alabama commercial property update presented by: donald gambril morgan solomon caleb davis carter...
TRANSCRIPT
ALABAMA COMMERCIAL
PROPERTY UPDATEPresented by:
Donald Gambril
Morgan Solomon
Caleb Davis
Carter Harsh
Data Provided by: &
MULTIFAMILY
Huntsville - Multifamily
2008 2009 2010 2011 201284%
86%
88%
90%
92%
94%
96%
98%
100%
94%
91.3%
89.9%
92.1%92.9%
Occupancy 92.9%
2008 2009 2010 2011 2012 $500
$550
$600
$650
$700
$750
$800
$635 $655
$668 $685
$691
$691 ($.71/SF)Market Rate
Huntsville - MultifamilyNew Construction
• Deliveries• 250+ units• Belk Hudson Lofts
Under Construction• 700+ units• Addison Park, Limestone Creek, Providence Place
Pending/Planned • 1800+ units
Belk Hudson Lofts
Birmingham - Multifamily
2008 2009 2010 2011 201286%
88%
90%
92%
94%
96%
98%
100%
92.40%
90.7% 91.1%92.3%
93.6%
Occupancy 93.6%
2008 2009 2010 2011 2012 $500
$550
$600
$650
$700
$750
$800
$733 $749 $744
$761 $768
$768 ($.75/SF)Market Rate
Birmingham - MultifamilyNew Construction
• Deliveries• 740+ units• 29 Seven, The Hill, Parc @ Grandview, Tapestry Park
Under Construction• 650+• Ashby @ Ross Bridge, Lane Park, Vulcan Park
Pending/Planned• 2400+ units • 10+ properties
Tapestry Park
The Hill
Montgomery - Multifamily
2008 2009 2010 2011 201275.0%
80.0%
85.0%
90.0%
95.0%
100.0%
89.3%87.4% 88.5%
89.7% 90.1%
Occupancy 90.1%
2008 2009 2010 2011 2012 $500
$550
$600
$650
$700
$750
$800
$661
$696 $705 $724 $712
$712 ($.71/SF)Market Rate
Montgomery - MultifamilyNew Construction
• 250+ units• Includes 207 LIHTC units
Under Construction• 600+ units• Grand Reserve at Pike Road
Pending/Planned• 770+ units
The Grand Reserve at Pike Road
Mobile - Multifamily
2008 2009 2010 2011 201284.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
93.4%
89.8%
92.6%91.4%
90.3%
Occupancy 90.3%
2008 2009 2010 2011 2012 $500
$550
$600
$650
$700
$750
$800
$651
$675 $686
$709 $714
$714 ($.75/SF)Market Rate
Mobile - MultifamilyNew Construction
• 1090+ units• Campus Quarters, Crossings at Cottage Hill, Woodside
Under Construction• 90+ units
Pending/Planned • 400+ units
Campus Quarters
Alabama - Multifamily
Birming
ham
Hunts
ville
Mob
ile
Mon
tgom
ery
US88.0%
89.0%
90.0%
91.0%
92.0%
93.0%
94.0%
95.0%
93.6%
92.1%
90.3% 90.1%
94.2%*
Occupancy 2012 Improvement Consistent with National Trends
• YTY construction starts up (↑39.5%) nationally**
• YTY decrease in unemployment (↓0.7%)
• Shift in preferences towards flexibility of renting
*axiometrics.com** US Census
RETAIL
Huntsville - RetailOccupancy Market Rate92.0% $10.22/SF
2009 2010 2011 201275%
80%
85%
90%
95%
100%
General Mall Power Center
Shopping Center Total Retail
2009 2010 2011 2012$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
General Mall
Power Center Shopping Center
Total Retail
Huntsville - RetailDeliveries• 14 Properties • Total RBA= 589,808 sq. ft.• Shoppes of Madison
Under Construction• No new construction reported for 2013
Top Leases
200 NE Oakwood Ave; 47,293 sq. ft.• 1st Quarter 2012• North Huntsville
University Plaza• 24,980 sq. ft. (Home Goods)• North Huntsville• 3rd quarter 2012
Birmingham – RetailOccupancy Market Rate $9.69/SF91.0%
2008
2009
2010
-1
2010
-2
2010
-3
2010
-4
2011
-1
2011
-2
2011
-3
2011
-4
2012
-1
2012
-2
2012
-3
2012
-475%
80%
85%
90%
95%
100%
General Mall Power Center
Shopping Center Specialty Center Total Retail
2008
2009
2010
-1
2010
-2
2010
-3
2010
-4
2011
-1
2011
-2
2011
-3
2011
-4
2012
-1
2012
-2
2012
-3
2012
-4$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
General Mall
Power Center Shopping Center
Specialty Center Total Retail
Birmingham – Retail Deliveries
• 8 Properties• Total RBA= 85,214 sq. ft.• Walgreens (Clairmont Avenue)
• 20,000 sq. ft.
