2012 Global Market report - NAI Global

More documents

Recommendations

Info

Kansas City, Missouri St. Louis, Missouri Contact NAI Capital Realty Kansas City +1 913 469 4600 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 2,044,888 2,081,972 1,108,660 $74,054 $58,283 Kansas City straddles the Missouri/Kansas border. The region continues to show positive signs of recovery over the last year. Private education, engineering, financial services, healthcare and auto sectors provided recent gains and the services sector should lead future employment gains. According to a recent report, Missouri and Kansas are top 10 pro-business states which will improve job growth. The industrial sector has been positively impacted with an increased demand by auto manufacturing suppliers supporting both the General Motors Fairfax plant in the Wyandotte County submarket and the Ford Claycomo facility in the Clay/Platte County submarket. In aggregate, over 1,000,000 SF of space has been leased over the last 18 months to this industry segment. This trend should continue in the coming year with Ford’s new labor agreement which includes a commitment by Ford to invest $1.1 billion and create 1,600 new jobs in the Kansas City area. The office market worsened in 2011 as vacancy increased to 19.1% from 18.6%. Class A improved to 15.5% from 16.7% and Class B increased from 19.8% to 21.1%. Flight to quality continued with pricing pressure in all classes. Larger submarkets improved in Class A vacancy. Both Midtown/Plaza and South Kansas City fell over 4%. Incentives from states and municipalities drove shifts from Missouri to Kansas, and to a lesser extent, vice versa. The incentive practice is controversial as typically metro employment is not increased. Johnson County, Kansas attracted many deals with South Kansas City, Missouri, a distant second. We expect continued drops in Class A vacancies in dynamic submarkets with rents increasing incrementally by year end. Absent of improved employment, metrowide Class B vacancy rates will face pressure throughout 2012. The retail market has improved, somewhat buoyed by continued repositioning of several centers and the arrival of new retailers. The Legends Center near the Kansas Speedway converted to an outlet format. New retailers to the area include Trader Joe’s (two locations), Nordstrom Rack and Buy Buy Baby. Both Legoland Discovery and Merlin Entertainment Aquarium have committed to Crown Center in the CBD. Contact NAI DESCO +1 314 994 4444 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 2,842,793 2,868,012 1,494,129 $64,336 $52,709 Through 2011, the St. Louis metro area employment has expanded an average of 0.1% per month, mirroring and slightly outperforming the national trend. Key industries that have experienced stronger than average growth in 2011 include transportation/distribution, health/education, manufacturing and other services such as retail trade and administration. In the second half of 2011 the Missouri coincident economic activity index has begun to increase appreciably, pointing towards the potential for improved growth in 2012. After dropping below 8% at year end 2010, industrial vacancy rates climbed to 8.8% during 2011. Less than 40,000 SF of new space was delivered in 2011, a historic low, however absorption stands at negative (912,892) SF for the year. This has placed further downward pressure on asking rates which have dropped by nearly 4%. Significant transactions in 2011 include Walgreens (500,000 SF), Cenevo Inc. (220,000 SF), Waters of America (145,000 SF) and American Tire Distributors (123,000 SF). A 139,000 SF building with 0% space pre-leased is the only new project currently in development. Office vacancy rates rose 1% in 2011 and rental rates are still declining slightly; tenants continue to obtain lease concessions. The high end Class A market is the brightest spot in St. Louis’ office market, with positive growth seen in the delivery of the National Records & Archives building (474,690 SF), which is 100% leased, and the 100% pre-leased BJC Healthcare HQ (300,000 SF) currently under construction. Other significant transactions include Peabody Energy (215,362 SF), Amdocs (117,000 SF) and