2012 Global Market report - NAI Global

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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
Fort Lauderdale, Florida Ft. Myers/Naples/Port Charlotte/Bonita Springs, Florida Contact NAI Rauch, Weaver, Norfleet, Kurtz & Co. +1 954 771 4400 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 5,599,440 5,744,653 2,816,414 $73,683 $50,739 Fort Lauderdale is a service market for southeast Florida. The major industries are tourism, finance and service related business with a strong segment of international trade. This area is serviced by three seaports, Port of Miami, Port Everglades and the Port of Palm Beach, as well as three international airports. An increase in import/export is driving industrial leasing. The seaports are gearing up for the 2014 completion of the Panama Canal expansion. The office market experienced a decline in occupancy in Class A space with rents unchanged. Class B space saw a slight increase in rates and leasing of available space. There is no new office construction in the market. Office vacancies are in the 10% to 20% range. Industrial vacancies are in the 10% to 20% range, with the High Tech/R&D space at the top end, and bulk warehouse and manufacturing space being leased up. As a result, rents are following suit with bulk space averaging $6.50/SF gross and manufacturing $8.00/SF gross. There is no new projected inventory in the pipeline that will aid in this continued recovery. The retail market has experienced a favorable decline in vacancies that ranged from 10% to 20% last year and are now reported at 4% to 15% with regional malls at the top end. Although rates have increased slightly, they are still within range to keep the stores occupied. Investors are delaying major purchases unless they can buy at 40% to 50% of previous values. Cap rates are up to at least 8.5% to10.5% based on current income without credit for any vacant space. The multifamily sector had some transactions but most sellers do not want to discount prices. Multifamily occupancy is up with most projects above 90% occupancy. Rents on multifamily projects are trending upward but most owners are careful not to raise rates aggressively for fear of losing tenants. The policy of most landlords is to do anything to keep the current tenants in place as new tenants are few and far between. New construction may be on the horizon for 2012. Contact NAI Southwest Florida +1 239 437 3330 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 997,788 1,093,248 463,699 $73,520 $50,764 2011 was a positive change with vacancy rates and prices beginning to stabilize. Development has been slowed as banks continue to realize the effects of the economy. There is the promise of plenty of cash in the marketplace from both inside and outside of the US. Many developers profess to be more active in the “green” marketplace and landlords are retaining and attracting new tenants as their primary concern. 2012 looks to have a brighter future. The Southwest Florida market has many positive factors when you consider it’s a coastal location offering a positive impact on the quality of life. Southwest Florida can also boast that many prominent, former and current business executives live in the area at least part of the year. This expertise and experience serve as valuable resources to the business community. Our area is home to many higher education campuses; Edison State College, Hodges University, Ave Maria University and Florida Gulf Coast University which is a member of the State University System of Florida. 2012 brings with it the encouragement of new companies finding their way to Florida’s Gulf Coast for regional and corporate office locations. Retaining jobs is even more important to regional economic development groups than attracting new "cluster" industries. Valuing what you already have is just as important as bringing in new industries to your community. The region stretches from the 10,000 islands north to Port Charlotte and from the Gulf of Mexico east to Lehigh Acres. This area continues to be home to a growing population of young professionals, and opportunities continue to grow other industries, including biotechnology and healthcare. The John Madden Company is planning to break ground on their Research Loop at the Southwest Florida International Airport which will introduce new, high paying career opportunities that will only further propel our region forward. Charlotte, Collier, Hendry and Lee Counties reported increased unemployment in 2009. Lee County’s unemployment rate rose to 14.7% in 2011. Collier County’s unemployment rate increased to 13.98% and Charlotte County’s figure grew to 13.79%. The unemployment rate is not seasonally adjusted. Total Population Median Age 38 Total Population Median Age 39 Fort Lauderdale 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 $ 25.00 $ 20.00 $ 15.00 $ 22.00 $ 19.00 $ 15.00 $ 29.00 $ 31.00 $ 26.00 $ 25.00 $ 27.00 $ 22.00 $ 27.00 $ 22.00 $ 20.50 $ 23.00 $ 23.00 $ 18.50 20.00% 22.00% 10.00% 20.00% 20.00% 15.00% Bulk Warehouse $ 5.00 $ 8.00 $ 6.50 10.00% Manufacturing $ 6.00 $ 10.00 $ 8.00 12.00% High Tech/R&D retaIl $ 5.50 $ 7.50 $ 6.00 20.00% Downtown $ 10.00 $ 23.05 $ 16.50 6.00% Neighborhood Service Centers $ 7.00 $ 18.00 $ 12.50 4.00% Community Power Center Regional Malls $ 17.75 $ 25.00 $ 25.00 $ 60.00 $ 19.75 $ 30.00 8.00% 15.00% deVeloPment land Low/Acre High/Acre Office in CBD $ 500,000.00 $ 1,000,000.00 Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential $ $ $ $ $ 300,000.00 220,000.00 220,000.00 400,000.00 400,000.00 $ $ $ $ $ 600,000.00 500,000.00 500,000.00 700,000.00 600,000.00 Ft Myers/Naples/Port Charlotte/Bonita Springs 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 $ $ $ $ $ $ 17.00 15.00 10.00 17.00 15.00 12.00 $ $ $ $ $ $ 24.00 17.00 13.00 19.00 17.00 14.00 $ 20.00 $ 16.00 $ 12.00 $ 17.50 $ 15.00 $ 13.00 16.70% 18.00% 17.00% 50.00% 50.00% 50.00% Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers $ $ $ $ $ 1.00 2.00 6.00 5.00 7.00 $ $ $ $ $ 3.50 3.00 8.00 8.00 10.00 $ $ $ $ $ 2.00 2.50 7.00 7.50 8.00 15.00% 11.00% 16.00% 18.00% 16.50% Community Power Center Regional Malls $ $ 10.00 20.00 $ $ 15.00 70.00 $ 13.00 $ 45.00 9.00% 13.00% deVeloPment land Low/Acre High/Acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park $ $ $ N/A 98,000.00 75,000.00 50,000.00 $ $ $ $ 275,000.00 100,000.00 80,000.00 75,000.00 Retail/Commercial Land Residential $ 250,000.00 N/A $ 1,000,000.00 N/A 2012 Global Market Report n www.naiglobal.com 90
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2012 Global Market report Values, t
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n n n table of contents General Inf
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Global Outlook US Year in Review As
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On the Road to Recovery % of Loss S
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55% (1.1 million) owning and 45% (8
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short-term leases, the multifamily
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Alberta is home to Canada’s oil a
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Office The sovereign debt crisis an
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Area Type Q1 2010 Q2 2010 Q3 2010 Q
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obust telecom infrastructure and av
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egion’s cities. Nevertheless, lea
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For 2012, absorption in the commerc
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n us Highlights - northeast region
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n us Highlights - midwest region n
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n us Highlights - West region n Ari
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Adelaide, Australia Brisbane, Austr
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Sydney, Australia Beijing, China Co
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Shanghai, China Shenzhen, China Con
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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: Hartford, Connecticut Wilmington, D
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
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Houston, Texas Contact NAI Houston
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Salt Lake City, Utah Washington Cou
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Northern Virginia Seattle/Puget Sou
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Madison, Wisconsin Milwaukee, Wisco
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n Glossary n Acre Area of land equa
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