2012 Global Market report - NAI Global

Portsmouth, New Hampshire
Atlantic County, New Jersey
Contact
NAI Norwood Group
+1 603 431 3001
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
294,546
291,874
170,840
$94,347
$78,717
40
The New Hampshire Seacoast area’s economy appears to
be holding steady. Portsmouth’s unemployment rate
dropped slightly from 4.6% to 4.4%. Last year’s planned
projects are well underway and new plans for 2012 are on
the horizon. Portsmouth’s City Action Plan is specifically
targeting investors and business tenants by investing in
improvements and new construction.
The Portwalk Project that was put on hold in 2009, resumed
in 2011 and is nearly complete. The mixed use building will
hold retail space on the ground level and residential units
in the upper portion. Originally the plans included office
space, but as the needs of the market changed, so did the
plans. Another project in the works is the Service Credit
Union World Headquarters on Route 1 in Portsmouth. This
brand new facility is 100,000 SF and will be completed in
the summer of 2012. In July 2011 the
Memorial Bridge in Portsmouth was closed indefinitely due
to deterioration. The transportation department said the
closure was unavoidable. As of October 2011 the contract
to rebuild the bridge was awarded and the expected date
for the bridge to reopen is July 2013, a full year ahead of
the original plan. Speculation indicates that for Portsmouth
this means a potential 10% to 15% hit to businesses. On
the other side of the coin this could mean more business
stays in town rather than crossing over the bridge to Maine.
The Memorial Bridge is a main corridor for Route 1 traffic
between Portsmouth and Kittery. Regardless, both sides of
the bridge real estate remain to be in high demand.
Compared to the rest of the country, New Hampshire’s
economy is still considered robust. In a recent survey New
Hampshire residents showed they have more confidence
in their local economy than any other state. Among
other things, the state boasts one of the highest median
household incomes in the country at $61,042.
Contact
NAI Mertz
+1 856 234 9600
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
276,592
284,805
144,947
$75,939
$58,391
39
The Southern New Jersey shore area has traditionally been
dominated by the casino and tourism industries. Although
revenues at existing casinos have been greatly impacted
by increased competition from neighboring states, Atlantic
City and the State of NJ are aggressively working on
protecting their market. The area is diversifying and becoming
less dependent on just casinos and tourism. There has been
recent growth in the areas of healthcare, aviation research
technology, education and retail.
The newly created Casino and Entertainment Tourism
District will provide incentives and infrastructure for new
development. The new Revel Casino is scheduled to open
in 2012. In addition, recently passed legislation allows for
three smaller casinos, needing only 200 rooms and
200,000 SF of gaming space. The previous law required
500 hotel rooms and 500,000 SF of gaming space.
In healthcare, the area’s two major hospitals; Atlantic Care
in Atlantic City and Shore Memorial Hospital in Somers
Point, have both expanded on site.
At the Atlantic City Airport, infrastructure has begun on the
Next Genn Aviation Research and Technology Park which is
geared to provide engineering and research critically
needed to support the FAA. This will create many high
paying, non-casino related jobs.
The retail segment continues to grow. The Walk outlets in
Atlantic City added to their market with a just completed
second expansion. In Egg Harbor Township, plans have
recently been approved for Oak Tree Plaza, a Walmart
anchored center consisting of 270,170 SF scheduled for
2012.
The Atlantic County industrial market has picked up velocity
in 2011. Some landlords have claimed 100% occupancy
in their warehouse portfolios, many over 100,000 SF, while
others maintained vacancy due to new tenants occupying
older, vacant space and current tenants coming due on
lease terms without renewing. Landlords in this market
continue to be creative to secure tenants and generate
income. Lease terms vary widely throughout each lease,
averaging one year to five years. The average rental rate
in the Atlantic County industrial market ranges from
$7.00/SF NNN down to $3.50/SF NNN with an average
of $5.50/SF NNN, up from the previous year.
Portsmouth 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
15.00
10.00
N/A
9.00
N/A
N/A
4.00
N/A
25.00
10.00
N/A
N/A
$
$
$
$
$
$
N/A
30.00
13.00
N/A
20.00
N/A
N/A
8.00
N/A
35.00
15.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
15.00%
15.00%
N/A
10.00%
N/A
N/A
10.00%
N/A
5.00%
15.00%
N/A
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
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Atlantic County 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
$
$
$
$
$
$
21.00
15.00
12.00
17.00
16.00
12.00
$ 24.00
$ 18.00
$ 15.00
$ 20.00
$ 18.00
$ 15.00
$ 22.50
$ 16.50
$ 13.50
$ 18.50
$ 17.00
$ 13.50
N/A
N/A
N/A
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
$
$
3.50
2.00
$
$
7.00
4.25
$
$
5.50
3.12
14.00%
14.00%
High Tech/R&D
retaIl
$ 6.00 $ 11.00 $ 8.50 14.00%
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
8.00
10.00
12.00
22.00
$ 30.00
$ 14.00
$ 20.00
$ 30.00
$ 19.00
$ 12.00
$ 16.00
$ 26.00
N/A
N/A
N/A
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
N/A
N/A
50,000.00
70,000.00
10,000.00
$
$
$
N/A
N/A
N/A
75,000.00
95,000.00
50,000.00
2012 Global Market Report n www.naiglobal.com 114