2012 Global Market report - NAI Global
2012 Global Market report - NAI Global
2012 Global Market report - NAI Global
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Corpus Christi, Texas<br />
Dallas, Texas<br />
Contact<br />
<strong>NAI</strong> Cravey Real Estate<br />
Services<br />
+1 361 289 5168<br />
Metropolitan Area<br />
Economic Overview<br />
2011<br />
Population<br />
2016 Estimated<br />
Population<br />
Employment<br />
Population<br />
Household<br />
Average Income<br />
Median<br />
Household Income<br />
Total Population<br />
Median Age<br />
435,351<br />
464,558<br />
204,865<br />
$61,057<br />
$44,086<br />
34<br />
The City of Corpus Christi is growing and its future is looking<br />
brighter. The industrial sector continues to drive the growth<br />
of the city. Many of the projects currently under construction<br />
are so large that it will take years to complete. This should<br />
guarantee many more years of sustained growth.<br />
Downtown Class A office space continues to be in high<br />
demand. Partly because there are only two Class A buildings<br />
and because of favorable rental rates. Most of the leasing<br />
has come from medical and engineering firms. Older Class<br />
C buildings still have the lowest occupancy rates that barely<br />
cover expenses. Recently the Prosperity Bank Building,<br />
a Class B building, was taken back by the lender. Several<br />
other Class B and Class C buildings are on the brink of foreclosure.<br />
The industrial sector continues to be the bright spot in the<br />
market. The oil and gas industry, which includes exploration,<br />
service and refining, are pumping millions of dollars into the<br />
economy. A Chinese owned firm, TIPCO, has broken ground<br />
for a billion dollar pipe manufacturing plant for the oil industry.<br />
The Corpus Christi Port Authority has begun dredging<br />
the 45 foot deep LaQuinta Trade Gateway Terminal Project,<br />
a 1,100 acre Greenfield site. There are plans for a three<br />
berth ship dock with cranes, rail yard, warehousing complex<br />
and cargo and container storage yard as a result of the<br />
Panama Canal expansion.<br />
Anchored retail centers are doing well. Smaller, unanchored<br />
centers have the highest vacancy. Three new Super<br />
Walmarts are due to open; in Flour Bluff, on the former<br />
Parkdale Plaza site and on Saratoga Boulevard. The<br />
proposed 700,000 SF outlet mall at the Nueces County<br />
Fairgrounds in Robstown is moving forward. The recently<br />
remodeled LaPalmera Mall is doing well, however Sunrise<br />
Mall that was taken back by IBC Bank several years ago has<br />
still not been sold. However, Planet Fitness has leased the<br />
former Mervyn’s space in Sunrise Mall.<br />
Contact<br />
<strong>NAI</strong> Robert Lynn<br />
+1 214 256 7100<br />
Metropolitan Area<br />
Economic Overview<br />
2011<br />
Population<br />
2016 Estimated<br />
Population<br />
Employment<br />
Population<br />
Household<br />
Average Income<br />
Median<br />
Household Income<br />
Total Population<br />
Median Age<br />
6,474,711<br />
6,887,534<br />
3,424,361<br />
$79,063<br />
$57,898<br />
32<br />
The Dallas commercial real estate market is poised for what<br />
should be a remarkable run in the coming years with<br />
multiple billion dollar infrastructure projects geared toward<br />
serving an ever growing population and economy. Dallas<br />
Fort Worth is a united economic region with multiple cities<br />
and counties offering a variety of lifestyles and amenities.<br />
Fueled by job growth, owners and developers are turning<br />
optimistic, and there is quite a bit of speculation regarding<br />
new construction. Industrial will surely see activity in <strong>2012</strong>,<br />
and office should follow. Rates for Class A industrial have<br />
stabilized and are rising up, as the majority of new space<br />
has been absorbed or is about to be leased. The 11%<br />
vacancy is a bit misleading as most of the vacant product is<br />
Class B and Class C. Class A office tenants are willing to<br />
pay a premium for modern, green buildings as the highest<br />
rates in Dallas Fort Worth are still a fraction of those in other<br />
major markets.<br />
The downtown/uptown market has realized positive<br />
