2012 Global Market report - NAI Global

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Columbus, Ohio Dayton, Ohio Contact NAI Ohio Equities +1 614 224 2400 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income 1,950,778 2,094,016 1,038,444 $71,754 Columbus continues to lead the state in job growth, population growth and new development, due in large part to Columbus being the state capital and home to the Ohio State University, Battelle Memorial Research Institute, health industry leader Cardinal Health, Nationwide Insurance and the Limited Brand family of stores. Major hospital systems Ohio Health, University Hospitals and Mount Carmel Health Systems continue to compete for market share with new physician sourced medical office development. Downtown, Class A and Class B office product showed positive net absorption. The same was true in the suburbs, with Class B buildings out performing Class A product. Rental rates fell slightly in all office markets as a result of landlords aggressively chasing tenant renewals. Many office leases had rates reduced and terms extended, as tenants took advantage of landlords hoping to stabilize assets that would need refinancing in the next few years. Landlords offering gross leases continue to see the most leasing activity. Tepid absorption in all segments of the warehouse market is the good news, with vacancy decreasing slightly in bulk and manufacturing space. Interest from national retailers for new development has slowed substantially. The fast, casual restaurant category is the only segment of the retail market with new store growth. Retail rates remain stagnate with the exception of some newly announced boutique centers that are asking and getting net rates in the mid $20’s. Residential development of all kinds is virtually non-existent with the exception of a few urban based, for rent development projects Single family developers continue to pick up undeveloped blanks from lenders and competitors who hope to resume building once the existing inventory starts to be absorbed. Cap rates for all investment products seem to have stabilized. Properties that had been trading at 7% capitalization now hover around 9%. The central Ohio economy continues to chug along with the bulk of activity being generated by local operators not pulled down by economies outside our region. Contact NAI Dayton +1 937 294 7777 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income 979,855 978,802 496,219 $62,806 The national capital markets have been selectively increasing credit for trophy and single tenant net leased properties. The recession has ended and vacancy rates in the industrial sector are finally leveling off. However, the office sector and retail sector have been subject to downsizing in addition to significant rent renegotiations. The Dayton office sector ended Q3 2011 with a vacancy rate of 14.3%, unchanged from the previous quarter, but an increase over 2010’s rate of 12.8%. There was positive absorption of 30.490 SF. Rental rates ended Q3 2011 at $14.30/SF an increase over the previous quarter, but a decrease over 2010’s rate of $14.42/SF. There were 52,507 SF delivered in Q3 2011. The largest lease signing was for 30,000 SF by a medical group at 10500 Innovation Drive. The strongest submarkets remain the south market. The Dayton industrial sector ended Q3 2011 with a vacancy rate of 13.6%, a reduction from the previous quarter, and a reduction over 2010’s rate of 14.1%. There was positive absorption of 1,474,211 SF for Q3 2011. Rental rates ended Q3 2011 at $3.28/SF, a decrease over the previous quarter and 2010’s rate of $3.48/SF. A total of 1,500,000 SF were delivered in Q3 2011 with no sites under construction. The largest lease signing was for 84,200 SF by Macy’s at IWC East Extension. The strongest submarkets remain the south market. The Dayton retail sector ended Q3 2011 with a vacancy rate of 8.9%, a reduction from the previous quarter and 2010’s rate of 9.2%. There was negative net absorption of 42,360 SF for the Q3 2011. Rental rates ended Q3 2011 at $9.23/SF, an increase over the previous quarter, but a decrease over 2010’s rate of $9.34/SF. A total of 8,320 SF were delivered in Q3 2011 with no sites under construction. The stronger submarkets remain the south and northeast markets. Median Household Income $58,502 Median Household Income $50,890 Total Population Median Age 37 Total Population Median Age 38 Columbus At A Glance (Rent/SF/YR) low High effective avg. Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) $ N/A 9.00 $ N/A 20.00 N/A $ 14.00 N/A 14.20% Class B (Secondary) suburban offIce $ 6.00 $ 16.95 $ 8.00 17.60% New Construction (AAA) Class A (Prime) $ $ 15.00 10.00 $ $ 18.50 16.50 $ 15.00 $ 11.00 50.00% 15.80% Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl $ $ $ $ 5.00 1.00 1.00 3.50 $ $ $ $ 12.95 3.25 3.95 7.95 $ $ $ $ 7.00 2.20 1.75 5.75 15.70% 15.20% 5.20% 17.10% Downtown Neighborhood Service Centers Community Power Center Regional Malls $ $ $ 10.00 8.00 9.00 N/A $ $ $ 16.50 35.00 15.50 N/A $ 12.50 $ 12.00 $ 11.50 N/A 35.00% 11.50% 10.00% N/A deVeloPment land Low/Acre High/Acre Office in CBD $ 650,000.00 $ 1,100,000.00 Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential $ $ $ $ $ 125,000.00 45,000.00 35,000.00 50,000.00 34,000.00 $ $ $ $ $ 175,000.00 75,000.00 150,000.00 500,000.00 50,000.00 Dayton 