2012 Global Market report - NAI Global

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Chicago, Illinois Springfield, Illinois Contact NAI Hiffman +630 932 1234 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income$80,589 Median Household Income 9,574,523 9,577,417 5,025,583 $65,761 Chicago is the third largest metropolitan area in the US and the most influential economic region between the east and west coasts. Chicago’s advantageous location at the heart of the nation has fostered its development into an international center for banking, securities, high technology, distribution, business services, retail trade and manufacturing. Chicago is one of the principal trading centers for commodities, financial and derivative futures products with the Chicago Mercantile Exchange and Board of Trade. Historic buildings and modern high-rises define Chicago’s famous skyline, home to several of the tallest buildings in the country. Conditions in the downtown office market have been improving for the past year, the beginning of a modest recovery following a nearly two year period of rising vacancy rates when more than 5.3 million SF of vacant space was added to the market. During the year since, more than 43% of that vacant space has been absorbed through new leases and tenants expanding, pushing the vacancy rate down more than 160 basis points from its 17% peak. The Chicago suburban office market is comprised of several scattered pockets of corporate parks and high-rise office towers. Suburban vacancy rates, typically higher and more volatile than downtown, have not responded as favorably to the recovery as downtown rates have, as the market continues to respond to the overall economic situation. Any positive traction has been witnessed among high quality Class A properties, while Class B and Class C buildings continue to witness climbing vacancy rates and weak demand. The second largest industrial market and the most important transportation hub in the country, the Chicago industrial market has now been in a recovery phase for more than a year, evidenced by the absorption of vacant space and a declining vacancy rate. During the economic downturn and the months following its official end, 29.5 million SF of vacant space was introduced to the market between 2008 and 2010. Nearly half of that space has been recovered since. The area’s intermodal developments continue to play an active role in the recovery, and now provide service with both the BNSF and Union Pacific Railroads. Contact NAI True +1 217 787 2800 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 247,487 254,511 132,665 $66,782 $53,268 Springfield, the capitol of Illinois, accounts for approximately half of the population in the metropolitan areas of Sangamon and Menard counties. Springfield’s major employment sectors are government, medical, public service and small business. Money for commercial real estate loans is readily available. Springfield’s current economy has been impacted similar to that of the national economy. Government is the largest employer in the Springfield area. The two largest private employers in the region are St. Johns Hospital and Memorial Hospital, including SIU School of Medicine. Completed commercial developments in 2011 include a new Westside YMCA/Memorial Sports Care facility with rehabilitation services and two new construction satellite medical clinics. Ground breaking for a new skilled care nursing rehab facility took place in October 2011. Higher education opportunities include the University of Illinois at Springfield, Southern Illinois University School of Medicine and Lincoln Land Community College. Robert Morris University and Benedictine University at Springfield are the private colleges in the area. Retail growth in Springfield is recovering slowly with the opening of Scheels sporting goods chain in August of 2011. National chain stores and big box users like Super Walmart, Menards and Gander Mountain have opened within the past 36 months. An outlet shopping mall of 80 plus retailers encompassing +/- 340,000 SF is anticipated to break ground in the Q4 of 2011. Pepsi is relocating and expanding by building a new 50,000 SF facility on Springfield’s east side. Other national chain stores will continue to locate in Springfield. Farm land sale prices per acre are at a record high, approaching $12,000 per acre. Springfield has consistently been one of the most affordable communities in Illinois. Recreation opportunities in Springfield are plentiful with over 30 public parks offering tennis courts, ice rings and swimming pools. There are nine public golf courses, two country club golf courses, indoor/outdoor