2012 Global Market report - NAI Global
2012 Global Market report - NAI Global
2012 Global Market report - NAI Global
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n us Highlights – southwest region<br />
n Arkansas<br />
Kansas<br />
Louisiana<br />
office<br />
Oklahoma<br />
Texas<br />
The austin office market continued to improve as limited speculative construction and relatively<br />
strong demand has resulted in lower vacancy and higher rents, with average asking rents at<br />
$35.08/SF for Downtown Class A space.<br />
dallas/ft. Worth’s office market had positive absorption as companies leased up CBD office<br />
space, including a number of relocations from suburban markets. Class A office tenants are willing<br />
to pay a premium for modern, green buildings as rents, at $35/SF, are still a fraction of those in<br />
other major markets.<br />
Houston’s office market continued to gain momentum in 2011, as an emphasis on international<br />
trade and a growing energy industry resulted in overall vacancy declining to 13.3% and average<br />
asking rents rising to $22.77/SF. Major energy companies including Chevron, BG Group and<br />
Nexen continue to sign large leases in the CBD.<br />
new orleans’ office market remains resilient and stable, with downtown Class A office offices<br />
roughly 89% leased at rates of $17-20/SF. The suburban market is at 90.6% occupancy, with<br />
rates of $22-24. A combination of new developments, a unique local culture, and a reviving<br />
tourism market have kept the city somewhat insulated from the national economic trends.<br />
Recent consolidations coupled with a migration of tenants away from multi-tenant space to buildto-suit<br />
facilities (including NuStar and Nationwide Insurance) softened the san antonio office vacancy<br />
rate to 19.9%. Restrained speculative construction and increased demand for space is<br />
expected to result in improving market conditions in <strong>2012</strong>.<br />
Industrial<br />
Activity within austin’s industrial leasing market was marked by tenant expansions and a handful<br />
of new relocations, generating healthy positive net absorption and tightening of the citywide<br />
vacancy rate. Rental rates have remained stable and landlord concessions are declining.<br />
The baton rouge industrial market has performing well with Westlake Chemical, Georgia Pacific,<br />
Honeywell and Formosa Plastics expanding their petro-chemical plants and others like Nucor<br />
building new plant along the Mississippi River. Bulk warehouse has a relatively high vacancy of<br />
15.3%, although demand for stand-alone buildings is increasing.<br />
Rental rates for Class A industrial space in dallas are increasing, as the majority of new space<br />
has been absorbed or is about to be leased. The 11% vacancy rate is a bit misleading, as most<br />
of the vacant product is less desirable Class B and Class C space.<br />
Rental rates for bulk warehouse space in the oklahoma city industrial market has remain at<br />
constant $3.86/SF. Demand is increasing with warehouse space options tightening, especially<br />
for large users. There will be upward pressure on rental rates as no new construction is taking<br />
place.<br />
retail<br />
Demand remains strong for well-located retail space in austin contributed to improved occupancy<br />
levels as tenants such as Nordstrom Rack and Sears Outlet are backfilling big box space vacated<br />
by Borders and Lack’s furniture. The restaurant market continued to perform well as new restaurant<br />
concepts expand in the area.<br />
Retail expansion in dallas/ft. Worth continues to be led by discount stores and fast food. Increasing<br />
demand and lack of new construction is leading to lower vacancy rates. The area has received a<br />
shot in the arm from Wal-Mart, ALDI and Kroger which have together opened over 20 stores in the<br />
past 12 months.<br />
