2012 Global Market report - NAI Global

Tampa Bay, Florida
Atlanta, Georgia
Contact
NAI Tampa Bay
+1 727 585 2070
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
2,818,189
2,964,989
1,401,254
$66,821
$48,650
40
The Tampa Bay market bottomed in late 2010 and has
continued to recover at a slow but steady pace. The most
active sector of the market is multifamily apartment and
condominium investments of which our firm is a leader.
The Tampa Bay apartment investment market recovery is in
full swing. The market is on pace to double the number of
transactions completed in 2010 with Class A assets trading
at sub 6% cap rates. Class B apartments are selling for
7% to 9% cap rates and Class C properties are trading
between 10% to 12% cap rates. Rental rates have started
to increase and concessions have all but diminished back
to normal market conditions with average occupancies
approaching 92% area wide. The REO product pipeline has
started to slow and inventory is tight.
The Tampa Bay office market has not seen any notable
recovery as of the publishing date of this information. Class
A market rents continue to see downward pressure as
tenants jockey for deals in the market. Class B and suburban
office buildings have experienced a small increase in
occupancy but it appears to be from Class A tenants
stepping down into lower rent assets.
The Tampa Bay retail market continues to suffer the same
fate as the office market with tenants shopping for price and
terms. Several big box locations still remain dark in prime
areas.
The Tampa Bay Industrial market is a mixed bag of old and
new product. The older, low ceiling facilities cannot compete
with new 24 foot clear span tilt wall properties.
Contact
NAI Brannen Goddard
+1 404 812 4000
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
5,310,331
5,375,508
2,837,378
$68,635
$55,315
35
Georgia has been continually growing since the late 1960s.
The Atlanta metropolitan area currently boasts a population
of more than 5.3 million, making it the seventh largest
metropolitan area in the US. Atlanta continues to attract a
talented workforce and is home to some of the nation’s top
companies. The area draws companies eager to take
advantage of low business and living costs, global
connectivity through the airport, top research universities
and a high quality of life.
In the Atlanta office market, concessions reached a plateau
and small to midsized firms looking for space were being
affected. Larger tenants continue securing favorable terms
as building owners are reluctant to subdivide bigger blocks
of existing vacant space. With over 210 million SF of
inventory, the Atlanta office market has recorded positive
absorption of late with more space filled than vacant.
Vacancy rates are averaging 19% and rental rates continue
on a downward trend. Atlanta will see modest absorption
gains in the coming quarters, most of which will be located
in Class A buildings. Construction levels will remain low or
non-existent.
Atlanta’s industrial market, with over 10.7 million SF of
leasing activity year-to-date, is on track to finish the year
with the largest occupancy gains in several years. The
increases are due to expansions, regional consolidations
and some small new business growth. Currently there
is over 575 million SF of inventory with 409,006 SF of
deliveries year-to-date. Vacancy rates have dropped slightly
to 13.6% and rental rates have decreased slightly from this
time last year.
Atlanta’s retail market, with over 348 million SF of inventory,
has seen some positive momentum over the past couple of
quarters. Shopping centers saw a majority of the activity as
well as retailers backfilling some of the empty big boxes.
Vacancy remains in the 10% range and no new construction
projects are on the horizon. Modest activity should continue
to keep the market positive and slowly reduce the amount
of vacant space available.
Atlanta’s top industry sectors are trade, transportation and
utilities, professional and business services and government.
Businesses include 10 FORTUNE 500 headquarters, over
2,100 international companies and thousands of small
businesses.
Tampa Bay 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
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$ 23.00 $ 28.00 $ 25.00 30.00%
$ 18.00 $ 28.00 $ 25.00 30.00%
$ 10.00 $ 16.00 $ 13.00 15.00%
$ 20.00 $ 24.00 $ 22.00 30.00%
$ 15.00 $ 21.00 $ 18.00 30.00%
$ 12.00 $ 18.00 $ 16.00 30.00%
$ 2.50 $ 6.00 $ 4.00 25.00%
$ 3.50 $ 6.50 $ 5.00 25.00%
$ 4.50 $ 8.50 $ 7.50 10.00%
$ 8.00 $ 12.00 $ 10.00 20.00%
$ 8.00 $ 16.00 $ 14.00 20.00%
$ 12.00 $ 18.00 $ 16.00 20.00%
$ 21.00 $ 40.00 $ 35.00 15.00%
Atlanta 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
$
$
$
$
$
$
24.50
19.09
14.88
18.50
19.78
14.63
$ 33.00
$ 24.55
$ 18.81
$ 27.93
$ 21.89
$ 18.09
N/A
N/A
N/A
N/A
N/A
N/A
N/A
22.10%
14.30%
16.00%
21.30%
20.80%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
2.86
2.00
4.72
$
$
$
4.36
4.00
9.06
N/A
N/A
N/A
13.50%
12.20%
16.90%
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
10.00
9.42
11.27
16.00
$ 40.00
$ 23.67
$ 27.11
$ 55.00
N/A
N/A
N/A
N/A
7.80%
15.10%
9.80%
5.80%
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
$ 30,000.00 $ 100,000.00
$ 30,000.00 $ 100,000.00
$ 25,000.00 $ 75,000.00
$ 20,000.00 $ 50,000.00
$ 75,000.00 $ 300,000.00
$ 20,000.00 $ 120,000.00
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
$
10.00
50,000.00
25,000.00
35,000.00
$
$
$
$
25.00
200,000.00
75,000.00
150,000.00
Urban Retail/Commercial Land $ 500,000.00 $ 3,000,000.00
Retail/Commercial Land
Residential
$
$
75,000.00
10,000.00
$
$
400,000.00
150,000.00
2012 Global Market Report n www.naiglobal.com 94