How Far Your Paycheck Goes, In 356 U.S. Cities

Knoxville's Low Cost of Living Makes Median Income Feel Like More 

Cost of living is a big factor when individuals and businesses make decisions on relocating their life or their operation.  So, how does Knoxville compare to other cities? 

The government recently released a data set that NPR used to provided a very interesting searchable graphic that provides some insight into how a city's cost of living compares with the average annual income. In the graph below, the left-hand side shows the annual income for typical, full-time workers in different metro areas while t he right-hand side adjusts that figure for the cost of living in each metro area.

The data used accounts for things that people actually buy in each city. For example, in places like New York City where car ownership isn't as common that cost would not figure into the data as much.

As the graphic shows, Knoxville is a less expensive place to live with a median income of $28,857 per year. However, thanks to a low cost of living it's like you are really making $29,873 per year.  Compare that to a city like San Francisco.  Their median income is $44,452 but the cost of living drags it down to $32,289.  Ouch--better stock up on Rice-a-Roni.

Just another reason why Knoxville is growing into a prime relocation destination.

Click here to read NPR's article and see infographics for other cities.

KNOXVILLE RANKED AS A “MILLENNIAL MAGNET” BY USA TODAY

KNOXVILLE RANKED AS A “MILLENNIAL MAGNET” BY USA TODAY

High national rankings keep rolling into Knoxville.  USA Today recently put Knoxville on its list of “Millennial Magnets”, a list ranking cities that have more 20-somethings than teens. These cities—rooted in high education, technology and development—are serving as new kinds of cities, born from deep demographic shifts and built from the power of technology. Knoxville, like many of the other cities listed, were traditional college towns that attracted students who then left after graduation for work. However, Knoxville has become a post-college town.

The region has long been known as ‘Innovation Valley’ by regional economic development agencies due to the concentration of scientific and technological assets that surround the area, as well as business sustainability efforts. The availability of high wage jobs for educated individuals at places like Oak Ridge National Laboratory, Y-12 National Security Complex, The University of Tennessee and numerous recession-proof healthcare industries surround the area make those that come for an education more likely to stay.

Ranked 6th by Forbes magazine among Best cities for Jobs, the area is #1 in green job growth according to the Brookings Institute. By combining technological resources with the Knoxville area’s central location, the region is competing for top level jobs and job creators in the expanding green industry.

According to the ACCRA cost of living Index, Knoxville’s cost of living is well below the national average, and either competitive with or lower than each of its southeastern competing cities like Memphis, Nashville, Charlotte, Raleigh, and Columbia.

These things, combined with a thriving cultural, educational and recreational landscape make Knoxville a major player as a growing city full of future business leaders.

Student of the (CRE) Game

The largest gains in the commercial real estate market in Knoxville over the past year have been in multi-family.  More specifically, in student housing.

Projects are popping up all over downtown and west Knoxville with a focus on Fort Sanders and now Sutherland Ave.

In 2013, Rick Gentry, Cushman & Wakefield | Cornerstone's multi-family specialist, closed two of the largest student housing transactions in the market.  He talked to WBIR about the explosion in the segment.


Student-housing Explosion in Knoxville

Click on the link for the story.

Knoxville Earns Another Big Ranking

Following accolades from magazines like Forbes and Inc.; the Milken Institute is pushing Knoxville as one of the best - performing metro areas in the country.   See the story below from today's Knoxville News Sentinel. 

Last week Forbes ranked Knoxville second in the US in the "Happiest Place to Work" list.  

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Knoxville's employment renaissance has caught the eye of a prominent think tank.

The Milken Institute, a nonpartisan research group based in Santa Monica, Calif., on Thursday released its list of the country's best-performing metro areas.

Knoxville came in at No. 25 among the 200 largest metros, jumping 33 spots compared to 2011.

The Milken index measures job, wage, and technology performance to compile its rankings — with employment growth weighted most heavily — but does not use quality-of-life indicators such as commute times or housing costs.

The Knoxville area garnered particularly strong marks for job growth between 2010 and 2011.

The local economy has shown signs of strengthening even since the Milken Institute conducted its analysis. In the final weeks of 2012, a trio of industrial companies announced expansion plans that are slated to add more than 300 jobs in the area.

That list includes Italian tile-maker Del Conca, which said it would build a $70 million plant in Loudon County that would create 178 jobs.

Rhonda Rice, executive vice president of the Knoxville Chamber, noted Thursday that Knoxville's best performance came on the most recent statistical measurements and said 2012 saw even more of an increase. "We're very optimistic about good things on the horizon here for the Knoxville region," she said.

Knoxville had the highest ranking of any large metro area in Tennessee. Nashville was listed at No. 27, Chattanooga at No. 80 and Memphis at No. 99.

