2012 Global Market report - NAI Global

Washington, District of Columbia
Bradenton, Florida
Contact
NAI KLNB
+1 202 375 7500
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
5,692,986
6,142,565
3,181,058
$115,089
$87,202
35
Although Washington DC’s office market recorded positive
net absorption market-wide, vacancy increased slightly
overall due to the delivery of new vacant space. Negative
net absorption was posted in the CBD, largely due to
construction deliveries. These included the 392,000 SF
building at 1015 Half Street SE that was delivered fully
vacant and 733 10th Street, a 169,000 SF building that was
delivered 85% pre-leased.
The Washington DC metro office market has experienced
more than 1.3 million SF of positive net absorption year-todate.
Full-service asking rental rates for Class A space
averaged $54/SF. At the same time, the average full-service
asking rental rate for Class B space was $42/SF. A large
overhang of sublease space was available near the close of
2011, though it had been reduced from the start of the year.
The recovery in the Washington DC metro office market is
expected to continue at a slow pace into 2012.
While government leasing is expected to slow, leasing
activity in the private sector will likely begin to increase with
little to no rental rate growth expected region-wide until
2012. The fundamentals in the Washington DC region
remain strong and we expect the market to continue its
upward trend in subsequent quarters. Sales activity in the
District stayed relatively strong during 2011 as more than
$1.5 billion traded hands.
DC is one of the world’s top investment markets. 2011 saw
a record high sale price of $904/SF on the sale of a trophy
office in the East End. One of the largest industrial lease
signings that occurred in 2011 included the 95,578 SF
lease signed by the DC Metropolitan Police Department at
2850 New York Ave NE in the District.
In the retail sales market cap rates were lower in 2011,
averaging 7.20% compared to the same period in 2010
when they averaged 8.25%. The unemployment rate is at
11.1% compared to the national average of 9.1%.
Contact
NAI Manasota
+1 941 741 9667
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
712,161
751,808
327,506
$71,472
$50,735
47
The Sarasota-Bradenton-Lakewood Ranch (LWR) market
is doing “ok” since the residential market nightmare is
passing. Steady absorption rates and new housing construction
targeting a lower income market prevail. The impact on
the commercial market has peaked and office absorption
has improved in some sub-markets. New pockets of
expansion are occurring where the key drivers include
sports venues, big box and community centers along the
I-75/University Parkway corridor.
Per SF pricing continues to decline in the office market, but
we have witnessed an increase in volume and a new
normalization. Regional vacancy is 21% on 7 million SF of
space, down 32,000 SF and steady absorption in the LWR
University Parkway submarket where the largest transactions
took place for $13.25 million for a 54,928 SF building on
2.68 acres and $12.5 million for a 62,650 SF property.
The industrial market is strengthening. The biggest deal was
in Bradenton for a 123,357 SF building on 16.47 acres at
$15.4 million SF ($4,124.83/SF). It closed in March 2011.
The multifamily market is hot here as elsewhere. The largest
sale was in Bradenton with a 342,880 SF garden low-rise
on 28 acres for $23.2 million in June 2011.
The retail market continues to grow. With risk aversion high,
investors here turn to single tenant properties with high
quarterly figures. A new 176,000 SF Super Walmart will be
completed in 2012. Benderson reports absorption of
150,000 SF of retail space at University Parkway and I-75.
Land developers are rushing to buy approved land for
subdivisions from Pasco south to Naples. A parcel located
on SR 70 and I-75 in Bradenton recently sold for $22
million. Investments were made in the Port of Manatee area,
which boasts strong connections to Panama as it is the
closest US port to South America.
Three new contracts are underway in the University Parkway
area. A 70 acre, $110 million sports complex (Mustangs
Stadium) with cutting edge spa, private club and high-tech
sports training academy is under construction in LWR.
An expanded Benderson Park in LWR, Sarasota, is under
construction for $19.5 million. The project’s centerpiece is
a regional mall to break ground in 2012 next to the fully
leased big box center. Prices per SF continue to decline in
the market but are stabilizing in this area. A new Walmart is
also under construction at SR 70 & I-75.
Washington 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
$
$
$
42.00
26.00
15.00
N/A
N/A
N/A
$ 90.00
$ 82.00
$ 70.00
N/A
N/A
N/A
$ 60.00
$ 54.00
$ 42.00
N/A
N/A
N/A
N/A
11.50%
7.00%
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
$ 3.70
N/A
$ 16.50
N/A
$ 8.50
N/A
13.40%
N/A
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
$
8.50
40.00
20.00
20.00
35.00
$ 27.00
$ 62.50
$ 50.00
$ 65.00
$ 90.00
$ 16.00
$ 52.00
$ 35.00
$ 40.00
$ 62.00
10.10%
8.80%
4.00%
4.40%
N/A
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
$
$
2,000,000.00
N/A
N/A
N/A
2,000,000.00
N/A
$ 101,500,000.00
N/A
N/A
N/A
$ 101,500,000.00
N/A
Bradenton 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
$
$
$
$
N/A
13.50
11.00
N/A
12.00
10.00
$
$
$
$
N/A
22.00
16.00
N/A
16.00
12.00
N/A
$ 18.00
$1 4.00
N/A
$ 14.00
$ 10.00
N/A
14.20%
31.60%
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
3.00
3.00
N/A
$
$
6.00
6.00
N/A
$
$
4.00
4.00
N/A
N/A
N/A
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
14.00
10.00
10.00
N/A
$
$
$
25.00
10.00
24.00
N/A
$ 18.00
$ 12.00
$ 21.00
N/A
N/A
N/A
N/A
N/A
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
$
N/A
N/A
N/A
N/A
9,500.00 $
N/A
N/A
N/A
N/A
9,500.00
Residential
$ 3,444.00 $ 22,475.00
2012 Global Market Report n www.naiglobal.com 89