absorption with many leading companies gobbling up prime<br />
spaces, including a number of relocations from the<br />
suburban markets. Recent improvements to the arts district<br />
and addition of the deck park are transforming downtown<br />
and uptown to the vibrant, economic generation we all think<br />
it can become. In 2011 retail expansion continues to be led<br />
by discount stores and fast food. Lack of new construction<br />
will help fill existing vacancies. The average vacancy rate<br />
continued to go down in Dallas markets. Even non anchored<br />
convenience centers have seen their vacancy reduced. The<br />
Dallas area retail market should continue to see recovery<br />
into <strong>2012</strong>. The area has received a shot in the arm from<br />
Walmart, ALDI and Kroger which have together opened over<br />
20 stores in the past 12 months. The area is likely 24 to 36<br />
months away from seeing new development.<br />
Corpus Christi At A Glance<br />
(Rent/SF/YR) low High effective avg. Vacancy<br />
doWntoWn offIce<br />
New Construction (AAA)<br />
Class A (Prime)<br />
N/A<br />
$ 17.00<br />
N/A<br />
$ 22.00<br />
N/A<br />
$ 19.50<br />
N/A<br />
18.00%<br />
Class B (Secondary)<br />
suburban offIce<br />
New Construction (AAA)<br />
$ 9.00<br />
N/A<br />
$ 13.00<br />
N/A<br />
$ 11.00<br />
N/A<br />
28.00%<br />
N/A<br />
Class A (Prime)<br />
$ 13.00 $ 17.00 $ 15.00 14.00%<br />
Class B (Secondary)<br />
IndustrIal<br />
$ 9.00 $ 13.00 $ 11.00 13.00%<br />
Bulk Warehouse<br />
Manufacturing<br />
$ 3.60<br />
N/A<br />
$ 6.00<br />
N/A<br />
$ 4.80<br />
N/A<br />
6.00%<br />
N/A<br />
High Tech/R&D<br />
retaIl<br />
Downtown<br />
$<br />
$<br />
6.00<br />
6.00<br />
$ 12.00<br />
$ 11.00<br />
$<br />
$<br />
9.00<br />
8.50<br />
9.00%<br />
60.00%<br />
Neighborhood Service Centers $ 10.00 $ 28.00 $ 19.00 14.00%<br />
Sub Regional Centers<br />
Regional Malls<br />
$<br />
$<br />
9.00<br />
9.75<br />
$ 28.00<br />
$ 28.00<br />
$ 18.50<br />
$ 18.88<br />
12.00%<br />
52.00%<br />
deVeloPment land Low/Acre High/Acre<br />
Office in CBD<br />
Land in Office Parks<br />
Land in Industrial Parks<br />
Office/Industrial Land - Non-park<br />
Retail/Commercial Land<br />
Residential<br />
$<br />
$<br />
$<br />
$<br />
$<br />
$<br />
348,480.00<br />
76,230.00<br />
76,230.00<br />
15,000.00<br />
196,020.00<br />
15,000.00<br />
$<br />
$<br />
$<br />
$<br />
$<br />
$<br />
522,720.00<br />
196,000.00<br />
196,000.00<br />
108,900.00<br />
784,080.00<br />
350,000.00<br />
Dallas At A Glance<br />
(Rent/SF/YR) low High effective avg. Vacancy<br />
doWntoWn offIce<br />
New Construction (AAA)<br />
Class A (Prime)<br />
Class B (Secondary)<br />
suburban offIce<br />
New Construction (AAA)<br />
Class A (Prime)<br />
Class B (Secondary)<br />
IndustrIal<br />
N/A<br />
$ 15.00<br />
$ 10.00<br />
$ 21.00<br />
$ 14.00<br />
$ 11.00<br />
$<br />
$<br />
$<br />
$<br />
$<br />
N/A<br />
35.00<br />
20.00<br />
35.00<br />
45.00<br />
27.00<br />
N/A<br />
$ 17.00<br />
$ 15.00<br />
$ 25.00<br />
$ 24.00<br />
$ 17.00<br />
N/A<br />
29.00%<br />
47.00%<br />
90.00%<br />
16.00%<br />
26.00%<br />
Bulk Warehouse<br />
Manufacturing<br />
High Tech/R&D<br />
retaIl<br />
$<br />
$<br />
$<br />
1.50<br />
1.50<br />
5.00<br />
$<br />
$<br />
$<br />
4.00<br />
4.00<br />
13.00<br />
$<br />
$<br />
$<br />
2.00<br />
2.00<br />
6.50<br />
11.00%<br />
11.00%<br />
13.00%<br />
Downtown<br />
$ 10.00 $ 30.00 $ 20.00 3.00%<br />
Neighborhood Service Centers<br />
Sub Regional Centers<br />
$<br />
$<br />
6.00<br />
8.00<br />
$<br />
$<br />
60.00<br />
30.00<br />
$ 33.00<br />
$ 19.00<br />
8.00%<br />
13.00%<br />
Regional Malls<br />
$ 30.00 $ 60.00 $ 45.00 12.00%<br />
deVeloPment land Low/Acre High/Acre<br />
Office in CBD<br />
Land in Office Parks<br />
Land in Industrial Parks<br />
Office/Industrial Land - Non-park<br />
Retail/Commercial Land<br />
Residential<br />
$<br />
$<br />
$<br />
N/A<br />
N/A<br />
85,000.00<br />
70,000.00<br />
87,000.00<br />
N/A<br />
N/A<br />
N/A<br />
$ 220,000.00<br />
$ 160,000.00<br />
$ 871,200.00<br />
N/A<br />
<strong>2012</strong> <strong>Global</strong> <strong>Market</strong> Report n www.naiglobal.com 138
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