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) $ $ $ $ $ 15.50 12.00 6.00 15.00 12.50 $ $ $ $ $ 21.00 18.25 12.50 20.00 18.00 $ 17.25 $ 15.25 $ 10.45 $ 17.25 $ 14.25 22.50% 18.00% 12.00% 15.50% 16.30% Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers $ $ $ $ $ 5.00 1.65 N/A 4.50 5.00 4.50 $ $ $ $ $ 10.00 4.50 N/A 12.00 12.00 14.00 $ $ $ $ $ 7.25 3.55 N/A 9.75 7.50 9.65 10.50% 12.50% N/A 21.50% 9.00% 19.30% Community Power Center Regional Malls $ $ 11.00 15.00 $ $ 14.00 32.00 $ 11.75 $ 21.00 6.40% 7.20% deVeloPment land Low/Acre High/Acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park $ $ $ $ 182,500.00 20,000.00 22,200.00 14,000.00 $ $ $ $ 478,000.00 165,000.00 54,550.00 42,500.00 Retail/Commercial Land $ 50,000.00 $ 1,150,000.00 Residential $ 2,500.00 $ 135,000.00 2012 Global Market Report n www.naiglobal.com 125
Oklahoma City, Oklahoma Tulsa, Oklahoma Contact NAI Sullivan Group +1 405 840 0600 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 1,350,615 1,463,724 682,889 $63,807 $49,397 Oklahoma City continues to lead the nation in low unemployment at 5.5%. The energy sector is continuing to add jobs at a rapid pace. Continental Resources announced it will be relocating to Oklahoma City bringing 400 jobs, Devon will finish its 53 story $750 million tower in 2012 and Chesapeake Energy continues rapid expansion of its Oklahoma City campus. Oklahoma City continues to expand with its one cent sales tax adding over $100 million in public buildings and improvements annually. The office market continues to lead the demand sector as energy companies continue to expand. Overall office market vacancy is at 9.4% with lease rates for Class A space above $19/SF in the suburban market. Chesapeake Energy has acquired over 2 million SF of office space in addition to expanding its corporate campus. The CBD is also experiencing growth with the addition of Sand Ridge Energy and the energy sector in general, fueling lower vacancies and higher rates. The industrial market has had very little new construction in four years as rates for bulk warehouse space remain at a consistent $3.86/SF level. Warehouse space is beginning to tighten, especially for large users. Overall vacancy on bulk warehouse space is 5.5% while the overall warehouse market is at 6.4%. We will see a lot of upward pressure on rates as no new construction is taking place. The retail market remains active with new entries into the Oklahoma City market especially for food service. Whole Foods also opened their first Oklahoma store. A 300,000 SF outlet mall also opened this year. Retail vacancy is below 8% and rates have upward pressure. The multifamily market has experienced the most construction activity adding 1,500 units. Sales of larger, newer complexes also drive the multifamily market with cap rates averaging 8%. The overall investment markets remains sluggish outside multifamily sales as investors look to larger markets and more value add plays. The local economy never suffered through this recession as the rest of the country did and therefore no "bargains" are currently on the market. Contact NAI Commercial Properties +1 918 745 1133 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 952,215 1,011,162 486,803 $64,122 $48,185 Tulsa’s market in 2011 remains stable with some moderate improvements in most sectors. While lending and tightened credit conditions have stifled investment and acquisition activity over the last few years, Tulsa’s 6.3% unemployment continues to outpace the nation. Tulsa’s lower unemployment has contributed to a noticeable uptick in lease activity thus helping lower vacancies from 2010. Tulsa’s energy and manufacturing tied industries continue to lead Tulsa’s improving market conditions. The office market remains stable despite a percentage drop in vacancy. The overall vacancy for Tulsa is 75.8% in a market totaling 22 million SF, which is down from 76.8% last year. The average rental rate is $14.54/SF with the suburban sector pushing averages of $15.08/SF with Class A and Class B property rents at or near $20/SF. The vacancy rates should see improvement by Q1 or Q2 2012 as more demand and less supply for larger 20,000 blocks of space. Tulsa’s retail market is starting to see new national tenants to the market despite an unchanged vacancy rate from 2010 at around 12.11% for an 18.8million SF market. Newer power centers are seeing new national retailer interest from BuyBuy Baby, Dick’s Sporting Goods, Northern Tools and a variety of specialty grocers like Sprouts, Green Acres and Sunflower Market. Weighted average rents for Tulsa retail centers have increased slightly to $11.59/SF for 2011. With development and a good job market, Tulsa’s retail market should be poised for continued positive growth. The industrial market in contrast has shown positive absorption in 2011 with 500,000 SF in a 74 million SF market. The overall vacancy has dropped to 8% compared to 10.4% in 2010. Average lease rates experienced a slight increase up to $4.55/SF. Lease activity is strongest in the manufacturing sector (energy and oilfield related), particularly with crane facilities, accounting for 90% of the year-to-date absorption. Bulk warehouse and flex service building vacancies did see a slight increases to 26% and 14% respectively. Investment/land hospitality was not active for the Tulsa market in 2011. Downtown Tulsa continues to see stronger