2012 Global Market report - NAI Global

Wilkes-Barre/Scranton/Hazleton, Pennsylvania
Contact
NAI Mertz of
Pennsylvania
+1 570 820 7700
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
809,159
850,960
407,477
$60,623
$48,854
41
Northeastern Pennsylvania has continued to experience a
steady influx of energy companies. Wilkes-Barre, Scranton
and Hazleton have benefitted from their location within the
Marcellus Shale region, realizing increases in companies,
jobs and revenue. A number of national and international
powerhouses in the energy sector have set up shop in local
communities. Vacancy rates for many industrial owners
throughout the region have decreased. Shale activity has
also increased the volume and size of many local
businesses.
Land sales have also risen due to the requirements of the
natural gas firms. These companies and their service
providers need a substantial amount of outside storage.
Companies are leasing 5,000 SF but needing two acres of
land to store materials and equipment. In addition to the
shale play, the region continues to hold its own as a vital
location for distribution.
Companies such as Amazon.com and Archer Daniels
Midland have recognized the potential for the area due to
the incredible access to the entire Northeast. With
interstates such as 80, 81, 84, 180, 380, and the Northeast
Extension of the Pennsylvania Turnpike, Northeastern
Pennsylvania is a logistics and supply chain hot spot. More
distribution companies have moved into the area throughout
2011. Some have moved into new construction, while others
have taken advantage of lower lease rates. The office market
has seen Lord & Taylor bring back call center jobs from
overseas and Ciii expand their Tenant’s pharmaceutical
fulfillment center.
New office buildings in suburban settings have large
sub-lease availabilities attributable to downsizing, while
older office buildings in urban settings are finding it difficult
to compete with hospital owned spaces for desirable
professional leases. Users prefer to purchase rather than
lease, and many investors are also seeking purchases.
The retail market was affected by the fall flood of 2011, and
one investor may have decided not to rebuild. This will
reduce available retail space and tighten lease rates and
concessions. Mid size space has been absorbed by “dollar”
stores leaving a few large boxes and many small store
spaces. New construction is unlikely but possible, with large
single tenant/user space the likeliest prospect.
The Commonwealth Medical College enrolled its first class
in downtown Scranton, the first new medical school in three
decades.
Wilkes-Barre/Scranton/Hazleton 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
$ 16.00
$ 10.00
N/A
$ 14.00
$ 12.00
N/A
$ 20.00
$ 18.00
N/A
$ 20.00
$ 20.00
N/A
$ 18.00
$ 12.00
N/A
$ 16.00
$ 15.00
N/A
20.00%
22.00%
N/A
16.00%
10.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
0.99
0.99
N/A
$
$
4.25
3.50
N/A
$
$
2.75
2.15
N/A
10.00%
10.00%
N/A
Downtown
Neighborhood Service Centers
$
$
8.00
3.50
$ 18.00
$ 18.00
$ 13.00
$ 12.00
20.00%
22.00%
Community Power Center
Regional Malls
$ 12.00
$ 18.00
$ 20.00
$ 44.00
$ 15.00
$ 25.00
10.00%
10.00%
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
$
$
$
$
$
350,000.00
60,000.00
35,000.00
20,000.00
80,000.00
N/A
$
$
$
$
$
650,000.00
275,000.00
125,000.00
200,000.00
450,000.00
N/A
Charleston, South Carolina
Contact
NAI Avant
+1 843 720 4944
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
679,657
739,764
347,944
$68,603
$52,475
34
Charleston is a three county region with 664,607 people
residing in the three counties; Charleston, Berkeley and
Dorchester. It is home to the nation’s 10th largest container
port, several major Department of Defense facilities, the
Medical University of South Carolina, the Boeing Dreamliner
production facility and the historic Charleston Peninsula which
was reported as the nation’s top American tourist destination
according to the readers of Condé Nast Traveler magazine.
Charleston has approximately 23.5 million SF of office space.
Occupancy at mid year was 91.5%. Asking rents stabilized
over the last year although landlords continued to provide
concessions in the form of free rent and tenant improvement
allowances. One 63,000 SF building is planned for delivery
on the Peninsula in 2011.
The retail market has an inventory of 39 million SF. Rents in
Class A retail centers range from $15 to $23/SF. Rents in the
Peninsula market range from $28 to $44/SF. Occupancy fell
market wide by midyear to 91.9% largely as a result of several
big box national tenants closing their stores. Several other
grocery anchored centers are ready to begin construction
around the region.
The industrial market has 39.5 million SF of space available.
Occupancy fell at year end to 89.7%. Rents have remained
stable over the year. Several speculative buildings are planned
in anticipation of increased demand from port related
industries when the Panama Canal deepening is completed
in 2013.
The hospitality industry has stabilized and occupancy is
currently at 76.4% with an inventory of 17,600 rooms and
an average daily rate of $132. New developments that were
delayed are beginning to move through the approval process
with openings planned in early 2012. Cruise ship dockings
increased again in 2011 with up to 104 a year expected.
In summary, the outlook for Charleston is positive.
Employment has grown for 16 straight months. Tourism
is strong, manufacturing is expanding especially in the
aerospace sector and new knowledge industries continue
to enter and expand in the market to take advantage of the
workforce.
Charleston 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
$
$
$
$
$
26.00
28.00
21.00
N/A
18.00
13.00
$
$
$
$
$
30.00
32.00
23.00
N/A
26.00
18.00
$ 28.50
$ 30.00
$ 22.00
N/A
$ 22.00
$ 15.50
N/A
4.90%
4.20%
N/A
13.20%
12.20%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$ 3.50
N/A
N/A
$ 5.50
N/A
N/A
$ 4.50
N/A
N/A
10.10%
N/A
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
22.00
12.00
12.00
20.00
$
$
$
$
34.00
23.00
23.00
40.00
$ 26.00
$ 17.50
$ 17.50
$ 30.00
8.10%
11.50%
11.50%
9.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 1,100,000.00 $ 1,500,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
125,000.00
55,000.00
75,000.00
$
$
$
325,000.00
175,000.00
225,000.00
Retail/Commercial Land
$ 275,000.00 $ 1,400,000.00
Residential
$ 15,000.00 $ 110,000.00
2012 Global Market Report n www.naiglobal.com 132