2012 Global Market report - NAI Global

More documents

Recommendations

Info

n us Highlights – southeast region n Alabama Florida Georgia Kentucky Mississippi office North Carolina South Carolina Tennessee The atlanta office market recorded positive absorption in 2011 with vacancy rates averaging 19% and rental rates continuing on a downward trend. Concessions reached a plateau, impacting small-to-midsized firms seeking space. Larger tenants continue to secure favorable terms as building owners are reluctant to subdivide bigger blocks of existing vacant space. The overall vacancy in the charlotte office market increased from 17.1% to 17.9% over the past year. In Ballantyne Corporate Park, the Bissell Companies continue to defy odds and is building three speculative buildings totaling 790,000 SF. The three premier submarkets in Charlotte - Downtown, Southpark and Ballantyne - continue to attract the majority of newer, higher end tenants. The office sector In miami remains divergent with vacancy in CBD, Brickell and other submarkets exceeding 20%. However, rental rates are stabilizing, though landlord concession package remain generous. The only new construction, Coral Gables’ 396 Alhambra Circle, is nearing completion with few leases signed. Expansions and a lack of new construction has led to five straight quarters of positive absorption in memphis’ office market. The direct vacancy rate is 19.7%, down from 20.4% at the same time last year. The orlando office market is improving with an overall vacancy rate of 13.7% and positive absorption of 811,570 SF as of Q3 2011. Rental rates are virtually unchanged from last year. Office cap rates have averaged 8.4%. Industrial atlanta’s industrial market, with over 10.7 million SF of leasing activity (as of Q3 2011) is on track to finish the year with the largest occupancy gains in several years. The increases are due to expansions, regional consolidations and some small new business growth. Vacancy rates dropped slightly to 13.6% while rental rates are down slightly from 2010. Jacksonville’s industrial warehouse leasing was notably stronger in 2011. Leasing and absorption are up but rental rates are down. Research/high tech space has lagged, but not enough to put a damper on the positive absorption over the past year. The memphis industrial market, a pillar of the region, has had two consecutive quarters of positive absorption putting direct vacancy at 14.3%. The market has been bolstered by large new leases for Trane, CEVA Logistics, Nike, Newegg and Cummins as well as several build-to-suit projects from Electrolux Home Products and Mitsubishi Electric Power Products. Industrial markets in miami improved, led by export growth with Brazil, Miami’s largest trading partner, with vacancies declining and rates increasing. The industrial market is also benefiting from the Port of Miami’s expansion, which includes increased capacity to accommodate new super container ships and a new cargo tunnel to improve vehicular access to the port. The orlando industrial market vacancy rate stands at 12% with annual positive net absorption totaling 1.2 million square feet as of Q3. Absorption has been strongest among warehouse and distribution buildings. Asking rents remained flat at $5.36/SF. retail atlanta’s retail market has seen some positive momentum with shopping centers seeing a majority of the activity as well as retailers backfilling some of the empty big-boxes. Vacancy remains in the 10% range and no new construction projects are on the horizon. Modest activity should continue to keep the market positive and slowly reduce the amount of vacant space available throughout 2012. After rising for three years, charlotte retail vacancies declined a modest 0.3%. Some of the larger shopping centers traded hands, with the new owners able to entice tenants by lowering lease rates and offering generous concessions. Many new grocers entered the knoxville retail market including Whole Foods, Trader Joe’s, Publix and Costco. Other noteworthy transactions include a new 100,000 SF Kroger’s, and Target’s 110,000 SF store at the new NorthShore Town Center. Demand for retail in miami is balanced and vacancy rates remain low. Well-capitalized retailers continue to expand and large