The overall retail market in Houston is stable with a 12.4% vacancy rate and average asking<br />
rental rates at $19.20/SF. A total of 48 buildings have been delivered to the market totaling<br />
937,858 SF, with an additional 851,924 SF under construction.<br />
The oklahoma city retail market remains active with new entries into the market, especially for<br />
food service. Whole Foods opened their first Oklahoma store and a 300,000 SF outlet mall also<br />
opened this year. Retail vacancy is below 8% and rental rates have upward momentum.<br />
san antonio retail market remained stable with a vacancy rate of 13% and average rental rate<br />
of $18.21/SF. With the exception of the expansion of locally-based grocer H-E-B, development<br />
has been limited but large retailers are starting to get active in the area with a new Target currently<br />
under construction.<br />
leading Price class a markets<br />
Downtown Office<br />
Class A<br />
Suburban Office<br />
Class A<br />
leading Price retail markets<br />
Retail<br />
Downtown<br />
Retail<br />
Service Centers<br />
Retail<br />
Power Centers<br />
Retail<br />
Regional Malls<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
Houston, Texas $ 36.20 $ 41.95 12.00%<br />
Austin, Texas $ 35.08 $ 46.00 15.50%<br />
Fort Worth, Texas $ 24.00 $ 28.00 9.00%<br />
Baton Rouge, Louisiana $ 22.00 $ 23.00 20.00%<br />
San Antonio, Texas $ 20.80 $ 23.00 17.40%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
Houston, Texas $ 27.23 $ 40.73 14.00%<br />
Austin, Texas $ 25.81 $ 33.00 20.60%<br />
San Antonio, Texas $ 25.30 $ 28.00 15.90%<br />
Dallas, Texas $ 24.00 $ 45.00 16.00%<br />
New Orleans, Louisiana $ 22.30 $ 23.00 8.10%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
Houston, Texas $ 35.41 $ 49.74 5.00%<br />
New Orleans, Louisiana $ 27.50 $ 40.00 1.00%<br />
Austin, Texas $ 26.50 $ 41.00 5.00%<br />
San Antonio, Texas $ 23.08 $ 36.00 16.10%<br />
Fort Worth, Texas $ 18.75 $ 38.00 1.25%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
Dallas, Texas $ 33.00 $ 60.00 8.00%<br />
Corpus Christi, Texas $ 19.00 $ 28.00 14.00%<br />
McAllen/Mission, Texas $ 17.73 $ 27.00 0.15%<br />
San Antonio, Texas $ 16.32 $ 28.00 16.20%<br />
New Orleans, Louisiana $ 15.00 $ 18.00 1.50%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
McAllen/Mission, Texas $ 25.53 $ 36.00 0.20%<br />
Baton Rouge, Louisiana $ 25.00 $ 30.00 4.00%<br />
San Antonio, Texas $ 24.68 $ 40.00 8.10%<br />
Austin, Texas $ 22.25 $ 36.00 9.80%<br />
Houston, Texas $ 15.25 $ 30.00 7.00%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
McAllen/Mission, Texas $ 50.00 $ 75.00 0.06%<br />
Dallas, Texas $ 45.00 $ 60.00 12.00%<br />
New Orleans, Louisiana $ 41.25 $ 62.50 5.00%<br />
Baton Rouge, Louisiana $ 35.00 $ 80.00 n/a<br />
Jonesboro, AR $ 25.00 $ 32.00 10.00%<br />
leading Price Industrial markets<br />
Industrial<br />
Bulk Warehouse<br />
Industrial<br />
Manufacturing<br />
Industrial<br />
High Tech/R&D<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
McAllen/Mission, Texas $ 6.98 $ 12.00 0.25%<br />
Austin, Texas $ 5.56 $ 5.76 19.70%<br />
Houston, Texas $ 5.16 $ 7.14 5.00%<br />
Corpus Christi, Texas $ 4.80 $ 6.00 6.00%<br />
Baton Rouge, Louisiana $ 4.00 $ 5.15 15.13%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
Houston, Texas $ 6.60 $ 9.00 5.70%<br />
Austin, Texas $ 5.25 $ 7.20 15.00%<br />
Oklahoma City, Oklahoma $ 4.25 $ 5.00 14.00%<br />
Wichita, Kansas $ 4.25 $ 5.00 10.00%<br />
El Paso, Texas $ 3.60 $ 4.25 17.00%<br />
<strong>Market</strong> Effective Avg. High Rent Vacancy<br />
San Antonio, Texas $ 9.36 $ 16.75 15.70%<br />
Austin, Texas $ 9.20 $ 11.40 17.80%<br />
Corpus Christi, Texas $ 9.00 $ 12.00 9.00%<br />
Tulsa, Oklahome $ 6.43 $ 9.00 14.00%<br />
Fort Worth, Texas $ 4.50 $ 6.00 12.00%<br />
<strong>2012</strong> <strong>Global</strong> <strong>Market</strong> Report n www.naiglobal.com<br />
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