Emerson Electric (72,000 SF). In the retail sector both vacancy and asking rates have stabilized over the past year. Mid-box stores have stepped up their market activity. Discount retailers in particular are expanding, including Big Lots, Aldi, Weekends Only Furniture and Dollar stores. Walmart and Sam’s Club are planning multiple new stores in the St. Louis metro. Kohls and Menards are opening new locations in outstate Missouri. Nordstrom opened its second St. Louis location, with a second Nordstrom Rack to open in 2012. Two significant outlet malls are proposed for the west St. Louis submarket, continuing the trend of discount retail expansion. Total Population Median Age 36 Total Population Median Age 37 Kansas City At A Glance (Rent/SF/YR) low High effective avg. Vacancy doWntoWn offIce Premium (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal $ $ $ $ $ N/A 18.25 14.00 29.50 18.75 14.50 $ $ $ $ $ N/A 23.50 21.00 29.50 32.00 27.00 N/A $ 18.30 $ 15.87 $ 29.50 $ 21.80 $ 17.16 N/A 15.40% 25.60% 100.00% 15.20% 18.50% Bulk Warehouse Manufacturing High Tech/R&D retaIl $ $ $ 3.25 2.75 4.00 $ $ $ 5.85 6.05 16.50 $ $ $ 3.85 3.35 7.52 6.50% 8.30% 13.80% Downtown Neighborhood Service Centers Community Power Center Regional Malls $ $ $ $ 10.00 8.75 14.00 13.00 $ $ $ $ 24.25 26.00 23.65 35.00 $ 13.59 $ 12.32 $ 17.35 $ 25.75 5.80% 14.30% 6.80% 6.60% deVeloPment land Low/Acre High/Acre Office in CBD $ 1,829,520.00 $ 3,789,720.00 Land in Office Parks $ 163,350.00 $ 588,060.00 Land in Industrial Parks Office/Industrial Land - Non-park $ $ 40,000.00 30,000.00 $ $ 175,000.00 200,000.00 Retail/Commercial Land Residential $ 40,000.00 N/A $ 1,089,000.00 N/A St. Louis At A Glance (Rent/SF/YR) low High effective avg. Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls $ $ $ $ $ $ $ $ $ $ $ $ N/A 16.00 11.00 30.00 20.00 15.50 2.75 2.00 7.25 7.00 8.00 8.00 12.75 $ $ $ $ $ $ $ $ $ $ $ $ N/A 23.00 16.00 35.00 30.00 20.00 5.50 5.95 12.00 20.50 22.00 20.00 39.00 $ $ $ $ $ $ $ $ $ $ $ $ N/A 19.25 14.60 31.00 23.25 17.50 3.80 2.75 9.00 11.20 12.60 13.40 15.95 N/A 12.10% 17.50% 4.20% 10.50% 11.70% 8.80% 31.00% 33.00% 4.20% 10.70% 8.90% 8.80% deVeloPment land Low/Acre High/Acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park $ $ $ N/A 174,240.00 87,120.00 45,000.00 $ $ $ N/A 392,040.00 324,522.00 304,920.00 Retail/Commercial Land $ 174,240.00 $ 2,215,000.00 Residential $ 21,780.00 $ 522,720.00 2012 Global Market Report n www.naiglobal.com 109
Billings, Montana Bozeman, Montana Contact NAI Business Properties +1 406 256 5000 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income 161,619 175,892 87,109 $63,824 Billings is Montana’s largest city located in the heart of the Northern Rockies. Billings is an urban trade center with the most diverse economy in the state, highlighted by the healthcare industry and energy development. Retailers continue to see growth in the market. The industrial sector has seen positive absorption primarily due to the proximity to the Bakken oil field in eastern Montana and western North Dakota. The office market saw a 15% to 20% decrease in rental rates and demand. Vacancy rates stayed somewhat level. Smaller transactions dominated the activity. Vacancy rates dropped in the overall market from 12.51% to 9.92% in 2011. The industrial market continued to see a decrease in the availability of space as energy firms and distributors slowly absorbed product. Wilson Supply was the largest lease at 18,000 SF. The total available square footage decreased to approximately 549,000. This is the lowest level since 2003. No new spec projects were announced. The retail market started to gain momentum as retailers increased their expansion into the market. Carmike Cinemas, Cabela’s and Sam’s Club were the notable entries. The first “de-mall” in the state of Montana was commenced in 2009 at the former West Park Plaza in Central Billings. The project is anchored by Sears and Hastings. Vacancy rates in the retail sector were below 5% in the power center areas as Billings continued to service a regional retail trade area of over 300,000. This trade area is unique to the region as Billings is the largest city for 500 miles in any direction. Investments were