The investment market had been led by J.P. Morgan Group paying $235.5 million, or more than $200 per sf, to Lend Lease Realty for the 17th Street Plaza high rise in the CBD, according to the report. "The real story in the sale was its affirmation that the metro area had finally shed the lingering stigma of the volatility witnessed in the late 1980s," the report concludes.
The report notes that more than 40,000 new jobs had been created in the metro area. "Not surprisingly, these employees helped absorb a good majority of the over 10 million sf of new industrial, retail and office product that was delivered to the market in 2000," according to the report. "As a result, the market continued to build on the momentum that was generated during 1999, and consequently witnessed its average price per square foot increase in virtually all product types and in all corners of the market."
On the downside, the report says landlords are becoming more selective with dot-com transactions. "Landlords are now beginning to ask for a letter of credit tin lieu of or in addition to stock options as collateral. Look for this trend to continue as owners attempt to shelter themselves from the volatility of the stock market." says Grubb & Ellis.
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