The country's top-ranked metro area was San Jose, Calif., followed by Austin, Texas, and Raleigh, N.C.

Las Vegas, Modesto, Calif., and Lakeland, Fla., were ranked at Nos. 198, 199 and 200 on the list.

Technology is a wonderful thing...most of the time

Yes, technology is a great...cell phones, emails, cameras.  Everything in our life is recorded and we are always available.  Of course the down side is ...Everything in our life is recorded and we are always available.  But this is about one certain type of technology and how it can help those of us in the commercial real estate world.  Its simple and great for exposure (not the Rep. Anthony Weiner type of exposure).

Recently I took my iPad3 out for a test run to see what I could us it for to create marketing videos for properties we represent.   It was truly shocking how quickly it came together.

I spent a total of 45 minutes shooting videos and taking pictures at three buildings.  With in an hour of getting back to my office I had created my first movie and uploaded it to YouTube (check it out http://www.youtube.com/watch?v=yCw0KhDdvt8).  I didn't even have to read any directions or take a tutorial on iMovie.  I just that easy.

Continuously I am impressed by how quickly the world of marketing commercial projects is changing.  Everyone needs to keep up.

The real estate tax information you don't want to hear about...

Postponing closings are always inconvenient but some are more painful than others.
Yesterday we postponed a transaction and don't think it will close until January.  But this is more than just a delay in closing, there are SERIOUS tax implications.

The new year brings new taxes.  A change in capital gains taxes, as well as ordinary rates (and don't forget the special Medicare tax on investment income of 3.8%.  I doesn't effect a closing directly but will effect the sellers tax return).

All together the delayed closing will increase the tax burden to the seller by $600,000!  Needless to say, negotiations are on-going.

Work hard for your clients in the last 61 days of the year.  Get those deals closed.

KNOXVILLE RETAIL SNAP SHOT

This morning Cushman & Wakefield | Cornerstone is releasing the third quarter results of the Knoxville retail market.  Its an interesting look at changes that have been made in the market in the last few months.  

RETAIL SNAPSHOT - KNOXVILLE, TN 3Q 2012  

The outlook for today’s retailers remains challenging as many find themselves confronted by reduced consumer spending and weak credit market conditions. New economic realities have resulted in a new order of buyers who are more price-conscious and careful about the discretionary purchases they make. The critical challenge for retailers under these circumstances will be delivering a compelling in-store experience that drives profitable growth in 2013. The one-size-fits-all approach doesn’t work for all shoppers – nor all locations. To grow, many retailers are shrinking, sometimes with smaller stores, sometimes by introducing smaller, more intimate and approachable locations within larger stores. 

RETAIL MARKET OVERVIEW    

The vacancy rate closed the quarter at 6.1%. Net absorption stands at a negative 348,579 square feet (sf). Rental rates increased slightly from the second quarter 2012 levels, ending at $11.31 per square foot (psf).

This summer, a South Carolina developer paid $1.7 million for a 4.4- acre site next to the Wal-Mart on Norris Freeway, and said it planned to develop a retail center for 10 tenants. Hibbett Sports recently announced that it will open a store at the site.

There were several significant lease transactions for the quarter including an 18,360-sf lease at 1665 E. Andrew Johnson Hwy. to Badcock Furniture (seller-represented by Cushman & Wakefield|Cornerstone). Also of note is the lease at 1115 N. Charles G. Seivers Blvd to United Grocery for 18,225 sf.

Several significant sales took place over Q3 12, including the closing of 640 Plaza (44,435 sf) for $5.2 million. Also, Goodwill Industries recently closed on a 45,178-sf neighborhood center in the North/Broadway submarket for $2.5 million. 

“The consumer hasn’t exactly thrown in the towel, which is encouraging because they’ve been battered and bruised in recent

months with very slow job growth,” said Millan Mulraine, senior U.S. strategist at TD Securities Inc. in New York. “We’re off to good a start in the third quarter. I do question the sustainability of the current level of spending. It can only be sustained if employment growth continues to accelerate.” 

OUTLOOK

“We have seen a major upswing in the Knoxville and east Tennessee retail market. With the new developments happening in West Knoxville, Oak Ridge, Halls and the growth at Emory Road, we feel very positive about new east Tennessee retail. National tenants are expanding into areas that had been previously underdeveloped and new anchors are moving into the area developments.”

-John Rebori, CCIM, Associate Director, Cushman & Wakefield | Cornerstone

If you want to see the entire report and stats please click on the link below.  

http://library.constantcontact.com/download/get/file/1104796466421-635/Knoxville_AMERICAS_MarketBeat_Retail_2page_Q32012.pdf