slow in the market due to lack of product available for sale. Owners continued to keep product out of the market for fear that replacement properties could not be found. Multifamily product showed low vacancy rates in the market and new product continued to come on line in 2011. Unemployment remained between 7% and 8% for the Yellowstone County. Contact NAI Landmark +1 406 556 5005 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income 98,729 104,807 58,328 $62,344 Bozeman is the primary urban center in southwestern Montana and is the seat of Gallatin County with a population of 90,000. Located just 90 miles north of Yellowstone National Park and only 45 miles north of the Big Sky resort community, Bozeman represents an attractive primary and secondary home market. Gallatin County continues to be the fastest growing county in the state. Anchored by an economy rich in agriculture, the greater Bozeman market has emerged as a trade region built on the business spin-offs of research successes of Montana State University, making Bozeman one of the leading smaller urban centers in the nation. Bozeman’s economy continues to be a primary performer in the state with 2.1% annual growth. Major employers are Montana State University, RightNow Technologies and Ligocyte Pharmaceuticals. While the southwest Montana economy is somewhat cushioned from the volatility experienced nationally, there has been a softening in demand for office and retail product that will likely slow the absorption of a small oversupply. Vacancy is estimated at 8% in the office segment and 7% in the retail markets. Market rents have firmed from the 2009 highs, in the range of $14 to $16/SF per year for Class A space, but softened to $7 to $10/SF per year for Class B space. Recent retail tenants to ink deals are REI for 30,000 SF, Kohl’s, Ulta Cosmetics and Shoe Carnival. In the industrial sector, warehouse demand has weakened slightly with the decline in new housing starts. Demand is limited for high-tech flex and R&D space. In 2011, the local commercial markets can anticipate a more aggressive entry of bank-owned property with the potential for a further softening of property values through the bank sell-off period. The historic downtown Bozeman retail and office markets remain one of the state’s finest. New private investment downtown has been stimulated by a $12 million, 435-car parking garage. A natural gas explosion in March of 2009 destroyed a quarter of a city block that is now in redevelopment. Median Household Income $ 50,726 Median Household Income $48,724 Total Population Median Age 37 Total Population Median Age 39 Billings At A Glance (Rent/SF/YR) low High effective avg. Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal $ $ $ $ $ $ 24.00 16.00 10.00 18.00 12.00 9.00 $ $ $ $ $ $ 28.00 22.00 14.00 26.00 16.00 12.00 $ 26.00 $ 19.00 $ 12.00 $ 20.00 $ 14.00 $ 10.00 N/A 4.00% 16.00% 15.00% 10.00% 11.00% Bulk Warehouse Manufacturing $ $ 2.25 3.50 $ $ 4.75 6.00 $ $ 3.50 5.00 6.00% 4.00% High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls $ $ $ $ $ 14.00 8.00 9.00 14.00 22.00 $ $ $ $ $ 16.00 14.00 13.00 19.00 28.00 $ 15.00 $ 12.00 $ 11.00 $ 16.50 $ 25.00 N/A 11.00% 9.00% 5.00% 5.00% deVeloPment land Low/Acre High/Acre Office in CBD $ 875,000.00 $ 1,100,000.00 Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential $ $ $ $ $ 217,800.00 87,000.00 100,000.00 305,000.00 60,000.00 $ $ $ $ $ 304,000.00 200,000.00 120,000.00 609,000.00 175,000.00 Bozeman At A Glance (Rent/SF/YR) low High effective avg. Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) $ $ 12.00 14.00 $ $ 17.00 16.00 $ 14.50 $ 15.00 2.00% 8.00% Class B (Secondary) suburban offIce $ 7.00 $ 9.00 $ 8.00 8.00% New Construction (AAA) Class A (Prime) $ $ 13.00 10.00 $ $ 14.00 12.00 $ 13.50 $ 11.00 9.00% 15.00% Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl $ $ $ $ 7.00 3.75 4.25 6.50 $ $ $ $ 10.00 4.75 5.00 9.00 $ $ $ $ 8.50 4.25 4.75 7.75 18.00% 18.00% 15.00% 7.00% Downtown $ 13.00 $ 18.00 $ 15.50 7.00% Neighborhood Service Centers $ 8.00 $ 10.00 $ 9.00 8.00% Community Power Center Regional Malls $ $ 16.00 18.00 $ $ 25.00 25.00 $ 20.50 $ 21.50 8.00% 3.00% deVeloPment land Low/Acre High/Acre Office in CBD $ 850,000.00 $ 1,200,000.00 Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential $ $ $ $ $ 185,000.00 98,000.00 85,000.00 275,000.00 12,500.00 $ $ $ $ $ 218,000.00 175,000.00 165,000.00 435,000.00 40,000.00 2012 Global Market Report n www.naiglobal.com 110