demand from retail, hospitality, mixed use and residential from ongoing public and private revitalization efforts. Total Population Median Age 36 Total Population Median Age 35 Oklahoma City 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 18.00 14.00 19.00 18.00 14.50 $ $ $ $ $ $ 23.00 20.00 15.50 23.00 19.00 16.00 $ 22.00 $ 19.00 $ 14.75 $ 21.00 $ 18.50 $ 15.25 14.10% 14.20% 9.70% 14.40% 12.60% 9.20% Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown $ $ $ 3.25 3.50 7.00 N/A $ $ $ 4.50 5.00 9.50 N/A $ $ $ 3.86 4.25 8.25 N/A 5.50% 14.00% 17.60% N/A Neighborhood Service Centers Sub Regional Centers Regional Malls $ $ $ 8.50 13.00 13.50 $ $ $ 11.50 14.00 16.50 $ 10.50 $ 13.50 $ 15.00 7.20% 3.20% 20.10% 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 $ $ $ $ $ $ 265,000.00 400,000.00 100,000.00 275,000.00 135,000.00 8,000.00 $ $ $ $ $ $ 655,000.00 550,000.00 125,000.00 425,000.00 300,000.00 18,000.00 Tulsa 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 $ $ $ $ $ NA 14.00 11.00 19.00 13.50 11.50 $ $ $ $ $ NA 19.00 15.00 26.00 22.00 16.00 NA $ 16.34 $ 12.76 $ 22.00 $ 19.80 $ 15.04 NA 8.10% 31.60% N/A 7.40% 18.20% Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown $ $ $ $ 4.00 3.15 5.00 6.00 $ $ $ $ 5.25 5.50 9.00 26.00 $ $ $ 4.34 4.03 6.43 N/A 26.00% 8.00% 14.00% N/A Neighborhood Service Centers Community Power Center Regional Malls $ $ $ 6.00 12.00 20.00 $ $ $ 28.00 28.00 40.00 $ 11.59 $ 14.27 N/A 15.10% 14.40% N/A deVeloPment land Low/Acre High/Acre Office in CBD $ 300,000.00 $ 1,306,800.00 Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park $ $ $ 200,000.00 33,000.00 30,000.00 $ $ $ 785,000.00 217,800.00 239,580.00 Retail/Commercial Land $ 237,400.00 $ 1,220,000.00 Residential $ 15,000.00 $ 52,000.00 2012 Global Market Report n www.naiglobal.com 126
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2012 Global Market report Values, t
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n n n table of contents General Inf
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Global Outlook US Year in Review As
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On the Road to Recovery % of Loss S
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55% (1.1 million) owning and 45% (8
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short-term leases, the multifamily
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Alberta is home to Canada’s oil a
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Office The sovereign debt crisis an
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Area Type Q1 2010 Q2 2010 Q3 2010 Q
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obust telecom infrastructure and av
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egion’s cities. Nevertheless, lea
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For 2012, absorption in the commerc
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n us Highlights - northeast region
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n us Highlights - midwest region n
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n us Highlights - West region n Ari
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Adelaide, Australia Brisbane, Austr
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Sydney, Australia Beijing, China Co
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Shanghai, China Shenzhen, China Con
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Chennai, India Mumbai, India Contac
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Jakarta, Indonesia Tokyo, Japan Con
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Christchurch, New Zealand Wellingto
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Taipei, Taiwan Ho Chi Minh City, Vi
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Calgary, Alberta, Canada Edmonton,
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Halifax, Nova Scotia, Canada Ottawa
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Regina, Saskatchewan, Canada Contac
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The Baltics (Latvia/Estonia/Lithuan
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Helsinki, Finland Paris - lle de Fr
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Tel Aviv, Israel Almaty, Kazakhstan
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Amsterdam, The Netherlands Oslo, No
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Moscow, Russia St. Petersburg, Russ
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Madrid, Spain Stockholm, Sweden Con
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Istanbul, Turkey Kiev, Ukraine Cont
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Leeds, England, United Kingdom Lond
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Latin America sectIon contents Buen
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Rio de Janeiro, Brazil Sao Paulo, B
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San Jose, Costa Rica Contact NAI Co
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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 and 110: Minneapolis/St. Paul, Minnesota Jac
Page 111 and 112: Billings, Montana Bozeman, Montana
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: Cincinnati, Ohio Cleveland, Ohio Co
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
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