:

http://www.redstonevt.com/Warehouse-For-Lease-VT-Commercial-133-Elm-1-Winooski-Vermont/

312 Commerce Street, Williston:

http://www.redstonevt.com/Office-Warehouse-For-Sale-For-Lease-VT-Commercial-312-Commerce-Williston-Vermont/

823 Ferry Road, Charlotte:

http://www.redstonevt.com/Office-Warehouse-For-Lease-VT-Commercial-823-Ferry-2-Charlotte-Vermont/

The Chittenden County office vacancy rate continued to climb this spring, reaching greater than 12% of the approximately 7.1 million total square feet of office inventory.  This is up from a 10% vacancy rate last fall, and almost double the historic average of 6.7%.  Despite these numbers, projections show record growth of office space in this market for the coming year. Space at 110 West Canal Street in Winooski is a prime example of the newer office space. A total of 326,000 SF of new office space is scheduled for completion by the end of 2009, a 5% total increase.  Notable additions to the supply include a 27,200 SF build to suit Homeland Security complex in South Burlington, the development of a 32,650 SF building for US Immigration in Williston, and a 138,000 SF former IBM building in Williston that is now available for lease.  With the abundance of supply and variable demand, we expect vacancy to exceed 14% by the end of 2009.   In terms of lease rates, office space in the Central Business District (CBD) are stable, demanding $13-$17 per SF for Class A, with Class B ranging from $8-$13 per SF.  An example of Burlington CBD office space is 115 College Street, 2nd and 3rd floor.  Despite current economic conditions, occupancy in the CBD is still strong.  We are seeing vacancy declining, down from 4.5% last fall to 4% currently.  With a 16 year historic average of 6.2%, these are encouraging numbers.   The suburban market however is weakening, with Class A calling for $12-$16 per SF, and Class B in the $7-$12 per SF range.   This is primarily due to a surplus of supply in this sector, and a vacancy rate of 14.7%, more than double the historic average.

115 College Street, Burlington, 2nd Floor:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-115-College-2-Burlington-Vermont/

115 College Street, Burlington, 3rd Floor:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-115-College-3-Burlington-Vermont/

110 West Canal Street, Winooski:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-110-West-Canal-Winooski-Vermont/

With the current state of our economy, many people are taking the ‘wait and see what happens’ approach to making many investments or financial commitments.  While lines of credit require a bit more than they once did in the times of zero-down financing, it is still a great time to invest, particularly in real estate.  Low interest rates, tax incentives, from first time home buyer (here) to energy efficiency credits (here), are not only available, but accessible.  

However, many people are still left wondering what they should be looking for when investing?  As a general rule, a good investment is one meets the objectives of a specific investor or investors, regardless of what the asset is.  Any investment has certain characteristics that include liquidity, marketability, and risk, each having higher or lower degrees of importance and impact on any given investment scenario.  For instance, if you want to invest in something that has high liquidity, meaning the ability to turn your investment into cash quickly with no loss to your principle, real estate may not be the best vehicle to meet your objectives.  Further, when speaking about real estate investments, you are speaking about an equity type investment, where the investor is placed in a position of ownership.   Three characteristics that favor, and should be considered when making a real estate investment are:

Rate of Return:  Referred to as ‘Yield’, it is simply the percentage return on each dollar invested for each period invested.  This can be done on a pre-tax as well as a post-tax basis.

Tax Impact:  See above, as well as capital gains taxes on certain types of income, and tax deferments

Leverage: The use of borrowed funds to finance some of the purchase price of an investment.  The ratio of borrowed funds to total purchase price is referred to as Loan to Value ratio, or LTV.  A higher LTV means a greater amount of leverage.  Real estate transaction can often be highly leveraged when comparing them to other investment types.

Depending on what your investment objectives are, generally speaking, real estate has real potential for a high rate of return and can in many scenarios have a favorable tax impact.  This coupled with the ability to finance a significant percentage of the cost, make real estate, commercial and residential alike, a great option for a long term investing. 

Tenant retention is an integral part of property management. Creating a strategic plan for tenant retention is necessary.  No longer is tenant retention simply service with a smile.  Today’s property management companies must understand and know what their tenants want, need and expect from their occupancy.  Creating and building a relationship with tenants is crucial.  Tenants that are treated as valued “partners” in the property will in turn be more satisfied in their tenancy.  Giving your tenants a voice and a say in the running of the property is a new and different approach to retention.  Property management is a “we” business and this needs to be conveyed to the tenant.  A team approach, coupled with creative thinking, and a community building positive attitude is what today’s tenants require .
 
At Redstone, our property management prides itself on building a sense of belonging for every tenant.  We work with tenants to accommodate their needs and take a proactive, long term approach towards property management.  Looking at both the fiscal and physical management of every property we strive to provide a tailored and individualized property management service for each property.  Whether it is a maintenance technician, repairing a faucet or a property manager reviewing an annual property budget, every tenant is treated as a valued customer.  Our goal is to convey to our tenants that they are important to us and to provide superior, quality property management services.

What is Green Building?  According to the Vermont Green Building Network http://www.vgbn.org “Buildings have a tremendous impact on the environment–both during construction and through their operation.  Green building is a loosely defined collection of land-use, building design, construction, and operational strategies that reduce these environmental impacts. Green building practices offer an opportunity to create environmentally sound and resource-efficient buildings by using an integrated approach to design: architects, engineers, land planners, building owners and operators, and constructors get together and design the building by looking for cooperative or advantageous relationships between parts of the project.”
 
At Redstone we believe Green Building starts with selecting the right site.  Many of our projects involve reusing existing buildings and focusing investment in Vermont’s downtowns and village centers.  Working in locations with a variety of compatible uses and transportation alternatives results in fewer single occupancy vehicle miles traveled by building occupants.  After site selection, using high quality materials that will last long term, are sourced locally when possible, and do not contain harmful chemicals is critical.  Additionally, designing mechanical and electrical systems that perform efficiently reduces energy consumption and lowers a building’s carbon footprint.
 
There are a variety of excellent sources for additional information on Green Building topics and techniques.  In addition to the Vermont Green Building Network, a couple of my favorites are Environmental Building News (based in Brattleboro) http://www.buildinggreen.com/ and the U.S. Green Building Council http://www.usgbc.org/ 

Not a day goes without hearing about topics of energy efficiency, green building or capturing our renewable resources.  Who does it really benefit?  http://www.reformer.com/ci_11903551?source=most_emailed