national retailers are adding stores for the first time. Strong demand should result in rental rates in preferred markets growing over 10% and vacancy rates declining in 2012. Improvements continue in the orlando retail market with an overall vacancy rate of 7.3% and positive absorption of 807,900 SF. Asking rents trended lower over the year. New tenants are gradually filling formerly vacant big box space as Borders closed its Orlando area stores. leading Price class a markets Downtown Office Class A Suburban Office Class A leading Price retail markets Retail Downtown Retail Service Centers Retail Power Centers Retail Regional Malls Market Effective Avg. High Rent Vacancy Miami, Florida $ 40.93 $ 46.50 27.89% Palm Beach County, Florida $ 37.52 $ 50.00 19.40% Charleston, South Carolina $ 30.00 $ 32.00 4.90% Charlotte, North Carolina $ 27.00 $ 34.00 10.20% Tampa Bay, Florida $ 25.00 $ 28.00 30.00% Market Effective Avg. High Rent Vacancy Palm Beach County, Florida $ 30.86 $ 35.00 18.20% Miami, Florida $ 29.37 $ 42.66 22.30% Memphis, Tennessee $ 22.34 $ 28.75 11.10% Asheville, North Carolina $ 22.00 $ 26.00 16.50% Tampa Bay, Florida $ 18.00 $ 21.00 30.00% Market Effective Avg. High Rent Vacancy Miami, Florida $ 34.90 $ 45.00 3.49% Charleston, South Carolina $ 26.00 $ 34.00 8.10% Charlotte, North Carolina $ 25.00 $ 35.00 22.80% Palm Beach County, Florida $ 24.06 $ 40.00 4.97% Orlando, Florida $ 23.25 $ 32.50 4.10% Market Effective Avg. High Rent Vacancy Miami, Florida $ 22.46 $ 45.00 5.90% Palm Beach County, Florida $ 19.17 $ 36.31 3.80% Chattanooga, Tennessee $ 18.00 $ 20.00 10.00% Greensboro/High Point/Winston-Salem, North Carolina $ 18.00 $ 20.00 20.00% Birmingham, Alabama $ 12.80 $ 17.35 13.50% Market Effective Avg. High Rent Vacancy Miami, Florida $ 39.71 $ 50.00 1.50% Chattanooga, Tennessee $ 24.00 $ 30.00 10.00% Charlotte, North Carolina $ 17.44 $ 23.00 8.50% Orlando, Florida $ 16.30 $ 26.00 7.20% Memphis, Tennesseee $ 11.80 $ 22.00 16.20% Market Effective Avg. High Rent Vacancy Chattanooga, Tennessee $ 37.00 $ 50.00 10.00% Columbia, South Carolina $ 35.00 $ 45.00 16.40% Savannah, Georgia $ 35.00 $ 50.00 1.00% Greenville/Spartanburg, South Carolina $ 32.00 $ 38.00 2.00% Charleston, South Carolina $ 30.00 $ 40.00 9.00% leading Price Industrial markets Industrial Bulk Warehouse Industrial Manufacturing Industrial High Tech/R&D Market Effective Avg. High Rent Vacancy Palm Beach County, Florida $ 7.41 $ 9.50 9.20% Miami, Florida $ 6.89 $ 18.85 8.20% Orlando, Florida $ 4.76 $ 6.50 12.30% Tampa Bay, Florida $ 4.00 $ 6.00 25.00% Jacksonville, Florida $ 3.70 $ 7.29 10.40% Market Effective Avg. High Rent Vacancy Tampa Bay, Florida $ 5.00 $ 6.50 25.00% Birmingham, Alabama $ 4.50 $ 6.50 13.00% Asheville, North Carolina $ 4.25 $ 6.00 14.00% Savannah, Georgia $ 3.95 $ 4.35 15.50% Memphis, Tennessee $ 2.65 $ 5.00 10.00% Market Effective Avg. High Rent Vacancy Orlando, Florida $ 30.00 $ 30.00 5.20% Knoxville, Tennessee $ 12.50 $ 20.00 6.00% Miami, Florida $ 11.98 $ 23.00 10.80% Birmingham, Alabama $ 10.20 $ 12.50 8.00% Raliegh/Durham, North Carolina $ 7.50 $ 10.00 17.00% 2012 Global Market Report n www.naiglobal.com 25
n us Highlights – midwest region n office Illinois Indiana Iowa Michigan Minnesota Missouri Nebraska North Dakota Ohio South Dakota Wisconsin Conditions in chicago’s downtown office market have been improving for the past year, the beginning of a modest recovery following a nearly two year period of rising vacancy rates. Asking rents for Downtown Class A office space have increased to $42/SF and vacancy rates have declined to 15.4%. Suburban vacancy rates, typically higher and more volatile than downtown, have not responded as favorably to the recovery as downtown rates have. This is especially true of Class B and C space, which are still witnessing climbing vacancy rates amid weak demand. cleveland’s overall office vacancy rate ended the year at 13%. Leasing rates were flat and net absorption was slightly positive. The completion of the new medical mart and Horseshoe Casino will help increase activity downtown. The landscape will also change as Eaton Corporation, Ernst & Young and American Greetings will all move into new facilities. The leasing environment remains soft throughout the