2012 Global Market report - NAI Global

Missoula, Montana
Lincoln, Nebraska
Contact
NAI Crowley Moore
+1 406 721 1111
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
110,961
117,590
62,210
$57,760
$43,637
Missoula is known as the “Garden City” and is Montana’s
second largest city, with a population of approximately
64,000. Missoula is the center of higher education,
medicine, business, retail shopping, entertainment, culture
and recreation for Western Montana. According to Salish
Tribal History the word “Missoula” means “the cold chilling
waters”.
Traditionally timber and mining were the primary industries
throughout the state. Over the last two decades Missoula’s
economy has diversified with major growth in tourism, retail,
medicine, manufacturing, trucking and customer service
centers. Missoula is located on Interstate 90 approximately
198 miles east of Spokane, Washington and 352 miles west
of Billings, Montana. Missoula is located at the junction of
Interstate 90 and Highway 93.
Residential home sales are slow. The Old Saw Mill District
located across the Clark Fork River from Missoula’s CBD is
expected to receive subdivision approval in 2012. The motel
sector is still expanding with the construction of a new
Holiday Inn Express. The Stimson lumber mill in Bonner
closed in 2008 and the site is now under contract for sale
to a local developer. Missoula’s Trade Area population
continues to grow with the 2011 tertiary trade area
estimated at over 361,000.
Retail expansion is slow on North Reserve Street despite the
additions of Harbor Freight Tools and Tuesday Morning.
Macy’s downtown location is vacant. National restaurant
expansion continues with the addition of Buffalo Wild Wings
adjacent to Home Depot. One brewery and two brew pubs
have been added to the downtown market.
Missoula County Development Park located adjacent to
the Missoula County International Airport has only a few
remaining lots for sale. A sewer main extension has been
constructed along Highway 10 to the Wye, allowing for
commercial and residential development. Development in
multifamily units has increased with nearly 400 units under
construction. Vacancy rates average approximately 4%. The
average rental rate for a one bedroom apartment is $ 675
per month. The unemployment rate is 7.1%.
Contact
NAI FMA Realty
+1 402 441 5800
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
306,090
326,247
176,853
$65,499
$53,061
Lincoln’s market continues to fare better than many larger
cities in the US with its diverse stable economy and skilled
workforce. Unemployment remains among the lowest in the
country. The capital city appeals to start-ups and industry
leading companies eager to take advantage of its business
climate and quality of life. Advanced manufacturing, finance
and healthcare are major growth industries. Recent publicprivate
developments have led to more construction cranes
in the CBD than in decades.
Post-recession the office markets have been the slowest to
recover. Leasing activity, however, started to pick up in Q2
2011, with overall vacancy now at 11.6%. Competitive rates
and incentive packages spurred office deals to close. Office
sales to end-users and investors are increasing. One of the
largest lease signings was Gallup Inc. (29,000 SF) for a redevelopment
project in the southeast submarket.
The retail market experienced a rebound in 2011 and remains
the strongest sector. Overall the vacancy rate declined to 8.3%
with net absorption of 382,583 SF in the last year. Much of
this positive movement was driven by attractive rental rates
and little new development. Vacant Class A locations have
backfilled quickly. Sam’s Club announced a second location
in south Lincoln while Natural Grocers by Vitamin Cottage,
Cheddar’s Casual Café, Topper’s Pizza, Dickey’s BBQ and
White House Black Market entered the market.
Lincoln’s industrial market showed signs of life as the overall
vacancy rate declined to the lowest level reported at 8.0%
since its peak at 12.2% Q2 2010. Nevertheless lower vacancy
has not translated into higher lease rates or new construction.
Rates will remain soft until additional jobs are created. Northwest,
the hardest hit submarket during the recession that
peaked at 1.8 million SF vacant, is gaining interest from tenants.
Industrial sales activity remains mostly limited to users
looking for bargains.
The investment market intensified as local investors competed
with national investors for properties. Significant transactions
were Casey’s General Stores acquisition of 44-convenience
store chain for $45.8 million; two CBD office transactions over
$5 million; and notably, the $22 million paid for a 152,000
SF office 100% leased to Dell Perot Systems.
Total Population
Median Age
33
Total Population
Median Age
31
Missoula 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)
$ 16.00
$ 14.00
$ 10.00
N/A
$ 12.00
$ 23.00
$ 18.00
$ 15.00
N/A
$ 16.00
$ 16.00
$ 15.00
$ 11.00
N/A
$ 13.50
16.00%
7.00%
6.00%
N/A
7.00%
Class B (Secondary)
IndustrIal
$ 9.00 $ 14.00 $ 12.00 7.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
1.00
1.00
N/A
$
$
6.00
8.00
N/A
$
$
4.00
5.00
N/A
8.00%
6.00%
N/A
Downtown
Neighborhood Service Centers
$
$
9.00
9.00
$ 21.00
$ 13.00
$ 15.00
$ 11.00
10.00%
9.00%
Community Power Center
Regional Malls
$ 15.00
$ 16.00
$ 18.00
$ 30.00
$ 16.00
$ 25.00
3.00%
2.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
$ 1,306,800.00
N/A
$ 2,178,000.00
N/A
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
150,000.00
100,000.00
300,000.00
50,000.00
$
$
$
$
200,000.00
170,000.00
500,000.00
125,000.00
Lincoln 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
$
$
$
$
$
N/A
14.75
8.00
12.50
17.00
8.00
$
$
$
$
$
N/A
20.00
22.00
21.00
23.00
22.00
N/A
$ 16.16
$ 15.27
$ 18.35
$ 20.64
$ 15.52
N/A
7.30%
17.30%
62.20%
7.20%
13.40%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
$
$
$
$
2.00
2.00
4.00
6.00
$
$
$
$
8.00
5.00
12.00
19.00
$
$
$
$
4.27
2.30
6.45
8.75
8.10%
8.10%
8.20%
12.50%
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
6.00
6.00
23.00
$
$
$
25.00
25.00
35.00
$ 13.19
$ 11.76
$ 25.18
11.40%
10.10%
17.10%
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
N/A
55,000.00
40,000.00
65,000.00
$
$
$
N/A
280,000.00
110,000.00
326,000.00
Retail/Commercial Land
$ 230,000.00 $ 1,800,000.00
Residential
$ 25,000.00 $ 100,000.00
2012 Global Market Report n www.naiglobal.com 111