Under Construction• 9 Properties (5 in Tuscaloosa)• Total RBA = 211,546 sq. ft.
• Elevated 136,000 sq. ft. Target at Brookwood Mall • Opening March 2013
• Westin Hotel and Entertainment District• Regions Field (Birmingham Barons)
• Opening April 2013• Expected to be catalyst for retail development
Top Leases 6400 Aaron Aronov Dr
• (The Foundry Rescue Mission) • 104,620 sq. ft.• 4th Quarter 2012• Bessemer
Winn Dixie at Inverness Corners• 50,000 square feet• Signed January 2013
Montgomery – RetailOccupancy Market Rate92.0% $7.83/SF
2009 2010 2011 201275%
80%
85%
90%
95%
100%
General Mall Power Center
Shopping Center Specialty Center Total Retail
2009 2010 2011 2012$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
General Mall
Power Center Shopping Center
Specialty Center Total Retail
Axis Title
Montgomery – RetailDeliveries
• 1 Property (North Montgomery)• Total RBA= 5,000 sq. ft.
Under Construction• No confirmed new construction reported for 2013• Proposed Mixed-Use project in CBD
• 16,000 sq. ft. of retail under 65 class A apartments
Top Leases• 3801 Eastern Blvd. (North Montgomery)• 1st Quarter 2012• Total RBA= 30,000 sq. ft.• Phillips, Edison, & Company
Mobile – RetailOccupancy Market Rate94.0% $12.35/SF
2009 2010 2011 201275%
80%
85%
90%
95%
100%
General Mall Power Center
Shopping Center Specialty Center Total Retail
2009 2010 2011 2012$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
General Mall
Power Center Shopping Center
Specialty Center Total Retail
Mobile - RetailDeliveries
• 2 Properties (1 West Mobile, 1 Midtown)• Total RBA= 13,178 sq. ft.
Under Construction• No new construction reported for 2013
Top Leases• Hillwood Center (White-Spunner & Associates)• Publix• 1st Quarter 2012• Total RBA= 45,600 sq. ft.
Alabama – Retail Occupancy - 4th quarter 2012 Occupancy consistent with National
trends
• Average statewide occupancy 4th quarter = 93%
• Occupancy rates remained stable since 2009 with slight increases in 2012.
• Huntsville had positive net absorption 4th quarter 2012
• Flat net absorption in Mobile market
• Negative net absorption 4th quarter 2012 in both Birmingham and Montgomery
Hunts
ville
Birming
ham
Mon
tgom
ery
Mob
ileU.S
.89%
90%
91%
92%
93%
94%
92%
91%
92%
94%
93%
Occupancy
OFFICE
Huntsville – Office
Occupancy Market Rate 90.4% $18.00/SF
2009 2010 2011 2012$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
2009 2010 2011 201250.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
Class A Class B Total
Huntsville – Office
Deliveries• 2 Properties
• Total RBA= 242,000 SF
Under Construction• 2 Properties
• Total RBA =221,000 SF
Significant Leases• Redstone Gateway, 4 Buildings – 121,000 SF/ each
• Boeing agreed to lease 3 buildings
• Dynetics leased 1 building
Birmingham – Office
Occupancy Market Rate 87.0% $18.33/SF
2009 2010 2011 2012$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
2009 2010 2011 201286.0%
87.0%
88.0%
89.0%
90.0%
91.0%
92.0%
93.0%
Class A Class B Total
Birmingham – Office
Significant Deliveries• 2 Properties
• Total RBA= 72,500 SF
No Properties Currently Under Construction
Significant Leases• Regions Plaza - 85,626 SF
• Colonnade 3500- 59,564 SF
• Concord Center – 54,742 SF
• Grandview II- 33,385 SF
Regions PlazaConcord Center
Cardiovascular Assoc.
