2012 Global Market report - NAI Global

Portland, Oregon
Allentown/Bethlehem/Easton, Pennsylvania
Contact
NAI Norris, Beggs
& Simpson
+1 503 223 7181
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
2,254,428
2,368,028
1,219,167
$75,468
$57,948
36
Portland metropolitan area unemployment fell to near the
national average of about 9% during 2011, down from a peak
of more than 11% at the height of the recession. Job creation
will continue to be a key area of focus for local leaders in
2012. Technology and renewable energy companies continue
to expand and invest in the area; these companies included
Subaru, SoloPower, eBay and ON Semiconductor.
Despite economic conditions, Portland’s CBD office market
has remained fairly healthy, with vacancy between 12% and
13% in 2011. Downtown landlords are converting a number
of historic buildings with higher vacancy into LEED-certified
creative space, including the Spalding and Yeon Buildings.
The suburban office submarkets have not fared as well,
with vacancy above 23% in 2011, but showed a slight
improvement near year-end. Vancouver got a boost as
PeaceHealh leased 162,000 SF at Columbia Tech Center for
its new headquarters.
The industrial market saw considerable improvement in the
second half of 2011. Subaru moved into a 413,700 SF facility
it built on 20 acres at Rivergate Corporate Center III, and
SoloPower leased 225,250 SF at Marine Drive Distribution
Center. Both of the ports in Portland and Vancouver continue
to flourish; United Grain Corporation set out on a $72 million
expansion in Vancouver that is expected to nearly double the
port’s grain exports.
The retail market was flat during 2011, with vacancy hovering
around 6.3%. Grocery anchored centers continue to be a
preferred center type and Beaverton’s Progress Ridge Town
Square, anchored by New Seasons Market, delivered in 2011.
Grocers from Walmart to WinCo to New Seasons, a local
chain, are seeking new locations around the metro area.
Portland’s multifamily market, one of the strongest in the
nation, saw vacancy under 3% throughout 2011. With rents
rising significantly, concessions falling and little new
development in the past four years, developers are purchasing
land to build on in 2012 and 2013. Institutional investors are
also ramping up acquisitions, especially of high quality, core
properties, which are trading at low cap rates.
2012 should see continued strength in Portland’s multifamily
market, and gradual improvement in the office, industrial and
retail sectors. Portland’s concentration of green and tech
companies, educated workforce and location will continue
to attract new businesses and investment.
Contact
NAI Summit
+1 610 264 0200
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
829,337
862,088
431,309
$75,075
$59,068
39
The Lehigh Valley, located in eastern Pennsylvania, offers
all of the amenities of the major urban areas. The Lehigh
Valley is the third largest region in Pennsylvania. It is well
situated, 95 miles to New York City and 53 miles north of
Philadelphia. The Lehigh Valley is an excellent location for
business and industry. The Lehigh Valley has 11 higher
learning institutions and national recognized healthcare
facilities.
The area consists of an enterprising and diversified economy
that has led to higher-income jobs, a growing and thriving
population and tremendous commercial and industrial
growth in the region. The Lehigh Valley is home to some of
the world’s top corporations in a variety of fields, including
Air Products and Chemicals Inc., B. Braun Medical Inc.,
Binney & Smith, Olympus and many others.
Excellent transportation access also exerts an important
influence on the Lehigh Valley. The most important highways
are Route 22, Interstate 78, which connects the Lehigh
Valley with Harrisburg to the west and New Jersey to the
east, and major roadways such as Interstate 81 and 83 to
the north. Route 22 provides fast, limited access between
Allentown, Bethlehem and Easton. The Extension of the
Pennsylvania Turnpike and Route 309 can also be accessed
off Route 22 and Interstate 78, which connects Philadelphia
with Wilkes-Barre and Scranton areas. The area is also
served by the Lehigh Valley International Airport.
The Lehigh Valley remains an attractive market to investors,
importers, exporters, manufacturers and high-tech companies.
Developers, enticed by abundant land, favorable taxes, the
lure of railway access and infrastructure, continue to secure
land positions along Route 22 and Interstate 78 corridors.
Rental rates in all markets are competitive and have
remained relatively stable.
The industrial and healthcare markets continue to be one
of the nation’s largest growth areas. Modern shopping malls,
big-box and lifestyle centers remain popular. Several
developments have recently been completed, included
Airport Plaza located at the interchange of Route 22 and
Airport Road in Allentown and Bethlehem Plaza in Bethlehem
along Route 191.
Portland 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
16.26
8.52
20.00
15.00
5.72
$
$
$
$
$
N/A
31.61
26.00
21.00
34.65
26.69
N/A
$ 25.20
$ 19.91
$ 20.08
$ 24.29
$ 18.23
N/A
9.30%
14.10%
N/A
25.20%
21.70%
Bulk Warehouse
Manufacturing
$
$
4.48
4.48
$
$
11.34
13.86
$
$
5.20
5.91
14.40%
10.80%
High Tech/R&D
retaIl
$ 6.00 $ 23.32 $ 10.32 18.20%
Downtown
$ 8.00 $ 140.00 $ 21.26 8.40%
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
12.00
22.00
16.00
$
$
$
35.00
40.00
32.00
$ 12.30
$ 19.80
$ 20.98
7.40%
5.00%
6.90%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 2,432,218.00 $ 17,674,419.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
239,580.00
153,000.00
131,000.00
$
$
$
653,400.00
240,000.00
261,000.00
Retail/Commercial Land
$ 174,240.00 $ 1,306,800.00
Residential
$ 200,000.00 $ 750,000.00
Allentown/Bethlehem/Easton 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
N/A
N/A
N/A
$ 16.00
$ 10.00
$
$
N/A
N/A
N/A
N/A
21.00
15.00
$
$
N/A
N/A
N/A
N/A
17.00
13.50
N/A
N/A
N/A
N/A
14.10%
16.10%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
$
$
$
1.80
N/A
N/A
N/A
8.00
3.00
$
$
$
8.50
N/A
N/A
N/A
28.00
19.00
$
$
$
3.95
N/A
N/A
N/A
13.00
10.50
10.40%
N/A
N/A
N/A
10.20%
9.60%
Regional Malls
$ 10.00 $ 35.00 $ 12.00 2.70%
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
165,000.00
100,000.00
65,000.00
200,000.00
50,000.00
$
$
$
$
$
N/A
300,000.00
200,000.00
150,000.00
500,000.00
110,000.00
2012 Global Market Report n www.naiglobal.com 127