2012 Global Market report - NAI Global

Omaha, Nebraska
Las Vegas, Nevada
Contact
NAI NP Dodge
+1 402 255 6060
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
881,493
946,003
483,004
Located in the middle of the US, the greater Omaha market
(consisting of nearly one million people) has remained relatively
stable. In fact, Brookings Institution recently ranked Omaha as
one of the “20 strongest performing metro areas” (Brookings
Institution – September 2011). And Yahoo! ranked Omaha as
the number three place with “good jobs and cheap housing.
(Yahoo! Finance – July 2011).
In Q3 of 2011, Omaha's office market experienced its first
quarter of negative absorption in more than two years.
However, this is not necessarily the result of a weakened
market, as the leasing activity remains strong. The Class A
vacancy rate remains consistently under 7% while the Class
B appears stable around 16 %.
The recent retail deals have been smaller in size with more
landlord concessions being given. With the exception of new
product, rental rates have fallen slightly. There have been more
deals done with non-traditional retailers, such as Goodwill
Industries and local colleges and churches. Borders recently
closed a few stores in the market and several once strong retail
projects, such as Crossroads Mall, are now being planned for
redevelopment due to high vacancy rates. Overall retail
vacancy for Omaha is 11.5%. Restaurants seem to be the
most active, with new concepts continuing to be brought to
Omaha.
The Omaha industrial market experienced its fifth consecutive
quarter of positive absorption. Owner-user sales accounted for
a significant percentage of the positive absorption in Q3.
Tenants are looking for and finding (in some cases) space that
is already built out to reduce their cost of moving. Rates
are low and stable. Incentives and free rents are firming
up. Virtually no spec building is occurring which is making
suitable available inventory harder to obtain but causing
existing inventory to become leased up, thus the decrease in
vacancy rate from 6.7% to 5.9%.
Contact
NAI Las Vegas
+1 702 796 8888
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
2,003,765
2,238,165
1,048,594
Despite having lead the nation in many categories in 2011,
such as unemployment and foreclosures, southern Nevada
made other headlines that suggest the market is bouncing
along the bottom. On a year-over-year basis gaming revenue,
visitor volume and taxable sales have increased. Auction.com
held one of the largest commercial real estate auctions in US
history in May putting $1 billion worth of local REO and notes
on the block. Roughly 90% of the assets traded.
Property sales in southern Nevada have increased in 2011
as compared to the past few years. By Q3 approximately 2.75
million SF traded at an average price of $67/SF. The most
notable activity could be largely attributed to one group. MIG
Real Estate based in Newport Beach, California invested more
than $62 million in Las Vegas. Their acquisition activity is
comprised of four office complexes and a shopping center.
MIG resold one of the office complexes, comprised of
100,000 SF, for $14.5 million in July. MIG paid 68% less for
the property 10 months prior.
Through Q3 of 2011 office vacancy ended at 19.3%. Total
inventory was approximately 60,500,000 SF with 334,000
SF of positive net absorption. Average asking rental rates for
all classes was $20.64/SF per year. 10 new buildings were
completed totaling 664,227 SF with 592,677 SF under
construction.
Industrial vacancy decreased to 15.3%. Total inventory is
approximately 112,264,620 SF with -253,771 SF of net
absorption. Rental rates ended at $6.28/SF per year. Two new
building were completed totaling 44,938 SF with 0 SF under
construction.
Retail vacancy decreased to 10.9%. Total inventory
comprised of all property classes is approximately
115,905,499 SF with -426,623 SF of net absorption.
Average asking rents have fallen to $17.63 SF per year. Eight
new buildings were completed totaling 44,938 SF with
400,743 SF currently under construction.
Household
Average Income
$70,745
Household
Average Income
$76,550
Median
Household Income
$57,900
Median
Household Income
$59,706
Total Population
Median Age
34
Total Population
Median Age
34
Omaha 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
18.00
12.50
N/A
19.75
9.25
N/A
$ 25.00
$ 18.50
N/A
$ 30.81
$ 25.00
N/A
$ 20.00
$ 14.74
N/A
$ 24.80
$ 18.72
N/A
7.20%
17.20%
N/A
6.50%
15.00%
Bulk Warehouse
Manufacturing
$
$
1.75
1.00
$
$
4.66
3.65
$
$
3.00
2.33
7.30%
2.80%
High Tech/R&D
retaIl
$ 3.50 $ 12.00 $ 5.99 9.20%
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
3.25
9.30
7.53
6.00
$ 25.00
$ 19.81
$ 22.29
$ 34.00
$ 10.27
$ 11.97
$ 15.30
$ 11.93
5.00%
13.00%
11.30%
19.50%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 1,655,280.00 $ 1,655,280.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
196,020.00
87,000.00
N/A
N/A
N/A
$
$
522,720.00
196,000.00
N/A
N/A
N/A
Las Vegas 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
16.20
9.00
N/A
18.60
9.20
$
$
$
$
N/A
30.00
24.00
N/A
30.72
24.00
N/A
$ 23.00
$ 16.50
N/A
$ 30.12
$ 20.40
N/A
6.80%
6.50%
N/A
30.50%
21.50%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
4.32
4.20
6.00
$
$
$
8.52
6.00
9.48
$
$
$
4.80
5.10
7.74
10.20%
14.70%
29.70%
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
5.04
14.04
11.88
N/A
$
$
$
14.76
21.12
23.88
N/A
$ 13.32
$ 16.32
$ 19.32
N/A
18.80%
13.70%
11.00%
N/A
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
N/A
172,413.00
100,443.00
160,000.00
100,000.00
100,000.00
$
$
$
$
$
N/A
802,238.00
212,000.00
430,000.00
501,279.00
430,633.00
2012 Global Market Report n www.naiglobal.com 112