2012 Global Market report - NAI Global

Hartford, Connecticut
Wilmington, DE (Cecil County, MD)
Contact
NAI Elite
+1 877 327 3755
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
1,221,605
1,267,861
663,585
$89,739
The Hartford region of Connecticut is known for being
part of New England’s Knowledge Corridor. Hartford is
increasingly being defined as the Knowledge Corridor’s
business center with its postmodern skyline, numerous
corporate headquarters, government district and easily
navigated main thoroughfares. Connecticut’s location
between New York City, Boston and Providence makes it an
ideal location for companies interested in having a suburban
feel with easy access to everything.
During 2011, Connecticut saw increased activity in all
sectors of the commercial real estate market and it is
expected that 2012 will show continued improvement. The
population for the region is expected to grow by 2% by 2015
which is in line with the state average. Employment growth
has been light; currently the unemployment rate is 8.9%
which is slightly below the national average of 9.1%. There
were 1,620,900 jobs in Connecticut in September 2011 according
to the CES survey of employers. The CPS survey of
households showed 1,708,329 employed persons for the
month. Connecticut added 3,400 jobs in September 2011
according to the CES survey while the broader CPS
employment measure rose by 7,135.
The Hartford office market and surrounding submarkets
ended Q3 2011 with a vacancy rate of 10.9%. The vacancy
rate was down over the previous quarter, with a net
absorption totaling positive 100,199 SF in Q3 2011. Vacant
sublease space increased to 264,549 SF at the end of the
quarter.
The Hartford industrial market and surrounding submarkets
ended the Q3 2011 with a vacancy rate at 9.9%, down from
the previous quarter with a net absorption of 346,044 SF.
Vacant sublease space increased to 685,314 SF at the end
of Q3 2011.
The Hartford retail market and surrounding submarkets
vacancy was 6% at the end of Q3 2011, slightly better
than the previous quarters 6.1% with a net absorption
of 175,894 SF and vacant sublease space decrease by
(3,875) SF.
Contact
NAI Emory Hill
+1 302 322 9500
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
1,015,478
1,081,158
524,045
$75,590
Delaware’s unemployment rate slowly decreased, hovering
at 8.1% into Q4 2011. Activity among all product types
remained slow throughout the year and vacancy remained
high. The lack of construction on the horizon is expected to
help recovery as activity inches upward. Businesses
continue to seek improvement on their bottom lines but
many are unable to adapt further.
Expiring leases are trending toward shorter term renewals,
however, some tenants have approached their landlords
to negotiate lower rates in exchange for longer term
commitments. The decrease in retail rates was not as severe
as in other property categories, with strip retail remaining
in demand, but the number of retail vacancies increased
slightly in the CBD and power centers as retailers relocated
or closed. Christiana Mall remained an exception as new
space was mostly absorbed with minimal remaining
vacancy. The newly opened Nordstrom has drawn increased
activity to the mall and many new retailers are expected to
open within the next few months.
The largest office sale transaction was the acquisition of
101 Bellevue Parkway by WR Berkley in September, 2011
for $9.25 million from Star Processing, Inc. Young Conaway
Stargatt and Taylor leased the former New Castle County
Courthouse (125,000 SF). Willis Insurance agency recently
leased 13,000 SF at 222 Delaware Avenue. In general
though, activity in the Wilmington CBD remains slow.
The University of Delaware acquired the former Chrysler site
in Newark and construction has begun. Building there will
continue through 2012 with the Thomas Jefferson medical
facility opening by 2013. However, the lack of an automaker
at the site has put a strain on industrial space in the market;
rates have decreased, and vacancies and absorption rates
have increased. Fisker’s purchase of the GM assembly plant
in Newport, which will begin production in early 2012, will
lead to some flex and industrial space absorption related to
just-in-time suppliers. We predict the slow increase in
activity will be maintained throughout 2012.
Median
Household Income
$69,655
Median
Household Income
$60,468
Total Population
Median Age
39
Total Population
Median Age
38
Hartford At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
Premium (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
$
N/A
16.00
11.00
N/A
16.62
11.46
$
$
$
$
N/A
35.00
36.75
N/A
25.27
20.62
N/A
$ 22.53
$ 15.33
N/A
$ 21.82
$ 17.75
N/A
17.20%
10.40%
N/A
13.00%
10.20%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
3.36
3.42
6.06
$
$
$
5.49
5.79
16.13
$
$
$
4.04
4.35
7.64
10.00%
9.90%
8.60%
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
9.43
10.65
7.63
12.43
$
$
$
$
16.43
17.37
22.00
29.50
$ 11.43
$ 13.51
$ 11.61
$ 20.76
5.10%
8.70%
4.30%
2.00%
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
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wilmington, DE (Cecil County, MD) 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
22.00
11.00
24.00
22.00
15.50
$
$
$
$
$
$
30.00
26.00
17.00
28.00
27.00
19.00
$ 27.50
$ 24.00
$ 16.00
$ 26.00
$ 22.50
$ 18.50
25.00%
20.00%
35.00%
15.00%
20.00%
30.00%
Bulk Warehouse
Manufacturing
$ 3.50
N/A
$ 5.50
N/A
$ 4.75
N/A
20.00%
N/A
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
$
8.00
12.00
15.00
15.00
20.00
$
$
$
$
$
15.00
18.00
40.00
30.00
40.00
$ 12.00
$ 15.00
$ 22.00
$ 37.00
$ 28.00
18.00%
8.00%
9.20%
11.00%
5.00%
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
$
$
$
$
$
$
40,000.00
200,000.00
90,000.00
150,000.00
300,000.00
35,000.00
$
$
$
$
$
$
75,000.00
330,000.00
200,000.00
350,000.00
400,000.00
100,000.00
2012 Global Market Report n www.naiglobal.com 88