detroit suburbs but has shown improvement throughout the CBD primarily because Quicken Loans, DTE and Blue Cross Blue Shield have all completed relocations to Downtown. This momentum is attracting other corporations to follow suit. The kansas city office market worsened in 2011 as vacancy increased to 19.1% from 18.6% in 2010. Incentives from states and municipalities drove shifts from Missouri to Kansas, and to lesser extent, vice versa. Flight to quality continued, placing pricing pressure in all classes with larger submarkets seeing improvements in Class A vacancy, and declines in Class B vacancy and asking rents. st. louis office vacancy rates rose 1% in 2011 while rental rates are still declining slightly. The high-end Class A market is the brightest spot in St. Louis’ office market, with positive growth seen in the delivery of the 100% leased National Records & Archives building (474,690 SF), and the fully pre-leased BJC Healthcare HQ (300,000 SF) currently under construction. Industrial chicago, the second largest industrial market and the most important transportation hub in the country, has now been in a recovery phase for more than a year, evidenced by the absorption of vacant space and a declining vacancy rate, improving to 10.5%. The area’s intermodal developments continue to play an active role in the recovery, and now provide service with both BNSF and Union Pacific Railroads. Bolstered by steady improvement across the automotive, construction and transportation segments, cleveland’s industrial sector was stable in 2011. Rents were slightly softer, overall vacancy was under 10%, which is relatively unchanged from 2010, and new construction was limited to a small handful of build-to-suit projects. Continuing last year’s positive momentum, detroit’s industrial net absorption remained positive (6 million SF), signaling continued improvement and stability. Well located warehouse and flex space in Wayne and Oakland counties remains in demand. Michigan’s technology and alternative energy investments are a catalyst for the industrial markets, with start-up companies finding favorable tax incentives and a qualified labor pool. st. louis industrial vacancy rates climbed to 8.8% during 2011. Absorption for the year is negative 912,892S SF. This has placed further downwards pressure on asking rates which have dropped by nearly 4%. leading Price class a markets Downtown Office Class A Suburban Office Class A leading Price retail markets Retail Downtown Retail Service Centers Retail Power Centers Retail Regional Malls Market Effective Avg. High Rent Vacancy Chicago, Illinois $ 42.00 $ 55.00 15.40% Milwaukee, Wisconsin $ 30.00 $ 32.00 10.00% Detroit, Michigan $ 21.00 $ 23.00 18.00% St. Louis, Missouri $ 19.25 $ 23.00 14.40% Indianapolis, Indiana $ 19.06 $ 27.00 17.00% Market Effective Avg. High Rent Vacancy Chicago, Illinois $ 26.00 $ 33.00 21.30% Omaha, Nebraska $ 24.80 $ 30.81 6.50% St. Louis, Missouri $ 23.25 $ 30.00 10.50% Kansas City, Missouri $ 21.80 $ 32.00 15.20% Lincoln, Nebraska $ 20.64 $ 23.00 7.20% Market Effective Avg. High Rent Vacancy Madison, Wisconsin $ 20.00 $ 35.00 11.50% Detroit, Michigan $ 17.00 $ 35.00 14.00% Kansas City, Missouri $ 13.59 $ 24.25 5.80% Indianapolis, Indiana $ 13.40 $ 24.25 32.00% Omaha, Nebraska $ 10.27 $ 25.00 5.00% Market Effective Avg. High Rent Vacancy Milwaukee, Wisconsin $ 15.00 $ 25.00 8.00% Davenport, Iowa $ 14.50 $ 16.50 7.00% Akron, Ohio $ 13.50 $ 30.00 14.00% St. Louis, Missouri $ 12.60 $ 22.00 10.70% Grand Rapids, Michigan $ 8.50 $ 10.00 15.00% Market Effective Avg. High Rent Vacancy Kansas City, Missouri $ 17.35 $ 23.65 6.80% Milwaukee, Wisconsin $ 16.00 $ 24.00 7.00% Sioux City, Iowa $ 16.00 $ 22.00 11.00% Indianapolis, Indiana $ 13.76 $ 28.00 17.00% St. Louis, Missouri $ 13.40 $ 20.00 8.90% Market Effective Avg. High Rent Vacancy Milwaukee, Wisconsin $ 32.00 $ 60.00 5.00% Sioux City, Iowa $ 30.00 $ 40.00 7.50% Madison, Wisconsin $ 27.00 $ 50.00 1.00% Kansas City, Missouri $ 25.75 $ 35.00 6.60% Cedar Rapids, Iowa $ 17.00 $ 18.00 5.00% leading Price Industrial markets retail The cleveland retail sector’s leasing activity showed some improvement amid flat rents and limited new construction. The market has both good news and bad news. The good: large-scale retail development projects announced by First Interstate in Cleveland Heights and South Euclid, and by the Jacobs Group in Avon. The bad: continuing struggles among many retailers headlined by the bankruptcy filings of Borders Books and Blockbuster Video. Retail asking rents in columbus remain stagnant with the exception of several newly announced boutique centers that are asking and getting net effective rents in the mid $20/SF range. Retail leasing in detroit remains slow, with many power and strip centers suffering from the continued reduction in consumer spending. Average retail rents remained flat in the $15/SF to $20/SF range across the region. The kansas city retail market has improved, somewhat buoyed by continued repositioning of several centers and arrival of new retailers. The Legends Center near the Kansas Speedway was converted to an outlet format. New retailers to the area include Trader Joe’s, Nordstrom Rack, and Buy Buy Baby. The milwaukee retail market has had a slow, steady decline in vacancy rates with lease rates remaining relatively flat. Walmart and Target remains on a very aggressive expansion pace and is working through approvals for numerous new sites throughout the market. Traditional grocers are also continuing to expand their operations. Industrial Bulk Warehouse Industrial Manufacturing Industrial High Tech/R&D Market Effective Avg. High Rent Vacancy Fargo, North Dakota $ 5.40 $ 6.25 8.50% Detroit, Michigan $ 4.50 $ 9.00 13.00% Chicago, Illinois $ 4.10 $ 6.00 10.50% Milwaukee, Wisconsin $ 3.50 $ 3.50 7.90% Omaha, Nebraska $ 3.00 $ 4.66 7.30% Market Effective Avg. High Rent Vacancy Fargo, North Dakota $ 6.50 $ 7.00 7.00% Madison, Wisconsin $ 5.85 $ 9.50 1.40% Lansing, Michigan $ 4.50 $ 5.50 15.00% Chicago, Illinois $ 4.40 $ 6.25 10.50% Detroit, Michigan $ 3.25 $ 6.00 20.00% Market Effective Avg. High Rent Vacancy Fargo, North Dakota $ 6.50 $ 7.00 7.00% Madison, Wisconsin $ 5.85 $ 9.50 1.40% Lansing, Michigan $ 4.50 $ 5.50 15.00% Chicago, Illinois $ 4.40 $ 6.25 10.50% Detroit, Michigan $ 3.25 $ 6.00 20.00% 2012 Global Market Report n www.naiglobal.com 26
Page 1 and 2: 2012 Global Market report Values, t
Page 3 and 4: n n n table of contents General Inf
Page 5 and 6: Global Outlook US Year in Review As
Page 7 and 8: On the Road to Recovery % of Loss S
Page 9 and 10: 55% (1.1 million) owning and 45% (8
Page 11 and 12: short-term leases, the multifamily
Page 13 and 14: Alberta is home to Canada’s oil a
Page 15 and 16: Office The sovereign debt crisis an
Page 17 and 18: Area Type Q1 2010 Q2 2010 Q3 2010 Q
Page 19 and 20: obust telecom infrastructure and av
Page 21 and 22: egion’s cities. Nevertheless, lea
Page 23 and 24: For 2012, absorption in the commerc
Page 25: n us Highlights - northeast region
Page 29 and 30: n us Highlights - West region n Ari
Page 31 and 32: Adelaide, Australia Brisbane, Austr
Page 33 and 34: Sydney, Australia Beijing, China Co
Page 35 and 36: Shanghai, China Shenzhen, China Con
Page 37 and 38: Chennai, India Mumbai, India Contac
Page 39 and 40: Jakarta, Indonesia Tokyo, Japan Con
Page 41 and 42: Christchurch, New Zealand Wellingto
Page 43 and 44: Taipei, Taiwan Ho Chi Minh City, Vi
Page 45 and 46: Calgary, Alberta, Canada Edmonton,
Page 47 and 48: Halifax, Nova Scotia, Canada Ottawa
Page 49 and 50: Regina, Saskatchewan, Canada Contac
Page 51 and 52: The Baltics (Latvia/Estonia/Lithuan
Page 53 and 54: Helsinki, Finland Paris - lle de Fr
Page 55 and 56: Tel Aviv, Israel Almaty, Kazakhstan
Page 57 and 58: Amsterdam, The Netherlands Oslo, No
Page 59 and 60: Moscow, Russia St. Petersburg, Russ
Page 61 and 62: Madrid, Spain Stockholm, Sweden Con
Page 63 and 64: Istanbul, Turkey Kiev, Ukraine Cont
Page 65 and 66: Leeds, England, United Kingdom Lond
Page 67 and 68: Latin America sectIon contents Buen
Page 69 and 70: Rio de Janeiro, Brazil Sao Paulo, B
Page 71 and 72: San Jose, Costa Rica Contact NAI Co
Page 73 and 74: 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 and 126:
Cincinnati, Ohio Cleveland, Ohio Co
Page 127 and 128:
Oklahoma City, Oklahoma Tulsa, Okla
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
show all

2012 Global Market report - NAI Global

Create successful ePaper yourself

Delete template?

Save as template?