Levall Building
Montgomery – Office
Occupancy Market Rate 89.7% $15.49/SF
2009 2010 2011 201250.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
2009 1q 2010 1q 2011 1q 2012 1q$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
Class A Class B Total
Montgomery – Office
No New Deliveries in 2012
No Properties Currently Under Construction
Significant Sales and Leases• One Commerce Street- 125,000 SF, Sale $13.6 M
• 2545 Taylor Rd- 60,000 SF
• 445 Dexter Av- 18,000
• 1 Dexter Plaza- 16,000
445 Dexter- RSA
One Commerce
Mobile – Office
Occupancy Market Rate 89.9% $11.96/SF
2009 2010 2011 201286.0%
87.0%
88.0%
89.0%
90.0%
91.0%
92.0%
93.0%
2009 2010 2011 2012$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
Class A Class B Total
Mobile – Office
No New Deliveries in 2012
No Properties Currently Under Construction
Significant Leases• Research Park Bldg III - 11,110 SF
• 22 Mobile St- 4,500 - SF
Alabama – Office
Occupancy Strong Occupancy Compared to National Average
• Average occupancy 3% higher than national average
• Since 2011 All for major markets have stabilized around 90%
• New Deliveries and construction well below national average
• Average market rate in Alabama $14.23 compared to national average of $23.12
09 10 2011 201284.0%
85.0%
86.0%
87.0%
88.0%
89.0%
90.0%
91.0%
92.0%
Huntsvillel Birmingham Montgomery
Mobile National
INDUSTRIAL
Huntsville – Industrial
Occupancy Market Rate 86.3% $5.98/SF
2009 2010 2011 2012 $-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
Flex Warehouse Total Market
2009 2010 2011 20127000%
7500%
8000%
8500%
9000%
9500%
10000%
Flex Warehouse Total Market
Huntsville – Industrial
Deliveries• 2 Properties
• Total RBA= 73,434 SF
Under Construction• There is no new construction scheduled to
be delivered in 2013
Significant Leases• 4905 Moores Mill Rd -1,370,974 SF
• Third Qtr.
• 9805 Kellner Rd - 143,965 SF
• Third Qtr.
Birmingham – Industrial
Occupancy Market Rate 91.1% $3.45/SF
2009 2010 2011 20127000%
7500%
8000%
8500%
9000%
9500%
10000%
Flex Warehouse Total Market
2009 2010 2011 2012 $-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Flex Warehouse Total Market
Birmingham – Industrial
Deliveries• 2 Properties
• Total RBA= 1,038,000 SF
• 100% Occupied
Significant Leases• 165 Goodrich Dr
• Tenant: NDI Office Furniture
• 61,658 SF
• 1000 Pinehill Rd
• 45,000 SF
Under Construction• There is no new construction scheduled to
be delivered in 2013
Montgomery– Industrial
Occupancy Market Rate 79.8% $2.94/SF
2009 2010 2011 20127000%
7500%
8000%
8500%
9000%
9500%
10000%
Flex Warehouse Total Market
2009 2010 2011 2012 $-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
Flex Warehouse Total Market
Montgomery – Industrial
Deliveries• No New Deliveries
Under Construction• No New Projects Under Construction
Significant Leases• Hodges Dixie Warehouse – 40,000 SF
• Third Qtr.
• 3345 Aronov Ave – 20,000 SF
• Third Qtr.
Mobile – Industrial
Occupancy Market Rate 88.6% $4.22/SF
2009 2010 2011 20127000%
7500%
8000%
8500%
9000%
9500%
10000%
Flex Warehouse Total Market
2009 2010 2011 2012 $-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
Flex Warehouse Total Market
Mobile – Industrial
Deliveries• 1 Property
• Total RBA= 7,531 SF
• 100% Occupied
Under Construction• There is no new construction scheduled to
be delivered in 2012
Significant Leases• 3406 Georgia Pacific Ave – 24,600 SF
• Alabama Roof Supply
• 65 Sidney Philips Dr – 21,100
Alabama – Industrial
Occupancy 90.25% Below Average Occupancy Compared to National Average
• Average occupancy 4% below national average
• Birmingham has had a stable market since 2008
• 2012 New Deliveries: • National: 66,827,568 SF• Alabama: 1,118,965 SF
1.7%
Huntsville Birmingham Montgomery Mobile National50.00%
55.00%
60.00%
65.00%
70.00%
75.00%
80.00%
85.00%
90.00%
95.00%
100.00%
THANK YOU
Tanner SumnersOffice Real Estate Mentor
David OakleyMultifamily Real Estate Mentor
Robert JollyRetail Real Estate Mentor
Jack BrownIndustrial Real Estate Mentor
Mentors