theatre venues and a 4,235 acre lake. Abraham Lincoln Museum and Library are two prestigious visitor/tourist attractions in Springfield. Total Population Median Age 35 Total Population Median Age 40 Chicago 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 Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Sub Regional Centers Regional Malls 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 $ 32.00 $ 55.00 $ 42.00 15.40% $ 21.00 $ 35.00 $ 29.00 16.50% N/A N/A N/A N/A $ 25.00 $ 33.00 $ 26.00 21.30% $ 17.50 $ 23.00 $ 19.50 24.90% $ 2.25 $ 6.00 $ 4.10 10.50% $ 3.00 $ 6.25 $ 4.40 10.50% $ 5.75 $ 10.00 $ 7.40 10.50% $ 45.00 $ 195.00 N/A 8.20% $ 12.00 $ 22.00 N/A 9.60% $ 16.00 $ 24.00 N/A 9.80% $ 28.00 $ 80.00 N/A 8.00% $ 3,484,800.00 $21,780,000.00 $ 275,000.00 $ 700,000.00 $ 150,000.00 $ 350,000.00 $ 50,000.00 $ 575,000.00 $ 250,000.00 $ 1,000,000.00 $ 50,000.00 $ 1,000,000.00 Springfield 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 Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls 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 $ 11.00 $ 15.00 $ 13.00 15.00% $ 8.00 $ 13.00 $ 11.00 20.00% $ 22.00 $ 30.00 $ 28.00 5.00% $ 15.00 $ 20.00 $ 16.00 10.00% $ 10.50 $ 16.00 $ 14.00 15.00% $ 2.50 $ 4.50 $ 4.00 10.00% N/A N/A N/A N/A N/A N/A N/A N/A $ 8.00 $ 13.50 $ 10.50 20.00% $ 9.00 $ 23.00 $ 17.00 12.00% N/A N/A N/A N/A N/A N/A N/A N/A $ 450,000.00 $ 870,000.00 $ 110,000.00 $ 300,000.00 $ 35,000.00 $ 100,000.00 $ 30,000.00 $ 200,000.00 $ 130,000.00 $ 480,000.00 $ 10,000.00 $ 25,000.00 2012 Global Market Report n www.naiglobal.com 97
Fort Wayne, Indiana Indianapolis, Indiana Contact NAI Harding Dahm +1 260 423 4311 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 419,733 433,290 220,696 $61,766 $50,495 The economic climate of the Fort Wayne market has remained constant through 2011 with an unemployment rate in the six-county MASMSA at 8.1%. Fort Wayne continues to revitalize its downtown. A $30 million baseball stadium, 900-space parking garage and a $35 million Courtyard by Marriott have been completed. A $14.5 million residential condominium/retail complex is expected to break ground in 2012 along with a $15 million redevelopment of the Anthony Wayne Building. The retail market slowed in 2011 with overall vacancy rates increasing to 19%. The strongest major retail submarkets are on the Dupont and Lima Road corridors in the northern section of the city and along Illinois Road in the southwest section. The completed widening of Lima Road should help to increase retail activity along that corridor. Kroger has invested $80 million to rebuild two 125,000 SF Marketplace stores at Dupont and Coldwater Road and at the Village of Coventry at I69 and West Jefferson Boulevard. The Maplecrest Road extension, connecting the northeast residential markets with New Haven, will be completed by 2012 and should help lead to future retail development. The industrial market has seen an increase in activity of sale and lease transactions with vacancy rates in this sector decreasing to 9.6%. There has been very little construction in this sector over the past few years and little is planned for 2011. This should remain the constant until there are improvements in economic conditions and the financial markets. The office market is stable with vacancy rates remaining constant at 17%. There has been very little construction in the office industry, but the market is experiencing strong growth in the medical office space submarket as Parkview Hospital continues its construction of a new regional medical center in the I-69/Dupont interchange. Both Parkview and Lutheran Hospitals continue to expand with new medical office buildings on their respective campuses. We project this market will continue to remain status quo due to economic conditions over the next few years with unemployment remaining close to current levels within the six-county MASMSA. Contact NAI Meridian +1 317 875 8888 Metropolitan Area Economic Overview 2011 Population 2016 Estimated Population Employment Population Household Average Income Median Household Income 1,783,661 1,893,503 955,436 $72,526 $55,440 The Indianapolis metro area continues to have a steady flow of transactions across all market segments. Although new construction in the multi-tenant sector is nonexistent. Consolidations are still influencing the market and while overall vacancies have seen little change, finding large tracks of space is becoming more difficult in both the office and industrial markets. The metro office markets are experiencing steady deal flow but little positive absorption. Many users are still downsizing or adding employees to their