2012 Global Market report - NAI Global

Phoenix, Arizona
Jonesboro, Arkansas
Contact
NAI Horizon
+1 602 955 4000
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
4,208,147
4,283,239
2,083,427
$76,063
$57,789
33
The economic pressures on the Phoenix metropolitan area
are in line with many markets across the US as the world’s
economies struggle to avoid recession. This is fueled by the
European economic crisis, rising debt concerns in the US
and an economy that continues to stagnate. Continued
weakness in the Phoenix area’s housing market has resulted
in slow economic growth. As a city that relies on population
growth, Phoenix will continue to struggle until the economy
rebounds.
One of the few bright spots in the local economy is the
growing stability of the commercial real estate industry.
Activity has remained steady overall but with slower growth
and suppressed rental rates. The freefall from a few years
ago is just about over. Each sector has its strengths and
areas of continued trouble. All sectors are significantly
healthier and more stable than during the decline of
2008-2009.
The area experiencing the healthiest rebound has been the
multifamily sector. Private investors continue to buy top
apartment properties in many US markets, especially in
cities like Phoenix where the stagnant housing market and
continued job insecurity makes sense for these investments.
The office market’s sales transactions have increased over
the past several quarters, but dollar volume is nearly half of
last quarter’s total. Many of the transactions involve A+
properties selling for half of what they sold for in 2006.
Savvy investors know that values like this will not be
available for long and have been aggressive in their deal
making.
The industrial sector continues to see large leases and sales
of big box properties throughout the Valley. Several large
investors such as Cole Real Estate are gobbling up
properties quickly. Main Street’s move to the Internet has
aggravated retail (much to the benefit of the industrial
sector).
Both the lower and higher end of the retail continuum are
faring better. Discount and high end retailers have embraced
growth in the market. Meanwhile traditional retailers
continue to struggle with changing customer buying habits
as a result of the poor economy.
Contact
NAI Halsey
+1 870 972 9191
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
123,152
131,623
60,451
$53,233
$39,299
33
Jonesboro continues to be one of the brightest spots in the
mid-south for growth and investment. As a regional
hub, Jonesboro boasts a trade area over 500,000 people,
drawing from nearly two dozen counties in Arkansas,
Tennessee and Missouri. The city has grown 40% since
1990, and current census estimates that pace of 2% to
2.5% growth will continue for the next 10 to 20 years.
Jonesboro is home to Arkansas State University, one of the
south’s up and coming premiere research institutions which
continues to set enrollment records. Specialized training and
partnership programs between ASU and the international
community continue to add global manufacturing to the
city’s diverse mix of market segments. Nordex USA
completed its $100 million plant construction and started
production.
The financial sector continues to be strong. IBERIA Bank
recently made a significant downtown facilities investment.
Southern Bank of Commerce continues its growth
undergoing a major expansion and renovation on Nettleton
Avenue and Stephen’s Inc., the largest investment banking
firm off Wall Street, has opened a newly constructed office
in the city’s premiere professional office park.
NEA Baptist is in construction on its new $300 million
healthcare facility that will include clinical space for over
120 physicians as well as a state of the art hospital.
St. Bernards Heathcare continues its development of the
“Medical Mile” connecting ASU to downtown Jonesboro with
the opening of the new 55,000 SF Health & Wellness Center.
Ritter Communications is preparing to move into a new
high-tech corporate campus.
Downtown Jonesboro continues its unparalleled growth of
new offices, lofts and restaurants. Vox 306 has opened on
Church Street, and Bennigan’s leads a list of new
restaurants set to open in the coming months. The Stadium
Boulevard corridor now boasts new locations for Red Lobster
and Longhorn Steakhouse, both reporting record openings,
with Cheddar’s, Panera Bread and high end jewelry retailer
Sissy’s Log Cabin to follow. A new Harp’s grocery superstore
nearing completion on Highland Drive; and the region’s
largest CAT dealership (Holt Ag) has selected Jonesboro as
its newest market.
Phoenix 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
$
$
$
$
$
$
20.00
17.00
8.00
25.00
16.00
5.00
$ 36.00
$ 36.00
$ 24.00
$ 30.00
$ 35.00
$ 46.20
$ 36.00
$ 22.62
$ 18.26
$ 27.39
$ 24.06
$ 16.71
28.00%
19.90%
21.10%
42.00%
25.10%
21.10%
Bulk Warehouse
Manufacturing
$
$
2.16
2.28
$ 10.80
$ 15.00
$
$
4.81
6.73
14.70%
12.80%
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
$
4.20
4.61
1.00
5.52
6.00
$ 18.00
$ 38.00
$ 38.00
$ 35.00
$ 40.00
$ 11.01
$ 17.66
$ 14.35
$ 18.87
$ 18.97
23.40%
14.10%
16.90%
8.60%
18.90%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 414,000.00 $ 5,663,125.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
39,204.00
21,344.00
81,632.00
81,450.00
25,000.00
$
$
$
$
$
556,174.00
696,960.00
522,719.00
425,324.00
571,429.00
Jonesboro 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)
N/A
$ 14.00
$ 10.00
$ 18.00
$ 12.00
$
$
$
$
N/A
22.00
16.00
22.00
20.00
N/A
$ 12.00
$ 15.00
$ 18.00
$ 18.00
N/A
N/A
N/A
10.00%
10.00%
Class B (Secondary)
IndustrIal
$ 8.00 $ 15.00 $ 12.00 10.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
$ 3.00
N/A
N/A
N/A
$ 6.00
N/A
N/A
N/A
$ 3.50
N/A
N/A
N/A
10.00%
N/A
N/A
N/A
Neighborhood Service Centers
Community Power Center
Regional Malls
$ 10.00
N/A
$ 18.00
$
$
22.00
N/A
32.00
$ 14.00
N/A
$ 25.00
N/A
N/A
10.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
N/A
$ 120,000.00 $
N/A
330,000.00
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
5,000.00
5,000.00
N/A
8,000.00
$
$
$
25,000.00
15,000.00
N/A
20,000.00
2012 Global Market Report n www.naiglobal.com 81