Quotes of the Month:
"Stick with the optimists. It's going to be tough enough even if they're right." James Reston

 "When success turns a person's head, he is facing failure." Author Unkown

 Interest Rates
10 year Treasuries were 4.73% on 8/31/06, compared to 5.07% on 4/28/06, 4.55% on 2/28/06, 4.56% on 3/30/05, and 4.62% on 6/30/04.

 Top Stories in this Issue:

1. Celebrities continue to move to Nashville. Latest are Scott Hamilton (gold medalist skater), Aaron Neville (singer) and Arthur Laffer (father of supply side economics).
2. Kiplinger names Nashville No. 1 Perfect Place to live in the U.S.
3. Brookside buys Hillsboro Plaza for $20 million.
4. 800,000 SF shopping center started in Murfreesboro.
5. 830,000 SF shopping center opens in Mt. Juliet.
6. Rutherford is 20th fastest growing county in U.S.
7. Williamson is 15th wealthiest county in U.S.

 Headlines for July (listed by date)

1. Kiplinger Names Nashville No.1 Perfect Place to Live in U.S., Kiplinger.com, 7/1/06
2. Brookside Buys Hillsboro Plaza for $20 Million, Tennessean, 7/1/06
3. 68% of Conduit Loans have an Interest-Only Period; Average LTV of 104%, Retail Traffic, 7/1/06 (only 11% had interest only in 2002; average maturity about 10 years)
4. Lower Income Households are More Affected by Energy Price Increases (Less disposable income), Retail Traffic, 7/1/06
5. In 2005 The Average American's Spending Exceeded Disposable Income for the First Time Since 1933,, (a negative savings rate), Retail Traffic, 7/1/06
6. Nashville Job Growth Tops in State and Better Than U.S., Tennessean, 7/1/06
7. Land Bought in Hendersonville for 320,000 SF of Retail on Indian Lake, Business Journal, 7/1/06
8. Kroger Plans 103,000 SF Store in Spring Hill, Tennessean, 7/6/2006
9. Airways Plaza (149,300 SF) Sells for $9.1 Million and Donelson Plaza for $6.1 Million, Tennessean, 7/7/06
10. Eight Hotel Projects Planned in Downtown Area, Tennessean, 7/12/06
11. Mapco Building 54,000 SF Headquarters in Brentwood, Tennessean, 7/22/06
12. Wachovia Plaza Sells for $5.6 Million, Tennessean, 7/22/06 (77,000 SF)
13. 800,000 SF Retail Center Starts in Murfreesboro, Tennessean, 7/25/06 (paid $24.5 million for 99 acres)
14. Thompson's Station to get Wal-Mart Supercenter, Tennessean, 7/28/06
15. Largest Nashville Area Manufacturers: Nissan (8,100 employees), Bridgestone (4,900), A.O. Smith (1,800), Dell (1,500), Tyson Foods (1500), Whirlpool (1,500), Bridgestone (4,900), A.O., Business Journal, 7/28/06
16. Ole South Properties Buys 147 Acres in Antioch, Business Journal, 7/28/06 (for 650 homes)
17. Stones River Mall in Midst of $40 Million Dollar Redevelopment, Business Journal, 7/28/06
18. CarMax in 100 Oaks sells for $20.7 Million, Business Journal, 7/28/06 (54,300 SF on 12 acres)

 Headlines for August (listed by date)

1. Belk Buying Parisian, Tennessean, 8/3/06
2. U.S. Average Price PSF: $172 psf for Retail and $207 for Suburban Office, Commercial Property News, 8/3/06
3. 830,000 SF Shopping Center Opens in Mt. Juliet, Business Journal, 8/11/06 (Providence Marketplace; cost $80 Million; Target, Penny, Belk, Kroger, Dick's, Best Buy, Cinema, Staples)
4. Hockey in Lebanon? 5,500 Seat Hockey Arena Proposed, Business Journal, 8/11/06
5. Office Market Report: Cool Springs, Green Hills, Metro Center, Brentwood Below 6% Vacancy; Airport over 20%, Centennial Office Market Report, 8/11/06
6. Tennessee Zero Income Tax Lures Arthur Laffer from California, Tennessean, 8/14/06 ("Tennessee is the undiscovered gem", says Laffer).
7. 872 Home Subdivision Planned for Lebanon, Business Journal, 8/18/06
8. U.S. Comptroller General Says Deficit Big Threat, Tennessean, 8/19/06 (Must raise taxes and reform Medicaid and Social Security or go bankrupt. Fiscal Exposure amounts to $411,000 per household).
9. Rutherford County Growth 20th in U.S., Tennesean, 8/22/06, (Between 7/1/04 and 7/1/05)
10. Eckard to Be Rite Aid, Tennessean, 8/25/06
11. Wages Lowest % of GDP Since 1947, Tennessean, 8/28/06
12. Williamson 15th Wealthiest US County, Tennessean, 8/30/06 (15th per capita and 11th based on median family income).
13. End of Single Family and Condo Boom, National Real Estate Investor, 8/30/06 ("significant declines in both new and existing home sales as well as falling median prices").
14. Target to Anchor Spring Hill Center, Tennessean, 8/31/06, (planned by GBT Realty)
15. Inflation Ahead, Tennessean, 8/31/06
16. July U.S. Housing Construction Had Biggest Decline In 4 Years, But Non-Residential Increased, AP, 8/31/06
17. Bob Martin, Franklin Planning Director and Good Guy Retires, Tennessean, 8/31/06 (Bob will be missed. He is a long-time friend and deserves a lot of credit for the wonderful city that Franklin is today).

David Huddleston
(615) 310-2547