existing space reducing the need for more office space. While absorption is neutral, it is difficult to find large tracts of desirable space which will begin adding rental rate pressure to larger tenants in the market. The industrial market in metro Indianapolis has remained resilient in this challenging economic environment. YTD absorption has been 5,489,424 SF with an overall vacancy rate of 7.6%. The industrial market encompasses 298,582,634 SF. New construction is slim with only 87,000 SF underway. However, large tracts of space are difficult to find and we expect new construction to increase in the spring of 2012 to meet the demand of large users. The retail markets showed a slight uptick in Q3 2011 with a reduction in the vacancy rate from 7.85% to 7.68%. Positive absorption was 210,943 SF for the quarter, with just under 78,000 SF of new retail construction for the end of Q3. Vacant sublease space is still influencing this market segment with over 35,000 SF of sublease space on the market. Land in the CBD is currently at $135,939/acre low and $1,232,155/acre high. But there were no transactions of sold land in the CBD this year so these are historical numbers. There is one transaction pending for $3,254,237 for 1.18 acres. Land in office parks is selling for $158,792/acre low and $181,137/acre high. Industrial park land is at $68,181/acre low and $218,978/acre high (value is higher due to future development potential.) Non park land sells at $31,645/acre low and $600,000/acre high. Land in the retail market is currently at $55,000/acre low and $419,463/acre high. Total Population Median Age 35 Total Population Median Age 35 Fort Wayne 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 15.00 8.00 13.00 15.00 $ $ $ $ N/A 16.00 12.00 17.50 19.00 N/A $ 14.00 $ 10.00 $ 15.25 $ 17.00 N/A 15.00% 15.00% 75.00% 20.00% Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown $ $ $ $ $ 8.00 1.00 2.75 3.50 7.00 $ $ $ $ $ 10.50 3.00 4.75 5.50 12.00 $ $ $ $ $ 9.25 2.00 3.63 4.50 9.50 15.00% 10.00% 10.00% 10.00% 14.00% Neighborhood Service Centers Community Power Center Regional Malls $ $ $ 5.00 6.00 10.00 $ $ $ 18.00 22.00 35.00 $ 11.50 $ 14.00 $ 22.50 22.00% 15.00% 14.00% deVeloPment land Low/Acre High/Acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park $ $ $ N/A 110,000.00 44,000.00 65,000.00 $ $ $ N/A 175,000.00 125,000.00 120,000.00 Retail/Commercial Land $ 250,000.00 $ 1,000,000.00 Residential $ 10,000.00 $ 40,000.00 Indianapolis 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 Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls $ $ $ $ $ $ $ $ $ $ $ N/A 16.00 9.00 N/A 16.00 10.00 2.22 3.61 7.50 6.00 4.00 4.50 8.00 $ $ $ $ $ $ $ $ $ $ $ N/A 27.00 15.00 N/A 24.00 15.50 6.17 4.75 14.25 24.25 26.50 28.00 35.00 $ $ $ $ $ $ $ $ $ $ $ N/A 19.06 14.25 N/A 18.25 14.00 3.49 4.17 11.15 13.40 12.17 13.76 24.00 N/A 17.00% 22.00% N/A 21.00% 24.00% 7.00% 4.00% 14.00% 32.00% 18.00% 17.00% 13.00% deVeloPment land Low/Acre High/Acre Office in CBD $ 135,939.00 $ 1,232,000.00 Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential $ $ $ $ $ 158,700.00 68,100.00 31,600.00 55,000.00 5,000.00 $ $ $ $ $ 181,100.00 218,900.00 600,000.00 419,400.00 32,000.00 2012 Global Market Report n www.naiglobal.com 98
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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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Office The sovereign debt crisis an
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Area Type Q1 2010 Q2 2010 Q3 2010 Q
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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
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Jakarta, Indonesia Tokyo, Japan Con
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Christchurch, New Zealand Wellingto
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Taipei, Taiwan Ho Chi Minh City, Vi
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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 and 90: Hartford, Connecticut Wilmington, D
Page 91 and 92: Fort Lauderdale, Florida Ft. Myers/
Page 93 and 94: Miami, Florida Ocala/Gainesville, F
Page 95 and 96: Tampa Bay, Florida Atlanta, Georgia
Page 97: Boise, Idaho Southeast (Idaho Falls
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
Page 141 and 142: Houston, Texas Contact NAI Houston
Page 143 and 144: Salt Lake City, Utah Washington Cou
Page 145 and 146: Northern Virginia Seattle/Puget Sou
Page 147 and 148: Madison, Wisconsin Milwaukee, Wisco
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n Glossary n Acre Area of land equa
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