Page 1 and 2:
2012 Global Market report Values, t
Page 3 and 4:
n n n table of contents General Inf
Page 5 and 6:
Global Outlook US Year in Review As
Page 7 and 8:
On the Road to Recovery % of Loss S
Page 9 and 10:
55% (1.1 million) owning and 45% (8
Page 11 and 12:
short-term leases, the multifamily
Page 13 and 14:
Alberta is home to Canada’s oil a
Page 15 and 16:
Office The sovereign debt crisis an
Page 17 and 18:
Area Type Q1 2010 Q2 2010 Q3 2010 Q
Page 19 and 20:
obust telecom infrastructure and av
Page 21 and 22:
egion’s cities. Nevertheless, lea
Page 23 and 24:
For 2012, absorption in the commerc
Page 25 and 26:
n us Highlights - northeast region
Page 27 and 28:
n us Highlights - midwest region n
Page 29 and 30:
n us Highlights - West region n Ari
Page 31 and 32:
Adelaide, Australia Brisbane, Austr
Page 33 and 34:
Sydney, Australia Beijing, China Co
Page 35 and 36:
Shanghai, China Shenzhen, China Con
Page 37 and 38:
Chennai, India Mumbai, India Contac
Page 39 and 40:
Jakarta, Indonesia Tokyo, Japan Con
Page 41 and 42:
Christchurch, New Zealand Wellingto
Page 43 and 44:
Taipei, Taiwan Ho Chi Minh City, Vi
Page 45 and 46:
Calgary, Alberta, Canada Edmonton,
Page 47 and 48:
Halifax, Nova Scotia, Canada Ottawa
Page 49 and 50:
Regina, Saskatchewan, Canada Contac
Page 51 and 52:
The Baltics (Latvia/Estonia/Lithuan
Page 53 and 54:
Helsinki, Finland Paris - lle de Fr
Page 55 and 56:
Tel Aviv, Israel Almaty, Kazakhstan
Page 57 and 58:
Amsterdam, The Netherlands Oslo, No
Page 59 and 60: Moscow, Russia St. Petersburg, Russ
Page 61 and 62: Madrid, Spain Stockholm, Sweden Con
Page 63 and 64: Istanbul, Turkey Kiev, Ukraine Cont
Page 65 and 66: Leeds, England, United Kingdom Lond
Page 67 and 68: Latin America sectIon contents Buen
Page 69 and 70: Rio de Janeiro, Brazil Sao Paulo, B
Page 71 and 72: San Jose, Costa Rica Contact NAI Co
Page 73 and 74: Guadalajara, Jalisco, Mexico Guanaj
Page 75 and 76: Mexico City, Mexico Contact NAI Mex
Page 77 and 78: Saltillo, Coahuila, Mexico San Luis
Page 79 and 80: Lima, Peru Caracas, Venezuela Conta
Page 81 and 82: Birmingham, Alabama Huntsville/Deca
Page 83 and 84: Little Rock, Arkansas Bakersfield,
Page 85 and 86: Oakland, California Orange County,
Page 87 and 88: San Francisco, California Ventura C
Page 89 and 90: Hartford, Connecticut Wilmington, D
Page 91 and 92: Fort Lauderdale, Florida Ft. Myers/
Page 93 and 94: Miami, Florida Ocala/Gainesville, F
Page 95 and 96: Tampa Bay, Florida Atlanta, Georgia
Page 97 and 98: Boise, Idaho Southeast (Idaho Falls
Page 99 and 100: Fort Wayne, Indiana Indianapolis, I
Page 101 and 102: Des Moines, Iowa Sioux City, Iowa C
Page 103 and 104: Baton Rouge, Louisiana Lake Charles
Page 105 and 106: Greater Portland, Maine Baltimore,
Page 107 and 108: Greater Springfield, Massachusetts
Page 109: Minneapolis/St. Paul, Minnesota Jac
Page 113 and 114: Omaha, Nebraska Las Vegas, Nevada C
Page 115 and 116: Portsmouth, New Hampshire Atlantic
Page 117 and 118: Ocean/Monmouth Counties (“Shore M
Page 119 and 120: Las Cruces, New Mexico Albany, New
Page 121 and 122: Westchester, New York Asheville, No
Page 123 and 124: Raleigh/Durham, North Carolina Farg
Page 125 and 126: Cincinnati, Ohio Cleveland, Ohio Co
Page 127 and 128: Oklahoma City, Oklahoma Tulsa, Okla
Page 129 and 130: Berks County, Pennsylvania Bucks Co
Page 131 and 132: Philadelphia, Pennsylvania Philadel
Page 133 and 134: Wilkes-Barre/Scranton/Hazleton, Pen
Page 135 and 136: Sioux Falls, South Dakota Chattanoo
Page 137 and 138: Memphis, Tennessee Nashville, Tenne
Page 139 and 140: Corpus Christi, Texas Dallas, Texas
Page 141 and 142: Houston, Texas Contact NAI Houston
Page 143 and 144: Salt Lake City, Utah Washington Cou
Page 145 and 146: Northern Virginia Seattle/Puget Sou
Page 147 and 148: Madison, Wisconsin Milwaukee, Wisco
Page 149 and 150: n Glossary n Acre Area of land equa
show all

2012 Global Market report - NAI Global

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?